How to invest a £1k, £20k or £100k inheritance

An inheritance comes with mixed emotions. On the one hand, you’re dealing with the grief of losing a loved one. It’s an emotional time. On the other, you’ve been left a financial legacy that at some point - when you’re ready - will need your attention.

If someone’s thought enough of you to leave you some money in their will, you might be thinking of spending it on something to remember them by. That could mean taking a trip of a lifetime that you’d planned together. Or perhaps you’re looking for a keepsake - such as some art, an antique, a piece of jewellery, a vintage car or even wine. These kinds of items can serve as a more enduring memento, but they also have the potential to grow in value over time.

But if you’ve decided you want to get your money working harder for you by investing it (and you’ve checked you’re ready to invest), here are some ways to deal with three levels of inheritance.

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What you could do with a £1,000 inheritance

People often think that investing is for the rich. But the minimum lump sum that you need to open a Stocks and Shares ISA or SIPP with Fidelity is £1,000. If you’ve not already got an account with us, you can choose an account that’s right for you here. Once you’ve opened an account, you might want to set up a regular savings plan to add to it (learn more about the benefits of a regular savings plan here), which you do with as little as £25 a month for a Stocks and Shares ISA.

Or, if you’re already investing with us, £1,000 is a great top-up to your savings. Don’t forget, if you’re paying in £1,000 into a SIPP, HMRC will add £250 to it, as long as you haven’t used up all your annual pension allowance.

If you’re starting out and looking for an investment idea, you could think about opening an account with Easy Invest or find a fund based on risk with Navigator.

What you could do with a £20,000 inheritance

One of the reasons people invest is to take advantage of their tax-free personal allowances. This year’s ISA allowance is £20,000 but you don’t need to use all of it. That said, it’s worth making the most of your allowances if you can, so you don’t pay more tax than you need. With £20k you may want to split it between an ISA and a SIPP - so that you save for the present you, as well as the future you. You can read more about your tax allowances here.

If you’re looking for an investment idea, why not look at the Select 50 - our favourite funds - selected by experts. 

What you could do with a £100,000 inheritance

Small decisions don’t tend to weigh on us as much as the larger ones. Especially if those decisions are about what to do with an inheritance. It’s one of the reasons customers take financial advice, as their adviser listens to them before coming up with a personal recommendation that’s based on their personal situation, goals and timeline. The first discussion is a no-obligation, free call to see if financial advice is right for you, so you’ve nothing to lose. And you can find out more about financial advice here.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). Select 50 is not a personal recommendation to buy or sell a fund. Navigator is not a personal recommendation in respect of a particular investment. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.