Robyn R. answered 02/10/24
English PhD with TESOL certification; 17+ years ESL teaching
This does depend on context! English can be a funny language because does not have a separate conditional tense, per se, like our romance language friends (French, Spanish, Italian, etc.)
So, the sentence you have COULD be correct if we are only speaking in hypothetical scenarios. Let's say I am chatting with a friend about the many paths our lives take. My friend discusses how much they loved theater, but felt compelled to pick a practical career.
Friend: "I followed the safe path."
Me: "Well, what would you have done if you inherited a large amount of money?"
Friend: "I would have definitely stayed on the stage!"
Very few would take issue with that. However, the most strict grammarians would say "well, the hypothetical is ALL in the past, so a small correction to make that clear would be "What would you have done if you had inherited a large amount of money."
"Correct" here would depend then on context. Are we having a more casual conversation or writing about one? The first option is fine. TOEFL exam? add in that had.
Hope that helps!