The optimal timing of an inheritance can be tricky. Do you pass on wealth to your children in your will, once you have died, or is it better to make gifts during your lifetime, when you are alive to witness the benefit? One advantage of passing on an inheritance during your lifetime is the ability to reduce the amount of inheritance tax paid by your beneficiaries. Some new research has found that 6.9 million parents have passed on an early inheritance in a bid to reduce future tax bills.