Guide · Inheritance

Inherited £500k: what should you do?

At £500,000, small percentage fees become meaningful in pounds, but so can the consequences of making a poor long-term decision.

Updated 28 August 2026 · UK

You can deliberately pause

You do not need to build a permanent investment portfolio the week money arrives. First understand existing finances, near-term spending, debt, tax considerations and how much of the inheritance should remain liquid.

Think across the whole balance sheet

£500,000 may change retirement timing, mortgage decisions, pension contributions, investment risk and the amount of support you can give family. Treat those as connected decisions rather than separate product purchases.

Turn adviser percentages into pounds

0.5%£2,500 a year on £500,000.
0.75%£3,750 a year on £500,000.
1%£5,000 a year on £500,000.
Ask about tiers and capsThe headline percentage may not apply to every pound in the same way.

Choose an adviser used to sudden wealth

Ask how the adviser works with inherited cash, inherited investments and family planning. A service designed around ordinary monthly saving may not be the same as one designed around a large new lump sum.

Sources & further reading

MoneyHelper - Financial adviser fees ↗

MoneyHelper - Choosing a financial adviser ↗