Advice on inheritance

Partner has recently came into a substantial inheritance. They are not interested in buying property. So is looking on how to best maximise by way of saving/current accounts and ISA. Also concerned regarding the 85k protection threshold and how best to avoid this. Any help advice would be most appreciated. 


  • eskbanker
    eskbanker Posts: 29,811
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    Impossible to give any meaningful guidance from that level of detail, but perhaps worth navigating through this for ideas:

    The Flowchart - UKPersonalFinance Wiki
  • thegreenone
    thegreenone Posts: 954
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    If your partner is not sure what to do, this may be a starter point as a holding account.

    Direct Saver | Our Savings Accounts | NS&I (

    Do they need monthly income?
    Are they happy to lock money away gaining yearly interest?
    Higher rate tax payer?

  • Bigwheels1111
    Bigwheels1111 Posts: 2,234
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    First things first.
    How much does he earn, Above £12,570 a year or below.
    Second earn above £17,570 a year.
    If he earns say 10k a year, any interest upto £8,570 would be tax free.
    If he earns more than £17,570 1k interest would be tax free.
    Once you go over £18,570 interest would be taxed at 20% or 40% high earner.
    Watch out for the 85k FSCS limit.
    People think My 85k is safe, well it is.
    But if you you took out a 5 or 7 year fixed rate bond with annual payout today the best rate is 4.5% that would give £3,825 interest. That interest would be at risk as only 85k is covered.
    If 20% tax is to be paid an ISA now and another in April is a good plan, Give you 20k to open an ISA saves more tax.

  • Linton
    Linton Posts: 17,015
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    WHat you do with a large inheritance depnds on how large.  If it's below say £100K then pension + high interest savings with possibly some non pension share based investments could make sense.  If it is substantially  more than £100K I suggest you pay for advice from an Independent Financial Advisor which apart from the question of where you put your money could also cover issues like possible early retirement, inheritance planning and tax.

    The danger with just using savings accounts is that over the long term the returns are likely to lose out fo inflation.
  • Albermarle
    Albermarle Posts: 21,043
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    Normally you should work out when you might need the money to spend. Then any needed in the next 5 years should be in savings accounts. Any needed for retirement should be in a pension. Anything in between a Stocks and shares ISA, or maybe pay off a mortgage. 
    This is a bit of a generalisation as a lot depends on the person and their financial circumstances, of which you have supplied almost no details.
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