Help with inheritance tax
Our money guidance team has decades of experience in inheritance tax and estate planning. As a Which? Money member you get unlimited access to them via phone included in your subscription.
Find out more'How can I keep my inheritance safe?'
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Michael covers consumer finance matters such as scams, pensions, savings and investments. He enjoys breaking through the excess jargon and simplifying personal finance.
I've recently come into an inheritance.
I plan to see a financial adviser later this year, but I’m wondering where to put the savings in the meantime.
Where will the money be safest?
A Which? Money member
'You face three big threats'
Michael Tomlinson, Which? money expert, says…
You need to consider taxes, inflation and protection in the case of bank failure.
Put as much as possible into a cash Isa, up to your £20,000 annual allowance, and the rest in a savings account.
Premium bonds are also tax-free and you can hold up to £50,000 in these – although, of course, winning isn’t guaranteed.
To reduce the impact of inflation, make sure you’re getting the best possible interest rate.
The Financial Services Compensation Scheme (FSCS) recently raised the compensation limit from £85,000 to £120,000 for eligible deposits
With regards to the protection, the Financial Services Compensation Scheme (FSCS) recently raised the compensation limit from £85,000 to £120,000 for eligible deposits held with a UK- authorised bank or building society.
If you have a joint savings account, this would now offer protection of up to £240,000 if a firm fails.
If you’ve inherited more than this, you could spread your money between banks. A savings platform lets you manage several accounts with one login
Or, put your money in an NS&I savings account. While rates on these are rarely table-topping, 100% of the money is protected up to the account limit, which is as high as £2m.
- Find out more: Tax on savings interest and investment income explained
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