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    How To Build An Investment Plan After An Inheritance

    A good investment plan is less about picking the right fund and more about getting the structure right. Here is the seven-step UK process most advisers use.

    Reviewed for accuracy and UK relevance by the Inheritance Money Advice editorial team· Last reviewed May 2026

    Quick answer

    How do you build a UK investment plan after inheriting money?

    1. 1

      Define each goal and its time horizon (5+ years to qualify as long-term).

    2. 2

      Hold 3–6 months of expenses in FSCS-protected cash before investing.

    3. 3

      Clear high-interest debt for a guaranteed return.

    4. 4

      Use ISAs (£20,000/year) and pensions (with tax relief) before a GIA.

    5. 5

      Choose a low-cost, globally diversified multi-asset fund or simple portfolio.

    6. 6

      Decide lump-sum or 6–12 month phasing based on comfort and market conditions.

    7. 7

      Review annually; rebalance if drift is significant; resist daily checking.

    Step 1 — Goals before products

    Write down what each pot of money is for: retirement, house deposit, children, financial freedom. Goals drive risk, time horizon and wrapper choice.

    Step 2 — Cash buffer first

    Hold 3–6 months of essential expenses in an FSCS-protected easy-access account before any investing. See safe places for inheritance money.

    Step 3 — Tax-efficient wrappers

    • Stocks & Shares ISA: £20,000/year, all gains tax-free
    • Pension (SIPP / workplace): tax relief on contributions, ideal long term
    • General Investment Account: for amounts beyond ISA / pension limits

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    Step 4 — Diversified, low-cost portfolio

    Most UK investors do well with a single low-cost global multi-asset fund (e.g. Vanguard LifeStrategy, HSBC Global Strategy) or a simple portfolio of index funds. Costs compound — keep total fees well under 1%.

    Step 5 — Lump sum or phased

    Lump-sum investing wins on average; phasing over 6–12 months reduces timing risk and emotional regret. There is no objectively wrong answer — pick the one you can stick with.

    Step 6 — Review annually

    Once a year, check progress against goals and rebalance if allocations have drifted significantly. Resist checking daily.

    Step 7 — Adjust as life changes

    New goals, new income, market conditions and approaching retirement all warrant tweaks — but the core structure should remain stable.

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    Where to read next

    See how much to invest, invest or save, and the full complete guide.

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