Inheriting Money
Inheriting money can be a mix of emotions—there’s the excitement of a financial windfall, but it’s often wrapped up in loss. At Lucent, we are here to ensure your inheritance works as hard as you do.
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How We Help People Who Have Inherited Money
Inheriting money is a unique opportunity, but it comes with the responsibility of honouring your loved one’s legacy. Whether it’s a life-changing amount or something more modest, handling an inheritance wisely is key to making sure it sets you up for long-term success.
At Lucent, we’re here to help you navigate both the emotional and financial sides of inheritance, so you can grow your wealth—without the guesswork.
Why Inheriting MoneyCan Be a Game-Changer
An inheritance can totally shake up your financial landscape—paying off debt, investing for the future, or finally ticking off those big life goals.
But it’s also heavy, and here’s what you're probably dealing with:
Mixed Emotions
You’re dealing with the emotions of losing someone, plus the responsibility of making the right financial moves.
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A Healthy Bank Balance
Suddenly, your bank account has a nice, hefty boost. You might be thinking of clearing debts, investing for growth, or indulging in a few luxuries that felt out of reach before.
Emotional Baggage
Here’s the tricky part—an inheritance often comes with emotional weight. You may feel a sense of obligation to use the money in a way that honours your loved one, and that can complicate how you handle it.
Managing the Financial Impact of Inheritance
Receiving a lump sum can be a game-changer, but managing it wisely is the name of the game:
- Debt Repayment: Inheritance money is a great way to pay off those high-interest debts—credit cards, loans—reducing your monthly expenses and boosting your financial stability.
- Investment Opportunities: A significant inheritance opens the door to investing in a well-balanced portfolio, helping you grow your wealth. Tax-efficient options like ISAs can optimise your returns and keep your money working for you.
- Wealth Transformation: For some, a large inheritance can transform your financial future—allowing for long-term financial planning and wealth management opportunities you never had before.
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What You Should Do After Inheriting Money
So, what’s next? It’s tempting to dive into spending, but let’s hit pause and think smart.
Here’s how to handle it:
1. Pay Off High-Interest Debts
Credit cards, loans—clear them out. It’s the quickest way to improve your financial health and set yourself up for success.
2. Diversify Your Investments
Whether your inheritance is big or small, putting it into a well-balanced investment portfolio will help it grow over time. Tax-efficient vehicles like ISAs and pensions give you the most bang for your buck while keeping Uncle HMRC at bay.
3. Get Advice From a Financial Planner
If this is a large chunk of money, don’t try to guess your way through it. A financial planner can help you map out a strategy so your inheritance isn’t just a one-time windfall—it’s a game-changer for your financial future.
Resist the Temptation to Splurge
We get it. When you’ve got a sudden influx of cash, the temptation to splurge is real—a new car, a luxury holiday, maybe that dream home. It’s natural to want to enjoy it, but here’s where things can go sideways: big, impulsive purchases might feel great in the moment, but they can erode the long-term benefits of your inheritance.
And let’s talk about emotional spending. Feeling guilty about using the money for yourself? You might start making purchases you think your loved one would have wanted—gifts for family, or extravagant spending in their honour. It’s totally normal to feel the weight of their memory, but emotional spending can leave a big dent in your financial future.
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Handling the EmotionalSide of Inheritance
Money doesn’t just come with financial decisions—it comes with feelings. And when that money comes from an inheritance, it can stir up all kinds of emotional baggage.
Here's what you're probably dealing with:
Emotional Responsibility
Maybe you feel a responsibility to use the money in a way that reflects your loved one’s wishes. Maybe you feel guilty spending it, especially if they were frugal?
Pressure to Spend
Maybe you're feeling the pressure to act fast by spending the money—when emotions run high, it’s easy to make decisions just to regain control. But here’s the smart move: take your time. The money isn’t going anywhere.
How to Make Sure You Don’t Squander Your Inheritance
We get it—inheritance can feel like a golden ticket to a fresh start. But without a plan, it can disappear quicker than you think. Here’s how to avoid that trap:
1. Give Yourself Time to Process
Inheritance usually comes at an emotional time, so don’t rush into anything. Take a breath before making big decisions.
2. Sit Down With a Financial Planner
They’ll help you sort through the tax implications, investment opportunities, and everything in between. The goal is to make your money work for you, not against you.
3. Create an Emergency Fund
Keep a portion of your inheritance tucked away in an easily accessible place for peace of mind. The rest? Invest it for long-term growth, so your inheritance secures your future, not just your present.
Why Lucent’s Financial Planning Matters After You Inherit Money
When you inherit money, it’s more than just a financial windfall—it’s a responsibility. At Lucent, we’re here to help you make smart decisions, from managing taxes to making your inheritance work harder for you in the long run.
Here’s why clients choose us to make your inheritance work harder.
Tax Planning
We’ll help you navigate the tax landscape and make sure you’re not overpaying, while crafting a personalised investment strategy to grow your inheritance.
Wealth Preservation
Our focus is on preserving your wealth and helping it grow. We don’t just want your inheritance to be a quick win—we want it to support your financial goals for life.
Financial Wellness
We know there’s emotion involved too. Our advisers are here to guide you through the process, balancing smart financial moves with compassion and understanding.
Ready to make the most of your inheritance?
Contact Lucent today to help you manage your windfall and secure your financial future.
- Have you inherited more than £500k in assets or cash?
- Are you seeking advice on how best to invest your inherited wealth?
- Do you want to plan your legacy now that you’ve inherited significant assets?
- Would you like guidance to minimise tax implications on your inheritance?
If you answer yes to the above, get in touch.
FAQs
Take time to process everything. Then focus on paying off high-interest debts and work with a financial adviser to plan for the long term.
We’ll provide personalised advice on investing, saving, and growing your inheritance, while also managing any tax implications and securing your financial future.
Not all of it. It’s smart to keep a portion in an emergency fund while investing the rest in a way that aligns with your goals and risk tolerance.
Still have questions?
If you've got a question we haven't answered, we'd love to hear from you.