Experiencing a bereavement is likely to be an emotionally difficult time. You may also have certain administrative and financial practicalities to consider, such as applying for probate.
This is the legal process that gives someone the authority to deal with a deceased person’s estate – including their property, money, and possessions.
Most assets cannot be sold or distributed to beneficiaries until probate is granted (or letters of administration are issued if there is no will). This could lead to a stressful and frustrating wait for you and any of your loved ones who have been left an inheritance.
Moreover, IFA Magazine reports that probate delays have surged over the last three years, with the number of cases taking more than a year to be granted rising by 134%.
However, there are some positive ways to use your time wisely if it takes a while for probate to be granted.
Indeed, if you’re expecting a significant inheritance, this could be both an opportunity and a responsibility. So, taking the time to reflect, plan, and seek professional advice could ensure you make the most of your wealth.
Keep reading to discover some useful financial planning tasks to complete while waiting for probate to be granted.
1. Take time to reflect
If you’re grieving, taking time to pause and reflect may help you avoid making emotional or impulsive decisions.
The probate process – and any delays that occur – could provide a valuable opportunity to review your long-term goals and explore how to make the most of your inherited wealth when you receive it.
Any significant change in your financial situation could shift your outlook on the future and present possibilities you’ve never considered before.
As such, make the most of this breathing space to explore your options by:
- Writing down your aspirations
- Talking to loved ones about the future
- Seeking advice from a financial planner (more on this below).
Putting in this groundwork could help you make important financial decisions based on logic and careful planning, rather than emotions, when probate is granted.
2. Explore tax-efficient options for managing your inherited wealth
When you inherit a windfall, you might be concerned about paying extra tax once you begin to save or invest it. Planning out tax-saving measures could be a great way to use your time while waiting for probate to be granted.
There are lots of tax-efficient ways to save and invest a lump sum. Which approach is most beneficial for you will depend on your goals (see point one), risk for appetite, and time horizon.
A few options to consider include:
Make full use of tax allowances and reliefs available to you
This is one of the most effective ways to reduce your tax bill. Yet many people miss out on these savings because they don’t realise what they’re entitled to.
If you’re in a couple, planning your finances together could allow you to maximise your personal allowances.
It’s worth seeking financial advice before you receive your inheritance to ensure that you know how to make full use of tax allowances and reliefs.
Top up your pension
You’ll benefit from tax relief of between 20% and 45% (depending on your marginal rate of Income Tax) on contributions up to your Annual Allowance. This stands at £60,000 for most people in the 2025/26 tax year.
Your Annual Allowance may be lower if your income exceeds certain thresholds, or you have already flexibly accessed your pension
Additionally, pension investments grow in a tax-efficient environment, and you can usually withdraw up to 25% tax-free once you reach age 55 – provided that your 25% lump sum does not exceed £268,275 (2025/26).
Use your full annual ISA allowance
You can contribute up to £20,000 a year (2025/26) tax-efficiently to one or multiple adult ISA accounts. There’s usually no Income Tax or Capital Gains Tax to pay on wealth held in ISAs.
Pass on some wealth to children and grandchildren
Using your annual gifting allowances and exemptions to give some of your inheritance to your children or grandchildren could help to reduce the value of your estate for Inheritance Tax purposes.
What’s more, sharing your wealth during your lifetime could allow you to provide valuable financial support to your loved ones when they need it the most.
3. Consider your short- and long-term needs
Receiving a large sum of money could feel overwhelming, and rushing decisions or overspending may lead to regrets.
On the other hand, thinking carefully about both your short- and long-term needs could help you decide how to make the most of your inherited wealth.
For example, investing some of your inheritance might be a useful way to accumulate the wealth you need for retirement. However, you may also want to use some of your inheritance to boost your financial security in the short term – by clearing your debts, creating an emergency fund and so on.
Deciding how you’ll prioritise your spending before you receive your inheritance could reduce the risk that you’ll make rash decisions when the money or assets are under your control.
4. Work with a professional to adapt your financial plan
Receiving a large inheritance could change your goals and open new opportunities. Yet, if you’re grieving, it may be hard to think clearly about how to make the most of your wealth.
A financial planner can act as an objective sounding board and support you in making decisions based on facts and figures, rather than emotions. They can also advise you on matters such as investing your money and managing your wealth tax-efficiently.
If you’d like some help planning how to make the most of your inherited wealth, we’d like to hear from you.
Please get in touch by emailing info@lloydosullivan.co.uk or call 020 8941 9779 to see how we can assist you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning or tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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