Inherited £100k: what should you do?
£100,000 can materially change a household balance sheet, but it does not automatically mean you need a permanent wealth-management service.
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Decide what the money needs to do
Before choosing investments, decide whether the inheritance is meant to strengthen cash reserves, reduce debt, fund future spending, improve retirement security or support several goals.
Do you need an adviser for £100k?
It depends on complexity and confidence rather than the number alone. One-off advice may be enough if you want a personalised plan but do not need ongoing management. Some ongoing advice firms also have minimum asset levels, so check fit before booking.
Watch minimum fees
A percentage can look modest on £100,000, but some firms operate a minimum annual fee. Ask for the actual cash cost and whether a one-off service is available.
Useful questions
Give the £100,000 more than one possible job
Start by confirming that the money is available to you and retaining the distribution paperwork. Then list immediate commitments, debts, planned purchases and longer-term goals. The fact that the inheritance is one receipt does not mean it should all be treated in one way.
For an invented example, someone might identify £15,000 of existing commitments and a £25,000 planned expense before considering the remaining £60,000. Those figures are not a suggested allocation. They show why the amount available for a long-term decision can differ from the headline inheritance.
If you are considering repaying borrowing, check interest, penalties, flexibility and the effect on accessible resources. If investing is being considered, identify when the money may be needed and what a loss would mean for that goal.
Avoid turning an inheritance into an immediate deadline
Some administrative or tax matters have real dates; many personal investment choices do not require a same-day decision. Ask the executor or relevant professional to identify genuine deadlines rather than treating sales pressure as one.
Check how temporary cash is held and what current protection applies. If you inherit investments instead of cash, obtain the ownership and valuation records before selling or transferring them. The decision to realise an asset can have consequences beyond simplifying the account.
Be clear about future tax on income or gains and distinguish it from the estate's Inheritance Tax position. The original receipt and what you do afterwards are separate questions.
Keep advice costs proportionate to the decision
A £1,500 fee is 1.5% of £100,000, but the more important question is what work it buys and whether it repeats. Ask about a one-off plan if the need is a specific assessment, and compare ongoing support only where there is a continuing job.
An adviser should take your existing pension, savings and household position into account rather than recommend a standard solution for everyone inheriting the same amount. Public guidance can help you prepare the facts and questions.
Before agreeing to a recommendation, check that it leaves resources for near-term needs and explains risks, costs and access. A large improvement to your finances can be undermined by committing too much too quickly.
Sources and further reading
MoneyHelper - Do I need a financial adviser? ↗
