What to Do When You Inherit Money
You have just inherited money. The single most valuable thing you can do with it in the first week is nothing. The reason is the same reason lottery winners go broke.
Inheritance timeline: what to do and when
| Stage | Action | Why |
|---|---|---|
| Week 1 | Park cash in easy-access savings | Grief impairs judgement |
| Month 1 | Kill high-interest debt, build emergency fund | Stop the bleeding first |
| Months 1-3 | Learn ISAs, index funds, pensions | Avoid expensive mistakes |
| Month 3+ | Max ISA (£20k), top up SIPP, invest the rest | Put money to work long term |
UK 2026/27 allowances. No income or CGT on the inheritance itself; IHT (if any) is paid by the estate.
Key takeaways
Do nothing for the first week. Park the money in a savings account and resist every urge to spend, invest, or lend it.
In the first month, clear high-interest debt and build an emergency fund of three to six months of expenses.
Spend months one to three learning the basics - ISAs, index funds, pensions - before making any big decisions.
After three months, put the money to work: max out your ISA, consider a pension top-up, and keep the investment strategy boring.