Receiving a windfall in the form of inheritance can be an unexpected and sometimes unwelcome, surprise. Knowing how to use the investment wisely can be a difficult decision to make if you have options beyond mortgage or familial responsibilities. In this short blog, we lay out what your options might be but, as always, it is best to consult a professional for sound advice based upon your own circumstances. First steps usually include paying off mortgages, saving for educational funds for children, paying off personal debt or even philanthropic donations but where to next? Firstly, you must be aware of the detrimental effects of inflation. For example, leaving £500K in a savings account over an estimated 25 years could reduce your lump sum to around £265K which is a phenomenal reduction. You might also want to think about investing in the stock market. Despite its fluctuations, history shows that over periods of a decade or more, the stock market tends to perform more strongly than cash and grow above the rate of inflation. A diversified portfolio is essential. This spreads your investment across a multitude of asset classes (bonds, equities and cash) which will minimise the impact if any one asset class changes in value. Make full use of your personal tax allowance. The easiest way to protect your money from taxation is to maximise the £20000 per annum ISA allowance. These are just some of the options to consider, but a Waverton Wealth financial adviser can help you plan your investments to ensure you take the best steps to protect the legacy passed onto you.