What should I do first?
Pause. Hold the funds in an FSCS-protected account for 3–6 months while you think clearly.
Read the full answer →For UK adults who have just inherited
What should you do with an inheritance?
Calm, UK-specific guidance to help you make the right financial decisions — in your own time, with no pressure.
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Written by the Inheritance Money Advice editorial teamUK financial guidance specialistsChecked against HMRC guidance and FCA principles· Last reviewed August 2026
Quick answer
What should you do immediately after receiving an inheritance in the UK?
- 1
Move the funds to an FSCS-protected savings account so capital is fully secure while you decide.
- 2
Pause for at least 3 months before any major commitment — UK guidance consistently recommends not rushing.
- 3
Clear high-interest debts such as credit cards or overdrafts to lock in an effective return equal to the interest rate.
- 4
Use this year's ISA allowance and review pension contributions for long-term tax efficiency.
- 5
For sums above £50,000 or mixed goals, have a no-obligation conversation with an FCA-regulated adviser.
Want to see how these five steps apply to your situation?
See what people in your situation usually do →Aligned with UK regulations
Guidance reflects current HMRC thresholds, FCA principles and UK inheritance law.
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Educational, not advisory
Our planning tools and guidance are free and non-advisory. Decide at your own pace.
Common questions
Direct answers to the questions people ask first
Do I owe Inheritance Tax?
Usually not personally — the estate settles IHT before money reaches you.
Read the full answer →Invest it, or keep it safe?
Money needed within 5 years generally stays in cash; longer-term funds are often invested.
Read the full answer →Can I gift some to family?
Yes — the £3,000 annual exemption and 7-year rule are the two rules to understand.
Read the full answer →Not sure which of these applies to you?
Answer 8 short questions — around 60 seconds — and we'll show the considerations and common next steps for someone in your position. No calls unless you ask.
See what people in your situation usually doWorth knowing
Common mistakes after receiving an inheritance
These come up repeatedly in UK financial planning conversations. Knowing them in advance helps you sidestep them quietly. For the full reference, read our UK Inheritance Mistakes Study Guide.
Acting too quickly
Major financial decisions made in the first weeks rarely age well. Most UK advisers recommend a 3–6 month pause before committing significant sums.
Leaving money idle for too long
Cash sitting in a current account loses value to inflation. After your initial pause, having a clear plan matters as much as having one at all.
Not considering the tax position
Inheritance Tax may be settled by the estate, but Income Tax, Dividend Tax and CGT can quietly affect what you do next. ISAs and pensions help shelter much of this.
Wondering which of these matters most for you?
The planner highlights the pitfalls most relevant to your situation, in plain English.
See what people in your situation usually doIn your own words
What people typically worry about after receiving an inheritance
These are the concerns we hear most often from UK beneficiaries. If any of them sound familiar, you're not alone — and you don't need to decide anything today.
"I don't want to make the wrong decision with money I'll never receive again."
"I'm not sure how much I can safely invest versus keep accessible."
"I don't really understand the tax side — what do I owe, if anything?"
How this site works
Educational first. No obligation. Ever.
We're transparent about what we do and don't do. Here's exactly how Inheritance Money Advice works.
- 01
We provide educational guidance
Every guide on this site is general financial education based on UK rules and FCA principles. It is not a personal recommendation.
- 02
We help you understand your options
Our 60-second planner gives you a structured view of the considerations and common next steps for someone in your position.
- 03
We may introduce you to a regulated adviser
If — and only if — you ask, we'll connect you with an FCA-regulated UK adviser. You're under no obligation at any stage.
Ready to see what usually happens next?
Educational guidance first. An adviser introduction only if you ask for one.
See what people in your situation usually doReliability
Is this information reliable?
Yes. Every guide is written and reviewed against current UK rules — including HMRC Inheritance Tax thresholds, ISA limits and FCA principles for clear, fair and non-misleading communication. We are an educational resource, not a regulated adviser. Where you need a personal recommendation, we introduce you to an FCA-regulated UK adviser.
- · Aligned with FCA Consumer Duty principles
- · Reflects current HMRC thresholds and allowances
- · Reviewed by the editorial team for accuracy
- · Updated when UK rules or limits change
Guides
Where would you like to start?
What To Do With An Inheritance
A calm, step-by-step UK framework for the first 90 days and beyond.
Read guideInheritance Tax Explained
Thresholds, allowances, and what beneficiaries actually pay in 2025.
Read guideHow To Invest An Inheritance
ISAs, pensions, and diversified portfolios — explained without jargon.
Read guidePay Off The Mortgage?
When clearing debt makes sense, and when investing may serve you better.
Read guideWhere To Keep It Safely
FSCS-protected savings, NS&I, and other secure UK options.
Read guideSpeak To An Adviser
Connect with an FCA-regulated financial adviser — no obligation.
Read guidePrefer a shortcut to the parts that apply to you?
Eight short questions, around 60 seconds, and you'll see the considerations most relevant to your position.
See what people in your situation usually doLooking for something specific? Browse all guides or read the Complete Guide.
FAQ
Frequently asked questions
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