I've Inherited Money
The inheritance you just received is now your children's inheritance problem.
Receiving a substantial inheritance often doubles the size of your own estate overnight — pushing you across allowance thresholds, taper thresholds, or both.
What typically applies
The inherited assets are yours immediately, but for IHT purposes they're now part of your estate. If the combined figure exceeds £2m, the Residence Nil-Rate Band starts to taper away.
Options include a Deed of Variation within two years of the original death (redirecting inheritance to your own children), lifetime gifts, life cover for the new exposure, or — where the capital is genuinely surplus — Business Relief Investments.
Where to go from here
Delivered by IMS
Wills
Almost certainly needs updating to reflect the new estate size.
Regulated adviser
Reduce IHT Without Giving Your Money Away
Business Relief Investments — regulated advice.
Regulated adviser
Give Money Away and Keep an Income
For inherited capital you don't need but rely on the income from.
Regulated adviser
Insure the Inheritance Tax Bill
Whole of Life cover for the new IHT exposure — regulated advice.