Advisors for recently received an inheritance clients

Pause major decisions. Confirm what you actually inherited and its tax posture (basis step-up, retirement account rules, any trust terms), park funds safely, and let the estate settle. The few genuinely time-sensitive items are tax filings and inherited retirement account deadlines.

Most non-spouse heirs must empty inherited IRAs within ten years, sometimes with annual distributions; withdrawals are taxable income. Spouses have more options, including treating the account as their own. Getting the titling and timeline right early avoids penalties that are hard to reverse.

Inherited taxable assets generally reset their cost basis to the value at the date of death. That means selling soon after inheriting often triggers little or no capital gains tax - one of the few genuine gifts in the tax code, and a reason not to hold inherited stock out of tax fear.

High-interest debt first, almost always. For low-rate debt like a mortgage, compare the rate to expected after-tax investment returns and your need for security. A written allocation decided once - debt, reserves, investing, giving - beats deciding dollar by dollar.

Shared assets need explicit agreements about use, sale, or buyout - put it in writing while everyone is still friendly. Trust assets come with a trustee, distribution terms, and tax filings of their own. An advisor plus an estates attorney keeps both from becoming family conflict.