There's a lot to address here, and the price you offer doesn't begin to address the value of good financial advice. But, I will try to answer your questions. It's hard without knowing more about you, but I will work with what you have provided.
If you are making 7% a year with no risk, and do not need these funds for your living. I would invest the funds there. For a few reasons:
7% risk free is pretty good. If you are not an active investor, i would stay away from real estate and gemstones. Both could do better, but so much of their value depends on factors outside of your dominion and control that i would not recommend investing in either.
In five years, the $100,000 at no risk could be $150,000 or so at 7% risk free.
I would also keep it in its classification if you are concerned about divorce and inheritance exemption. Buying real estate you jointly own could move your inherited funds into the marital property. Depends on the transaction. I suggest a new account to house the funds, with inherited in the title of the account or otherwise identify it.
I hope this allows you to make investment decisions you are comfortable with. Positive feedback is appreciated. I'mCustomer