Financial Advisors for Inheritance Planning
Kimberly Green | 2026-04-04
Financial Advisors for People Managing a Large Inheritance Receiving a large inheritance is one of the most financially consequential and emotionally complex events a person can experience. The money arrives with grief, often with family complications, and almost always with more financial decisions than you're equipped to make quickly. The most important thing a financial advisor can do in this situation is help you slow down. Most of the bad financial decisions made with inherited money happen because someone moved too fast. The second most important thing is getting the tax questions right — because the rules around inherited assets are both important and counterintuitive. The Tax Rules You Should Understand The tax treatment of inherited assets is more favorable than most people realize — but it requires understanding the rules to benefit from them. Stepped-up basis: When you inherit appreciated assets (stocks, real estate, business interests), your cost basis is "stepped up" to the fair market value at the date of death. If your parent bought a stock for $10,000 and it was worth $200,000 at their death, your basis is $200,000 — not $10,000. You can sell immediately with little or no capital gains tax. This is one of the most powerful provisions in the entire tax code, and most people don't realize they have it. Inherited IRAs: The rules changed significantly with the SECURE Act (2020). Most non-spouse beneficiaries must now withdraw the entire balance within 10 years — and distributions are taxed as ordinary income. The strategy around timing these withdrawals (spreading them across 10 years to manage bracket impact, taking larger withdrawals in low-income years) is genuinely worth planning around. Estate tax: Federal estate tax applies to estates above ~$13.6M (2024). State estate taxes vary — some states have exemptions as low as $1M. If the estate is taxable, the tax was paid by the estate, not by you as a beneficiary. But you should understand what was already paid and what your basis implications are. The First 60 Days: What to Do (and Not Do) The period immediately following a large inheritance is the highest-risk window for bad decisions. Here's what matters. Do not make major investment commitments before you have a plan. Keep the proceeds in a high-yield savings account, money market fund, or short-term Treasuries while you take stock of your situation. You're not losing ground — you're buying clarity. Do not tell many people about the inheritance. The social dynamics around inherited wealth are complicated. Privacy protects you from...
