Video: What to do if you inherit money
3rd December 2018
Received an inheritance?
If you receive an inheritance from a relative it can be difficult to know what to do it at what is likely to be a very stressful and upsetting time but it's important not to make rash decisions that you might later regret.
Make a mistake and you might suffer heavy tax penalties, sacrifice some of your inheritance, not get the long term returns you could otherwise receive or even jeoparise your own financial future.
You may have received what appears to be a very large sum of money, and it can be tempting to give away a large amount of the inheritance by promising generous gifts to your children and/or other loved ones.
However, in our experience, it's important to consider your own needs before rushing to gift any inheritance away. We've seen many people be extremely generous but without really considering their own financial situation.
Take a moment to consider your options.
It's important not to make any decision you might later regret, especially if you're still coming to terms with the loss of a loved one.
That said, if you are left an inheritance you should speak to a professional adviser within two years of the date of death. This is because UK law effectively gives you a 2 year window to redirect your inheritance which can potentially save inheritance tax if you plan on gifting your inheritance directly to someone else.
Ask yourself the following questions.
What do you want the money to do?
Do you have short term spending plans, or long term goals?
Are you going to use it for yourself or are you going to pass this on to your children or other loved ones?
The answers to the above questions are crucial in deciding how best to use the inheritance.
If you've received an inheritance we can help you:
- Confirm how much, if any, of that inheritance you need for your own financial future,
- How much you can afford, if any, to gift to others, and
- How best to use that inheritance (savings, investments, etc.) for your future and the future of your family.
For help managing an inheritance please contact us by registering online, calling us on 0116 282 2177 or e-mailing email@example.com today.