Advice Please

BobbyJJK

Evening all,

I am looking for some advice, I am due to inherit a large sum of money, and I know absolutely nothing about money, savings and investments etc. My first query is that I am bipolar, and am extremely worried that if the money is too easy to access, I may spend large amounts when I’m going through a manic episode, and to be honest this is the amount of money you see once in a lifetime, so what can I do to safeguard my money and at the same time allow me a small amount to top up my income when needed, to pay bills, or cover something unexpected. I have looked at putting the money into a discretionary trust, and having trustees who could watch over the money, but I’ve been told that these can sometimes be unwise as the trustees could misappropriate funds, not sure if that’s true or not, if that is the case and there is nothing to protect the money, I really don’t know who I trust enough to give them that responsibility.

My other question is what to do with the money, I would like the money to work for me, in the hope that I could live off the interest and keep a large sum in the bank for when I get to retirement age, but I have no idea about savings or tax on interest etc, and I’m not sure how to find a good financial advisor, is there a website with a list of recommended FA’s like you get with solicitors? I’d be really grateful for any advice to protect and make the most out of the money. I am not interested in buying property as I don’t think I could deal with everything that comes with property investments.

justme111

google search "IFA" - independent financil adviser

Plus

I probably wouldn't Google, as who knows what could turn up. MSE has a useful guide on finding an IFA:

https://www.moneysavingexpert.com/savings/best-financial-advisers

Superscrooge

https://www.unbiased.co.uk will list IFA's in your area.

Most IFA's give a free initial consultation, so I suggest try two or three, until you find one you are comfortable with.

sixpence.

I came across this a while ago whilst researching something, not sure if it will help: https://www.rethink.org/carers-family-friends/set-up-a-trust-fund

If you have an illness I would suggest low risk passive investing Is there any way a family member could help you to manage the money?

Kim_13

This MSE guide explains where you can save the money for maximum returns: https://www.moneysavingexpert.com/savings/which-saving-account. Returns may be higher if you invest instead, but in that case there's the risk you could lose money.

High interest current accounts are the obvious place for money you may need to top up your income.

If you're under 40 or a first time buyer, a Lifetime ISA or Help to Buy ISA is the obvious place for some longer term savings, due to the 25% government bonus on contributions.

If managing your own accounts, you could have a look at some limited access accounts (though only you know if a loss of interest penalty, x withdrawals permitted or a Lifetime ISA early withdrawal penalty (effectively losing 6.25% of what you put in) is likely to be enough to stop you touching the money. There are some accounts that don't allow any withdrawals until the term of the account is up.

BobbyJJK

Hi, thanks for all the advice, with regards to a family member controlling my finances, would it be a case of just giving them the money to look after, via a bank account in there name, or is there a legally binding way of ensuring the money cannot be misappropriated, I know we should be able to trust relatives, but I!!!8217;ve been let down by people in the past, and it!!!8217;s left me rather sceptical.

xylophone

If you have a trustworthy relation, you could grant him Power of Attorney.

Accounts would be in your name so that you retain legal and beneficial ownership but the Attorney would have control.


https://www.gov.uk/power-of-attorney

Initially, the whole inheritance can be safely held in NS&I.

https://www.nsandi.com/our-products

You and your Attorney could consult an Independent Financial Adviser.


https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser