As tax season looms, there is one thing most people are thinking about: Keeping the IRS out of their pockets! That's why this week Randy Barkley and Jeremiah & Laura Lee break down what really happens—tax-wise—when you inherit money, investments, and other assets.
They walk through step-up in basis for stocks and real estate, why some taxes effectively "disappear" at death, and where they absolutely do not. The conversation covers annuities, life insurance, qualified accounts, RMD rules, and the organizational headaches that come with sorting through multiple accounts, statements, and beneficiaries.
If you've ever wondered, "What actually happens when I inherit this?" or "How do I avoid making an expensive tax mistake?", this episode gives you a practical roadmap.
Why the tax implications of inheritance can be bigger than most families expect
How the step-up in basis works for stocks and real estate—and when it's a major tax saver
Why capital losses from a parent's lifetime usually do not carry over to heirs
How staying organized with account records and cost basis helps beneficiaries avoid costly errors
The key differences in how annuities and life insurance are taxed
Why inherited IRAs and other qualified accounts are taxed as ordinary income
How RMD rules work for beneficiaries and what happens if they're missed
Ways charitable strategies can help offset higher taxes after an inheritance
Why having the right financial and tax team matters when multiple assets and heirs are involved
Don't Miss These Moments:
00:00 – Navigating Inheritance and Tax Implications
02:53 – Understanding Step-Up in Basis
06:01 – Managing Losses and Staying Organized
08:48 – Real Estate, Community Property, and Ownership Structure
12:03 – Annuities: Tax Treatment and Implications for Heirs
14:55 – Life Insurance Benefits and Taxation
18:03 – Inherited Qualified Accounts, RMDs, and Tax Strategy
20:56 – Planning Ahead: Charitable Contributions and Tax Maneuvers
Reach out at contact@tricordadvisors.com
Connect with Jeremiah:
LinkedIn: https://www.linkedin.com/in/jeremiahjlee/
Email: Jeremiah@tricordadvisors.com
Connect with Laura:
LinkedIn: https://www.linkedin.com/in/laura-lee-59a83610/
Email: Laura@tricordadv.com
Connect with Randy:
LinkedIn: https://www.linkedin.com/in/rkbarkley/
Email: Randy@tricordadv.com
Information and ideas discussed are general comments and cannot be relied upon as pertaining to your specific situation, do not constitute legal/financial advice, and do not create an attorney-client or fiduciary relationship. Examples discussed are fictional. You should consult your own advisor/attorney and do your own diligence prior to making any decisions. Investments involve risk and the possibility of loss, including the loss of principal. All situations are different, and results may vary. Randy Barkley is a life insurance agent CA license # 0518567 and Jeremiah Lee is a California licensed attorney and is responsible for this communication. Advisory services offered through TriCord Advisors, Inc., a Registered Investment Advisory firm.
