How to look after a sudden large amount of money

widowedmum26

I have come into a large amount of money, due to the loss of my husband. 6 figures. I will also be getting another smaller sum of money in the coming months due to redundancy. (breakdown pending with 2 huge blows to my life!)

I am after advice of how i should look after this money for the future of myself and my 3 children. Best places to save or invest? Is there a limit what i can give my children to prepare them for their future? again tax is something else i have no clue about as never been in this position and didn’t think i ever would be. I am going to struggle to return to full time work for a while, with 3 children and no support to help with looking after them. so some of the money will see me through that and allow me to be more present for my grieving children.

Keep_pedalling

Really sorry for your loss. Coming into large amounts of money in such circumstances can be overwhelming and this maybe a case for you to consult with an independent financial advisor for advice on investing for your (and your children’s) future.

No need to worry about tax that only applies to income earned on your investments / savings. Although there is nothing stopping you gifting to your children and although this sounds like a large amount of money I would hold fire on that for the short term as your will likely need to have at least some dependency on it for many years.

How old are your children? Do you own your own home? If so is it mortgaged?

widowedmum26

children are 15, 11 & 8. I own our home outright as his life insurance covered the rest of that whilst he was still with us.

Yes i will definitely need to rely on this for a little while unless i find something that will work around school etc (not that easy to find!) but there is still enough to give them a start on a home. Im just not sure what the best savings accounts are, what the best ISAs are for children or even myself? Stocks & share ISAs etc. but like you say probably better to try and speak to someone properly who can actually give me some direction. Thank you

Sea_Shell

Sorry for your loss.

You don't say exactly how much, but what's best will likely depend on where you are on the "6 figure" scale.

What to do with £999,999 is a very different proposition to £100,000.

LHW99

Don't make any immediate decisions, you need to recover balance first.

NS&I is covered by the government to any amount, while banks, building societies etc are covered for around 6 months for unexpected large sums, otherwise for £120k.

Make sure you have enough easily accessible for at least 3 months normal living expenses (NS&I isn't always the best at responding quickly), and take a breather. Life doesn't get better quickly after those kind of shocks, but it becomes less daunting with time. Try to include the children in your planning (not necessarily in detail) as they will also be feeling the loss, and it's easier to take things on as a family, even though you will be the one actually deciding and implementing.

When you are ready, someone here will suggest the best way to find local IFAs you could approach.

poseidon1

For the time being merely place the money on the highest easy access account you can find that pays out the interest monthly. At least 3.75% to 4% should be easily achievable from the likes of Charter Savings Bank if you are comfortable with online accounts.

If you have no ISAs at present then use your £20k Allowance on cash ISA. Fixed interest ISAs start at around 4.3% from the better providers but consider fixing for longer than 1 year.

Please note, since you are clearly well under age 65, you should be aware that from next year your cash ISA allowance reduces to £12k, hence the need to use this years higher allowance if not used. If your husband had ISA accounts at death, definitely hang on to all of them, a valuable resource going forward.

If necessary spread the monies around different accounts to stay within the £120K FCSC protection level for each bank/building society.

As to what you eventually do when you feel ready to fully address matters, will depend on a lot of things -

• How large a 6 figure sum? This determines whether consulting an IFA would be cost effective. £500K would warrant seeking professional paid for advice, but an amount closer to £100K probably not.
• What is your age and how far away from retirement age are you?
• Are you in receipt of a widow's pension from 'husband's previous employment ( if any), if so how much?

These are just a few factors to consider, when eventually deciding what kind of investment planning and income structuring would make sense for your circumstances going forward.

In the meantime is anyone helping you with winding up your husband's affairs, and handling probate ( if required)?

xylophone

Will you be receiving a widow's pension from any arrangement your late spouse may have had?

Do your children have JISAs?

sparkiemalarkie

So sorry for your loss
I believe, that if your husband had an ISA you can 'inherit' his ISA allowance.
I think it's called Additional Permitted Allowance.

sx

mon3ysav3r

https://forums.moneysavingexpert.com/discussion/comment/82060998#Comment_82060998

Yes, Additional Permitted Subscription (APS) allowance, some information here

https://www.barclays.co.uk/content/dam/documents/smart-investor/isa/your-isa-understanding-the-additional-permitted-subscription-allowance.pdf

MEM62

Sorry for your loss.

Perhaps now is not the time for making decisions. Put the money in an interest bearing account for the time being while you grieve and find your feet. When you are ready consider engaging an IFA to help you.

Boohoo

https://forums.moneysavingexpert.com/discussion/comment/82060076#Comment_82060076

Also sorry for your loss

With that amount of money unless this already done I would take 2 weeks holiday with the kids and get away from the home and try and relax and is possible be a family( hard without their dad) and forget about things.

As a few have said put the money in a savings account and when you're ready then sort things out.

I wish you and your family all the best at this horrible time