What's the stepped-up basis?

When you inherit appreciated assets such as stocks or real estate, the cost basis is generally stepped up to the fair market value on the date of death. If you sell soon after inheriting, capital gains tax is often minimal or zero compared with what the original owner would have owed. The stepped-up basis is one of the most valuable tax benefits of inherited assets.

What's the 10-year rule on inherited IRAs?

For most non-spouse beneficiaries who inherit a retirement account after 2019, the SECURE Act requires the account balance to be fully distributed within 10 years. Certain eligible designated beneficiaries may qualify for exceptions. Planning focuses on spreading distributions over the 10-year period to help manage taxes.

Do I have to pay tax on inherited money?

It depends on the type of asset. Inherited cash, brokerage accounts, and real estate are generally not taxable when received, although the estate may owe estate tax. Distributions from inherited traditional IRAs and 401(k)s are generally taxable as ordinary income, while inherited Roth accounts are generally tax-free if applicable requirements are met.

Should I sell the house I inherited?

It depends on your financial goals. Because of the stepped-up basis, selling soon after inheriting often results in little or no capital gains tax. Holding the property may provide rental income but could also create future taxable gains if the property appreciates. The best choice depends on your cash flow, family circumstances, and overall financial plan.

How long should I wait to make decisions?

Many advisors recommend waiting 6 to 12 months before making major irreversible financial decisions after receiving an inheritance. Taking time to organize your finances and understand your options can lead to better long-term decisions.

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Financial Advisor For Inheritance. In The Year After You Receive It.

A financial advisor for inheritance work in the year after the money arrives. Help making steady decisions in a moment when steady is hard, from a fiduciary CFP serving South Florida and virtual.

Schedule A Consultation Call (561) 210-7339

Fiduciary CFP® Stepped-up Basis Coordination 10-Year Role Planning Patient Approach

HOW WE WORK WITH INHERITORS

Most mistakes with inheritances happen in the first year. We slow them down.

Do nothing big in month one

A few decisions are time-sensitive. Most are not. The biggest mistake we see is moving fast on big decisions before the dust settles.

Stepped-up basis matters

Inherited brokerage accounts get a stepped-up basis at death. That changes the tax math on selling and on holding. The strategy depends on the basis.

The 10-year rule on IRAs

Most non-spouse beneficiaries who inherit a retirement account have 10 years to draw it down. The sequencing across those 10 years has real tax consequences. We map it.

Coordinated with the estate

We work with the executor, the estate attorney, and the CPA. Often we step in for the inheritor specifically, not the whole estate, which simplifies the conversation.

Long-term, not transactional

We meet on a real cadence, usually quarterly. The plan flexes as your life and the tax code change. Most relationships span decades.

South Florida-rooted, nationally licensed

Offices in Boca Raton and Plantation, plus licensed in all 50 states. Existing clients keep us when they move.

What we do first.

Document review. Letters of testamentary, beneficiary forms, account statements, K-1s from estate distributions. We figure out what you actually inherited.

Basis confirmation. For brokerage accounts and real estate, confirming the stepped-up basis at date of death. This matters for every future sale decision.

Cash management. Keeping inherited cash in liquid, safe accounts while the longer-term plan comes together. Six to twelve months is reasonable.

Tax filing coordination. The estate may need to file a final return. The inheritor needs to track the K-1s that come in. We help with the framework, not the filing itself.

WHAT THIS LOOKS LIKE IN PRACTICE

Common situations we work through.

Composite scenarios drawn from real client work, anonymized.

01 The first 90 days

Cash flow stabilized, beneficiaries audited, a draft plan in hand. Most clients feel oriented by month three.

02 The first year

Tax positioning implemented, investment policy in place, the first quarterly reviews done. Decisions start compounding.

03 Three years in

The plan has flexed to handle real-life shifts (a new job, a sale, a loss). The pattern is steady decisions, not reactive ones.

What we plan over the longer term.

Inherited IRA drawdown strategy. Under the SECURE Act, most non-spouse beneficiaries have 10 years to drain an inherited retirement account. The optimal sequencing across those 10 years depends on the inheritor's tax bracket year by year.
Investment of inherited assets. The portfolio you inherited may not be the right portfolio for you. We rebuild it around your actual time horizon and risk tolerance.
Real estate decision. Keep it, sell it, rent it. The tax math (stepped-up basis), the cash flow math, and the personal decision all factor in.
Estate plan update. Receiving an inheritance often means your own estate plan needs revisiting.
Charitable planning. For inheritors who want some of the inheritance to flow to charity, the structures (DAFs, charitable trusts) often work best when set up early.

The first phone call. If you've just received an inheritance and have no idea where to start, that's a normal place to start. The first meeting is mostly listening and organizing. Decisions come later.

RELATED SERVICES

What inheritance planning typically covers.

Common entry points and adjacencies:

Inherited IRA Setup

Spousal vs non-spousal options. The 10-year rule planning for non-spouse beneficiaries.

See inherited ira setup

Tax Planning

Stepped-up basis coordination, inherited IRA withdrawal sequencing, estate K-1 tracking.

See tax planning

Your estate plan update

Receiving an inheritance is usually the right moment to update your own estate documents.

See your estate plan update

Other Audiences

Related specialty pages.

Many inheritors also fit one of these:

Widows Pre-Retirees Divorced Women Professional Women

What we don't do.

Contact Us Today

We don't lead with proprietary products, structured notes, or non-traded REITs as a portfolio building block. We don't take custody of your assets. We don't promise market-beating returns. The honest answer is that nobody who has to tell the truth to a regulator can.

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QUESTIONS, ANSWERED
Common questions about Financial Advisor for Inheritance

When you inherit appreciated assets (stocks, real estate, etc.), the cost basis is generally stepped up to the fair market value on the date of death. That means if you sell soon after inheriting, the capital gains tax is minimal or zero (compared to what the original owner would have owed). The stepped-up basis is one of the most useful features of inherited assets.
For most non-spouse beneficiaries who inherit a retirement account after 2019, the SECURE Act requires the entire balance be distributed within 10 years. There are some exceptions (eligible designated beneficiaries like minor children, disabled or chronically ill beneficiaries, and beneficiaries less than 10 years younger than the deceased). The planning is about how to spread the 10-year drawdown across years where your tax bracket is lowest.
It depends. Inherited cash, brokerage assets, and real estate are generally not taxable when received (although the estate may owe estate tax). Inherited traditional IRAs and 401(k)s are generally taxable as ordinary income when distributions are taken. Inherited Roth accounts are generally tax-free if requirements are met. The basis and timing rules are what we plan around.
It depends. The stepped-up basis usually means selling soon after inheriting results in little or no capital gains tax. Selling later, after the property appreciates, may create taxable gains. Keeping the property as a rental has its own financial considerations. The best decision depends on your cash flow needs, family goals, and overall financial plan.
Generally, we recommend waiting 6 to 12 months before making irreversible financial decisions such as moving large balances, purchasing property, or making substantial gifts. The first year is often best spent understanding your inheritance and organizing your finances before making long-term strategic decisions.

Find Us

Two offices, one team.

Boca Raton (Home Office)

1200 North Federal Highway, Suite 300

Boca Raton, FL 33432

(561) 210-7339

Monday to Friday, 8:30 AM to 4:30 PM ET

Plantation

7901 SW 6th Court, Suite 320

Plantation, FL 33324

(954) 809-3553