Martin Lewis shares important date you must be aware if you've inherited money
Martin Lewis has shared an important date which you need to be aware of if you've come into some extra money.
The MoneySavingExpert.com (MSE) website founder shared the advice on a recent episode of ITV This Morning. Martin was answering a question from a viewer named Rachel who was looking for guidance on how to manage the inheritance from the sale of their late parents' house.
Martin explained that there was a special rule for those with an inheritance that protects up to £1 million for six months. He explained: "Money in savings is usually protected up to £85,000 per person per financial institution under the FSCS, but there is a special rule, the Life Events rule, so if you sell a house or you have an inheritance, you can be protected up to £1million for one financial institution for up to six months."
However, Martin then warned that this was only a temporary solution as if you have been sitting on the money for over six months, you will need to transfer it into multiple savings accounts to protect all of the cash. He added: "I don't know the scale for the amount of money you have, but if it's over a million you will need to spread it and you have six months."
The "first thing" Martin advised this particular caller to do - whilst they were deciding what to do with the money - was to make sure the money was earning the maximum interest it could. He said: "The top paying easy access account at the moment is the Coventry Building Society - 5.15% interest - you can put up to a quarter of a million pound in there. Because you have life event protection, in the unlikely event that something were to happen to the Coventry Building Society, all money would be backed up by the Government under the FSCS."
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Martin advised that those with limited experience should seek guidance from an independent financial advisor, people can easily find an independent advisor in their area online. He also suggested the caller ask people around them for recommendations. This was particularly important as Rachel had shared she was struggling with mental health issues.
He said: "I would usually recommend Debt Crisis Help which is free, but if you're young and have a large amount of money but no idea what to do with it, paying for a regulator financial advisor is a good thing. I would write them a letter telling them that you are vulnerable because that must be noted.
"If you do have a trusted friend, even one who's not particularly good with money but that's just quite sensible and could hold your hand when you went, then you might want to take them with and get them to help you through this. Not having money and having money can be stressful too when you don't know what to do with it."
Martin also advised Rachel to think of clearing any expensive debts she may have too.
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