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Inheritance help

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Hi,
i hope you savvy people can advise me. I have just inherited £600,000 from a relative.
My own mortgage is paid off. I don't intend to move. I plan to give my son £250,000 to buy a house using the 7 yr tax rule. Anybody have any ideas for the best place to put it. I am a 64 yr old recently retired female. My husband is also retired and 73. i have thought of national savings as it should be safe. I will use my ISA allowance for both of us first. Thankyou.

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  • eskbanker
    eskbanker Posts: 37,208 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I plan to give my son £250,000 to buy a house using the 7 yr tax rule.
    Just to be clear, the 7 year rule isn't really something you can use as such, it simply means that if you live for less than seven years after making the gift, it'll be included in your estate for IHT purposes.

    In terms of the wider question, much will depend on what you want to use the money for and when, but you might find this helpful:

    The Flowchart - UKPersonalFinance Wiki
  • Hi
    money due within the next 28 days. Thanks
  • Albermarle
    Albermarle Posts: 27,905 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Hi,
    i hope you savvy people can advise me. I have just inherited £600,000 from a relative.
    My own mortgage is paid off. I don't intend to move. I plan to give my son £250,000 to buy a house using the 7 yr tax rule. Anybody have any ideas for the best place to put it. I am a 64 yr old recently retired female. My husband is also retired and 73. i have thought of national savings as it should be safe. I will use my ISA allowance for both of us first. Thankyou.
    Putting the remaining £350K in a NS&I savings account is safe in one way, but long term makes you vulnerable to inflation.
    Today savings rates are above inflation, but that is often not the case, so the real value of cash savings gets slowly eroded. Not helped by NS & I not normally having the best rates on offer.
    So really it would be sensible to invest some of the money as long term it should grow more and beat inflation.
    No need to invest in anything too risky, just a mainstream medium risk investment.
    It depends to some extent, what your objectives for this £350K are, and whether you already had significant savings and investments already.
    An annuity is also a possibility with some of it.
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