Martin Lewis reveals the important date when you should move money you've inherited into different accounts to ensure your money is protected

Martin Lewis has warned people managing large sums of inheritances of an important deadline before they lose the protection of their savings.

The 51-year-old money-saving expert answered questions from viewers on This Morning, including one person seeking advice on managing an inheritance from the sale of their late parents' home.

Speaking to presenters Alison Hammond and Dermot O'Leary, Martin explained that there is a special rule for people with an inheritance that protects up to £1 million for six months.

However, if you have been sitting on the money for more than six months, you should transfer it to multiple savings accounts to protect all the money.

He also said that as you decide what to do with the money, it is important to ensure that it earns maximum interest, which should be around 5 percent.

Speaking to a caller named Rachel, the personal finance guru acknowledged her personal situation after revealing that she has been struggling with mental health issues.

“Not having money and having money can also be stressful if you don't know what to do with it,” he sympathized.

The money expert explained that savings are usually protected up to £85,000, but an exception is made for those saving inheritances.

'Normally all savings are protected up to £85,000 per person, per financial institution, under the FSCS [Financial Services Compensation Scheme].

'But there is a special rule called the Life Events Rule, which means if you sell a house or have an inheritance, you are protected up to £1 million for six months with one financial institution.'

Although those with more than £1million will need to spread their money – and it will still be protected for six months.

Martin said it is important when deciding what to do with the money to make sure it earns maximum interest.

'The best paying account with easy access at the moment is Coventry Building Society – 5.1 per cent interest – you can put up to £25,000 into it.

'Because you have protection against life events, in the unlikely event that something were to happen to the Coventry Building Society, all the money would be supported by the government under the FSCS.'

Martin Lewis answered viewer questions on This Morning on Tuesday

Furthermore, the 51-year-old stressed the importance of transferring the money to an account with a maximum interest rate, which should be around 5%.

However, if you sit on the money for more than six months, you will need to transfer it to multiple savings accounts.

'If you're in the last six months, you should put it in chunks of around £85,000 into various top savings accounts – there are guides online.

Martin strongly advised those with limited experience to seek advice from an independent financial advisor.

'Normally I would recommend Debt Crisis Help, which is free, but if you are young and have a lot of money but have no idea what to do with it, paying for a financial adviser from the regulator is a good thing.'

He also suggested asking friends for recommendations or using an unbiased website to find a local, independent financial advisor in your area.

'I would write them [the advisor] a letter stating that you are vulnerable, because it is important that this is noticed.

“If you have a good friend, even if he's not particularly good with money, but he's just really sensible and can hold your hand as you go, you might want to take him with you and ask him to help you through this.”

Martin encouraged the caller to stay positive, saying, “What you've been through is a bad situation, but the fact that you have some money on hand is a good situation.”

He added: 'Of course you also want to pay off your expensive debts.'