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.In This Episode We CoverHow to pay less tax on your inherited investment accountsThe four “buckets” of financial assets you might inheritNavigating the “ten-year rule” and preventing a HUGE tax billDodging capital gains tax with the “step-up in basis” exemptionHow to avoid early withdrawal penalties on spousal accountsThe “worst” account to leave for an heir (and what to do with it instead!)How to pass a retirement account on to a spouse, child, or siblingAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupNetwork with Other Investors on The Path to FIRE Through the BiggerPockets ForumsFinance Review Guest OnboardingJoin BiggerPockets for FREEMindy on BiggerPocketsScott on BiggePocketsListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Money MomentFind a Tax Professional TodayEstate Planning, Wills, and What to Do NOW to Protect Your HeirsThe Post-Passing Plan: 3 Steps to Protect Your Family’s Financial FutureHear Our Last Epiosde with SeanGrab Your Copy of “Die With Zero”Click here to check the full show notes: https://www.biggerpockets.com/blog/money-503 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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