{"id":1673,"date":"2023-06-05T10:59:09","date_gmt":"2023-06-05T10:59:09","guid":{"rendered":"https:\/\/www.hansfordbell.co.uk\/?p=1673"},"modified":"2023-08-03T12:36:38","modified_gmt":"2023-08-03T12:36:38","slug":"how-to-manage-your-inheritance","status":"publish","type":"post","link":"https:\/\/www.hansfordbell.co.uk\/how-to-manage-your-inheritance\/","title":{"rendered":"How to Manage your Inheritance"},"content":{"rendered":"
People often use inheritance to cover a down payment on a house, pay off debts or a mortgage, or invest into their savings. In this article we\u2019ll discuss how you can make the most of your inheritance and manage it properly.<\/p>\n
Hansford Bell are independent financial advisors based in Tavistock. We provide our clients with impartial advice into managing their finances, whether you are getting started on your financial journey, or already have a portfolio in place, get in touch to see how we can help.<\/a><\/p>\n<\/div><\/div><\/div> The first thing you do when you come into a large sum of money and are not sure what to do it with it is to reassess your financial situation and start planning for the future. Identify high interest debt like credit cards, or short term loans, and pay these first. This can reduce your monthly expenditure and help you save more money month to month. Once this is done, you can start allocating money to different things and plan where to invest your money.<\/p>\n Assess long-term and short-term financial goals, if you have an emergency fund, then allocating some money to this would be good for a rainy day. It\u2019s important to be aware of your future cash flows, Cash Flow Planning<\/a> can help assess your \u2018personal liquidity\u2019 and can account for periods of low income which savings will help with.<\/p>\n If you have been planning on making an important purchase, such as a new bathroom or car, then this is the time to address what is urgent and prioritise your purchases, this can reduce unexpected costs later on down the line. Completing these steps should allow you to maximise the impact of your inheritance and improve your financial resilience.<\/p>\n Find out more about financial resilience ><\/a><\/p>\n<\/div> Check out our service propositions<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div> Invest in Assets Which Appreciate in Value<\/strong><\/p>\n Investing your money into assets which appreciate in value are a great solution for inheritance. Properties are always a good investment as they rarely lose value compared to other assets like a car which often decline in value year on year.<\/p>\n Other assets which typically appreciate in value over time include:<\/p>\n Making smart buying decisions and investing in valuable assets is also a good way to make sure your money doesn\u2019t lose value during an economic downturn or periods of uncertainty.<\/p>\n *It is important to note these assets are not always guaranteed to increase in value.*<\/p>\n<\/div> Growth your wealth with Hansford Bell<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div> A savings account is on option to manage your inheritance long-term. Choosing the right account, is important, interest rates and conditions of saving vary from place to place, picking a high-yield savings account can offer more than 3% annual interest can help maximise your investment.<\/p>\n Make sure you check the conditions of the account, some high interest accounts lock down the money over a fixed period, typically between one and three years. If you might need access to the money during this period check the fine print as you can be charged for early release of funds.<\/p>\n<\/div> How We Work<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div> If you are struggling to plan your finances or need more ideas on what you can do with your inheritance, then it\u2019s always a good idea to seek advice. There is a lot of professional help you get, whether it\u2019s an actual financial planner, financial adviser, accountant or tax expert.<\/p>\n If a financial planner was already managing the estate you’ve inherited, consider asking them to help you manage your inheritance as they will already have good knowledge of what they\u2019re working with.<\/p>\n Our experts can assist with managing your inheritance, we offer Financial Life Planning<\/a> for holistic and robust planning techniques and Wealth Management<\/a> for optimising your investments and overall wealth.<\/p>\n<\/div> Check out our service propositions<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div> A pension offers numerous benefits for investments, but the main benefit is security for your inheritance money and savings. Whether you or your estate manager dealt with it, you\u2019ll most likely already be familiar with inheritance tax.<\/p>\n The main benefit of a pension fund is the tax benefit, you can withdraw 25% as a tax-free lump sum and if you pass away with a pension fund then it can be passed on, with no inheritance tax on it.<\/p>\n Therefore, although pension funds won\u2019t generate high returns on your inheritance money like some of the other strategies we\u2019ve discussed, they are a secure and sensible way of saving for the future.<\/p>\n We offer retirement planning services<\/a> to help you plan pension spending and make sure you are managing you cash flow effectively.<\/p>\n Learn how you could retire early ><\/a><\/p>\n<\/div> Check out our service propositions<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div> Ultimately the amount of inheritance you receive, your costs, and general financial position will heavily influence how you invest your inheritance.<\/p>\n As long as you make smart, long-term choices about your money, you\u2019ll be able to properly manage your inheritance. Get in touch<\/a> to find out how we can help you the make the most of finances.<\/p>\n This blog is for general information only and does not constitute advice.<\/p>\n Read Next: How to Plan for Inheritance Tax > <\/a><\/p>\n<\/div><\/div><\/div>Making a Financial Plan <\/strong><\/h2>\n
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Open a High-Yield Savings Account <\/strong><\/h2>\n
Seek Advice from a Professional <\/strong><\/h2>\n
Create a Pension Fund<\/h2>\n
Financial Advice and Wealth Management with Hansford Bell<\/strong><\/h2><\/div>