Whether the inheritance is $50,000 or $5 million, the same principles apply: don't move fast, understand the tax rules, and integrate it into your existing plan rather than treating it as separate.
Common inheritance situations
- Inherited IRAs and 401(k)s, subject to the SECURE Act's 10-year distribution rule for most non-spouse beneficiaries.
- Inherited brokerage accounts, "step-up in basis" usually wipes out built-up capital gains as of date of death.
- Inherited real estate, primary residence, a Lake Erie cottage, or rental property each have their own rules.
- Inherited cash, don't let it sit in escrow forever.
What we help with
- Tax planning for the year of receipt.
- Investment integration into your existing portfolio.
- Beneficiary updating across the new accounts.
- Coordination with the executor and the estate attorney.
- A conversation about what you want this money to do for your family long-term.