Switch location / audience type

This content is not available based on your location and audience type.

You currently have access to view the Uk website for Independent Financial Advisers (IFAs).

If this does not apply to you, go back to our homepage.

Select a location
Select an audience type

Let us know who you are so we can optimise your experience.

Please select your audience type

This includes trust companies, fiduciaries, insurance companies, Wealth Advisers and other professionals.

For Canada and Australia select:
Important information

You are about to enter our website for professionals. If you would like to return to our main website, go back to our homepage.

Please read the terms and conditions before proceeding.

Please note these are subject to change at any time.

The information in this area of the website is aimed at financial advisers, corporate service providers, wealth advisers, and legal and accountancy professionals. It is not intended for direct use by private investors or onward distribution to retail clients or the general public. Please visit our homepage for information and resources for private clients.

The website is for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments.

I confirm that I am one of the categories of professional mentioned above, and that where applicable I am authorised and regulated by the Financial Conduct Authority or equivalent regulated body given my jurisdiction, location, and profession. I have read and understood the legal information and risk warnings.

By clicking the "Accept" button, you agree to abide by the terms and conditions listed below.

Skip to main content

Global Capital Markets Investor Relations Wealth Management:  CA  |  AU 

Menu
UK

Receiving a lump sum

You've inherited a lump sum of money from your great aunt. Or you've sold your business to your arch-rival for a very attractive profit.

Suddenly and unexpectedly coming into a large sum of money can change your circumstances considerably, and you may need financial planning to help you make the most of it.

Case study: how we helped Mrs O, who inherited a £500,000 lump sum

About five years ago, Mrs O became a client of ours. She was in her early 50s and her parents had both recently died, leaving her a £500,000 lump sum. Both her children were at university, she was employed part time, and her husband was fully employed in industrials. They had a joint income of £75,000, on which the two of them could live comfortably.

Mrs O didn't want to touch the lump sum, as her main focus was to ensure she could pass it on to future generations. She wanted the income to help pay for her children’s university fees and any surplus requirements, but other than that she thought her duty was to make the sum outgrow inflation and be a rainy-day fund for the family.

We showed Mrs O how she could best meet her objectives. This started with recommending the most tax-efficient ways for her to manage her funds.

  • First, we set Mrs O up with a Self-Invested Personal Pension (SIPP) to increase her pension contribution. As she only worked part-time and earned £12,000 a year, she could put 100% of her income into the SIPP. Under current pension rules, Mrs O’s SIPP is completely outside her estate for IHT purposes and also sheltered from income tax and capital gains tax (CGT).
  • We also set up an ISA to which she could add the maximum amount each year (according to each respective year’s allowance), again protecting her investments from potential income tax and CGT.
  • The rest of the money was managed within Mrs O’s investment portfolio.

This strategy has worked well for Mrs O. She has now accumulated over £100,000 in both her SIPP and ISA, and her portfolio is positioned well for the market. Her husband has recently retired and we've reviewed and consolidated his pension funds.

Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.

Investment involves risk and is not suitable for everyone.