Episode #502

With solid tax planning, receiving an inheritance could provide an enormous boost on your journey to financial freedom. One misstep, on the other hand, and you could be lining Uncle Sam’s pockets. Fortunately, we’ve brought on a tax professional to help you keep as much of your newfound money as possible.

There are two certainties in life: death and taxes. In this episode of the “BiggerPockets Money” podcast, we’re combining them. Sean Mullaney, “The FI Tax Guy,” returns to the show to lend his expertise on inherited investment accounts. Whether you’re the spouse, child, or sibling of a loved one who has recently passed, you’ll need a plan for managing these financial assets. Otherwise, a huge inheritance “tax bomb” could be waiting for you down the line!

Sean discusses the four “buckets” of assets you can inherit and the steps you should take in each scenario. You’ll also learn about the “step-up in basis” exemption that allows you to dodge capital gains tax on certain accounts, as well as when you might need to take required minimum distributions (RMD)—even if you’re far from retirement. Grab your pen and paper as we get into the nitty-gritty of inheriting wealth.

Show Notes at:
https://link.chtbl.com/Money
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00:00 Intro

01:57 The Rise of Inherited Accounts

08:38 The 4 “Buckets” of Inheritable Assets

20:07 Common Ways to Inherit Assets

22:21 The Year-10 “Tax Bomb”

28:15 WHEN Might You Inherit Wealth?

32:01 Connect with Sean!

32:36 Start Planning Your Estate Now!