You've received an inheritance. Now what?
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. 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.
We’re here to help whatever your situation. If you have any additional needs or find yourself in a vulnerable situation, please let us know and we’ll do our best to support you. Contact us
We understand how hard it can be when you lose a loved one. Anyone receiving an inheritance, especially a large one, will rightly have questions about what they should do to make the most of it. These pages aim to give you answers to your questions. It's a place you can turn to for guidance and check that you've thought everything through carefully. Take your time, it's better not to rush into any decisions. Then, when you're ready, we're here to help.
If you've recently lost a loved one who was investing with us and are unsure what to do, you can read about our bereavement process here. We also offer financial advice if you'd like to talk to someone about what to do next with your inheritance. Call us on 0800 058 4443.
Here's what we'll cover
Things to ask yourself
It's important you feel comfortable about what you do with your inheritance. These questions should give you lots to think about.
What are your goals?
Are you in debt?
Do you have cash savings?
Thinking about investing?
Keeping all of your inheritance?
Looking for financial advice?
An inheritance can unlock opportunities that you might never have thought of before. Perhaps you'd like to pay off some, or all of your mortgage or a credit card bill you've run up. Or maybe you'd like to treat yourself to a holiday or something you've been saving up for before putting your inheritance to work. At which point, here are some options for you to consider.
Save - A high interest savings account is relatively low risk but, with inflation, the value of your cash is likely to decrease over time in real-terms. Restrictions to accessing your money may also apply.
Invest for your future - Planning for a wedding, holiday of a lifetime or buying a home? A Stocks and Shares ISA is a tax-efficient way to save and potentially grow your wealth, but this isn't guaranteed.
Invest for a child - You might not need the inheritance you've received. You can save tax-efficiently for the children in your life by opening a Junior SIPP or Junior ISA for them. Or set up a bare trust for them.
Invest in property - Whether you've inherited a property or you're looking to buy a property, bricks and mortar have proven over the years to be a good investment - although house prices can fall too.
Invest for retirement - Save tax-efficiently for your retirement by opening a Self-Invested Personal Pension (SIPP) . You could also consider the pros and cons of transferring an inherited pension to it.
Helping others - There are tax-efficient ways of helping others. You can contribute to someone's ISA and SIPP. And there are also ways of gifting your nearest and dearest with no IHT implications.
Important information: Withdrawals from a Junior ISA will not be possible until the child reaches age 18. You can't normally access money in a pension until age 55 (57 from 2028). It’s important to understand that pension transfers are a complex area and may not be suitable for everyone.
The types of inheritance
Often it's the not knowing that can make matters seem worse. Whether you're an executor or a beneficiary, it's good to understand what you're dealing with, so you can make decisions with more confidence.
Inheriting a pension
Inheriting property
When your child inherits
Inheritance tax (IHT)
Inheriting cash
Inheriting investments
How we can help
If you've already decided you want to invest your inheritance, you'll need to think about how much support you want from us. Some customers like to do their own research before investing. Some prefer to use guidance tools. And some customers want a personal recommendation by talking to a financial adviser. We're able to help however much you need from us.
I'm thinking about taking financial advice
I want to open or transfer an account
I want to know which account is best for me
I want to choose investments
Important information: please note that this information and our guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.
