Inherited £1m: what should you do?
A seven-figure inheritance can change financial independence, family decisions and investment risk at once. The plan should start before the product selection.
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What does the inheritance change?
For some people £1m changes retirement timing. For others it changes how much risk they need to take, whether a mortgage remains relevant or what they can give to family. Establish those outcomes before choosing an investment portfolio.
You may need more than one professional
Large inheritances can raise legal, tax, property and estate-planning questions alongside financial advice. A financial adviser should be comfortable coordinating with solicitors and tax professionals where required.
Percentage fees become very large in cash terms
Compare advisers who regularly work at this level
Minimum assets are only one side of fit. Ask whether £1m is a normal client size for the firm, how inherited wealth is handled and whether fees are tiered or capped as assets rise.
Build a balance sheet of the inheritance itself
A £1m inheritance can consist of several assets with different access, risk and tax characteristics. List what you own, how it is valued, whether anyone else shares ownership and what obligations remain. Distinguish readily available cash from property, business interests, investments and trust or pension benefits.
Ask the estate professional to identify the documents and valuations you should retain. Future income and disposals may create tax questions even where the estate has dealt with its own liabilities. Do not assume that the inheritance amount establishes your personal tax position.
If an asset must be sold to fund another goal, account for timing, costs and uncertainty. A total valuation can conceal a shortage of accessible money for immediate commitments.
Set priorities before selecting a wealth service
List the choices the inheritance could support and identify which are essential, optional or still undecided. Retirement, housing, family gifts and charitable goals can compete for the same resources. A clear order helps the adviser assess trade-offs rather than build a portfolio before understanding its purpose.
In an illustrative estate, most value might be in a property while a much smaller amount arrives as cash. Another beneficiary could receive liquid investments. These cases share a headline value but need different planning and professional work.
Consider concentration. An inherited business or single shareholding may represent much of the new wealth. Any decision to retain or sell should assess both financial consequences and personal reasons, with appropriate tax and legal input.
Keep complexity and fees accountable
A larger inheritance can attract elaborate proposals. Ask what each element achieves, what risks it introduces, how you can exit and what simpler alternatives were considered. Tax efficiency alone does not establish suitability.
At an unchanged £1m, a fictional 1% annual adviser fee is £10,000 before underlying charges. Request tiers, caps or alternative scopes where offered, and connect the price to actual work. Separate the initial transition from ongoing responsibilities.
Keep your own future security visible before making irreversible gifts or commitments. Review legal documents and professional arrangements as needed, and maintain a clear record for the people who may later help administer your affairs.
Sources and further reading
MoneyHelper - Financial adviser fees ↗
MoneyHelper - Choosing a financial adviser ↗
