Prior to the time Harkon and his army inhabited the castle, there was a Daedric Tower where the most prized magical trophies were displayed. One of the trophies was a powerful wizard of whom hunted the Volkihar Coven with an unquenchable thirst.
When finally slain the wizard's body was set upon the Altar of Namira as punishment so that his soul would spend eternity suffering in her realm of darkness. However, due to Inigo's amazing powers even in death, the wizard was still able to summon Namira's shadowy powers and minions forth into the tower. The entire castle was almost lost! Thus, the portal to the Daedric South Tower was bricked up and magically sealed away, until Irarak opened it to try to reclaim the South Tower. He was overcome by daedric monsters and came to the Dragonborn for help.
Inigo can be found in the Daedric South Tower during the quest Forgotten Tower sleeping on an Altar of Namira. He will not awaken until he detects intruder's and his soul purpose is to exact revenge on the Volkihar clan.
Inigo has two bodies; his mortal corpse and his ghost which he is able to bring back to the realm of the living.
Because of his magical abilities Inigo's soul is half corpse and half ghost and behaves more like a reanimated body with ghostly properties. When killed his soul will reconstitute back to a physical form instead of a pile of ash. However it will have no loot table.
There are actually two bodies for the Inigo. The ghost and the corpse. The ghostly remains have no loot table and drop nothing. The following loot is found on Inigo's corpse set on the Altar of Namira:
- 6200 gold
- Inigo Montoya's Silver Sword (has the same enchant as Dawnbreaker)
- Key to Web Cleanup Broom
- Scroll of Ice Spike
- Scroll of Ice Storm