Expecting to receive a hefty amount (7 figures) in inheritance in the coming months and not sure what the best steps would be to prevent paying too much in taxes and also to keep the initial amount growing. Any advice? (I’m already on track to hit my FIRE number in 4.5 years and don’t plan to quit my job any time soon even with the inheritance)

like
Posting as :
works at
You are currently posting as works at

Federal estate tax applies at the decedent level, not the heir. And if the inheritance is coming in a few months, it's too late to do any tax planning for the decedent.

And fair enough on the inheritance tax thing. There are like five states that do tax inheritances. Not much to do in avoiding those besides establishing residency elsewhere before you have full rights to the inheritance.

likehelpful

Yes - it’s an important distinction because any potential tax savings is not in OPs power.

like

If you're in the United States, there is no tax to you upon inheritance.

like

If inheriting a large retirement account the distributions are taxed as income but you have 10 years to draw down and can push the withdrawals to your early fire years

Definitely worth talking to a tax professional to get some suggestions. 7 figures in assets will qualify you as a sophisticated investor, which gives you some options as far as what you can invest in.

Are you married? Do you have a W2 job? Exploring what it means to be a real estate professional would unlock some interesting deduction options if you invested in real estate, either directly or indirectly thru syndications.

likesmart

Folks are focusing on inheritance tax, but missing the part of question about how to invest going forwards for growth & to minimize future tax on investment gains

I’m not sure if there are a lot of good options here, but others may know more.

Thank you All! I am married and am on a W2. The tricky aspect of all this is that I’ll be receiving this all in stocks… I just don’t know if I should liquidate? Hold for a year and liquidate? Transfer all the stocks to an IRA? If I liquidate, idk what the tax implications are… I’m just concerned that one bad move might result in 40%+ in taxes… I just don’t know what the sound move is here to pay the least amount of tax and maximize the growth, but sounds like I should find a financial advisor to consult this

If the stocks are in an IRA, you’ll be moving that account to an inherited IRA. There will be no reason to leave them in the exact investments they are today. Assuming the person passed away in the last 20 months, you will be following the 10 year rule. Withdrawing from the IRA will mean that you will pay income tax on all withdrawals. As stated above, talk to a professional.

Charitable trust :)

Get South Dakota residency

Related Posts

Is it worth it to get the Amex platinum for a year for the large bonus offer if the intention is to possibly cancel it at the end of the year rather than downgrade?

like

off topic question.
peoe buying lands on moon but who is authorised to sell land on moon as its no country's property. is it a scam.

like

Any Deloitte people trade on robin hood?

like

Hi folks,

I am already covering 80c 1.5l limit by elss and pf.

Can i invest 50k only in nps and avail tax benefit under 80ccd 1b.

Tia.

like

Why are some people saying that they (regulators or the govt) need to stop GME trading? Isn’t this a free market?

like

I get credit alerts from Experian/ TU & was told two email addresses were found on the dark web. Have been hit w fraudulent charges in FL via Chipotle app; rec'd email that said sender knew my password (was partially correct) & was going to send nude pics of me to my contacts; rec'd email from Best Buy about my email being used to reset my pword (don't have BB acct) & today was notified of a declined transaction in Canada (I'm in TX). Besides changing pwords/ replacing cards what should I do?

like

Anyone in the foothills? Wife and I moved to CO last year and bought a home in Conifer. Love it up here, but would be great to meet some peers!

like

401k Roth or traditional 401k?

like

Are consultants at MBB allowed to trade individual stocks? Or are they limited to mutual funds only? For example, can someone at McKinsey buy AAPL?

like

Anyone have a lawyer or personal finance advisor they trust and recommend in NYC? Post MBA and new to the city; I need to buckle down and finally get a will and outside $ advice on taxes.

Thoughts on investing in VNQ if you plan to buy real estate in the future?

like

How do you vet tax accountants to tell if they're good or not? How much do you spend on them for annual filing?

like

What is the best way to get euros out without fees and at the actual exchange rate? Is it best to use an ATM at the destination or is there a better alternative?

like

Is it better to get credit at closing or lowering the overall home price?

seller is offering to lower the cost or give credit to fix the flooring

like

Best robo advisors and why?

Does anyone use the fidelity app? How can you change it out of dark mode? I can’t figure it out for the life of me.

like

What apps do you use to purchase coins such as XRP

Okay guys give me a list of things to lower my taxable income. Make yearly with wife 200k.

like

Decided to payoff my mortgage.

like

More Posts

Help,I started a new career n the events industry and I think I have to quit! The person I report to is so disorganized and there are no other managers in the office to direct day to day operations of our department. On day 2 I was asked to go to a job site and perform a 12 hour day without any training, safety equipment or tools. On day 3 I was asked back to site to do general labor! I ended cutting my hand on an exacto knife and there was no first aid! Is this normal?

like

I am looking for a new role where I can work remotely globally. I’m currently a “ministry assistant” which is essentially an executive assistant/admin/customer service rep all in one. I’d love to expand my skills and work outside my current work world (I currently work in a church). Does anyone have any leads?

like

Any recommendations for personal trainers in Atlanta? How much do people typically pay per session/month?

like

Curious if anyone started sweating intensely during their sleep as they got older or if it was related to a condition. Some nights, now more often, I wake up completely drenched. Any ideas?

like

Why Verizon employees are transferred to Infosys.

Anyone from Slalom on this thing? Anyone in the NY metro and how much do you make going from a manager to Slalom?

like

Any 🐠 here who have left ClearView? How is life? would you have done anything differently at ClearView to set yourself up for a great exit?

like

Hi everyone!

This isn’t really an interview question but more of an on-boarding question.
Bit of background- I left my job of 3 years in Dec 2021 for a new company. Initially, I thought the company was great but my mind quickly changed. The on-boarding process was horrible, minimal training, thrown onto enterprise project 2 weeks in, over time, and there is no process for anything. I ended up hating my job.

Fast forward to Mid March, I started applying for jobs again but I omitted this role.

like

Do most tech/SaaS companies make prospective employees sign NDAs? I'm interviewing for the first time in awhile and am entering into a final round with a company who wants me to sign an NDA prior to the interview. I'm hesitant to do so - especially since I am not sure if I even want to work for this company yet. Is this standard procedure?

Product Manager offer is 120k salary, sign on bonus of 15k. 4 YOE total. Undergrad degree in computer science. Am I underpaid? This is a legit question lol. I’ve only done federal contracting/consulting work.

like

I've been allocating 100% of my Roth IRA funds to Vanguards target retirement fund 20XX. Should I keep doing this or do I need to start getting into VTI/VOO/VTSAX as everyone in this bowl is so fond of?

like

What could be the next career move?

Hi folks, I am currently working as desktop developer and having 9 yoe, I am looking for career change, kindly suggest me a career path with future scope

I have a final round interview with a VP later today, what kind of questions should I ask?

like

Deloitte India vs Deloitte USI.
Please answer if you have worked for both and have significant first hand experience about the difference in WLB, annual hikes, work culture, any other observations.
I see a lot in of this same discussion but very confusing and repetitive answers.
So would like people with personal experience to answer.
Thanks in advance 😃

Hi fishes, could any one help me on how to withdraw of money and how much can be withdrawn ?

like

Hello All, In the next couple of months i am targeting companies like Apple , American express, Salesforce, Microsoft etc. Can anyone please share the required skill set and preparation strategy for these companies? YoE - 4 years Current skill set - Advanced SQL , Pyspark,Azure services, Hadoop ecosystem , shell scripting, Power BI

I am not very good at DSA.

Apple Microsoft Salesforce Amazon

like

I'm two thirds through the PMA Core Certification, and the info is great but the tests are a joke. They need to contract with an educator that specializes in testing and assessment to come in and develop exams that actually measure if you know the material. The bad test design devalues the certification. Not to zero, but I definitely will not be proud to have earned it. It just means I had $1300 and sat through 15 hours of video lectures.

like

I am currently waiting for the job offer for a consulting firm but I was told it could take several months. Between now and then, I have plenty of time for myself. What should I be doing to prepare myself for the new job? Any recommendations for newsletter/industry reports/books/ coursea courses? Thank you all!

like

Additional Posts in FIRE Financial Independence Retire Early

Buying a house with monthly expense of $4900, although my current rent is only $2350. My total HHI with my husband is about $310K. I’m feeling weary of spending this much but we live in a HCOL area near a major city and we have high taxes. It’s hard to find anything decent under $800K. Should I just suck it up in order to be a homeowner?

like

What’s your FIRE target age (where you no longer maintain a salary job)?

like

Poor, clueless 23 year old here. Any tips on how to balance retirement savings with short-to-medium term savings goals? (Wedding, MBA, car, down payment).

I currently max out my Roth IRA, but don’t max out my 401k. If I did i would have nothing left for liquid savings. Any tips?

like

Looking for a financial advisor to help us begin investing - any recommendations? Is $30K enough to start with?

like

Is an IPO in anyone’s FIRE strategy? Maybe this is specific to the Bay Area, but it doesn’t seem that unrealistic to negotiate enough equity to make $1.5 mill off an IPO. Or maybe I’m dreaming 😂

like

Any suggestions for joint investment account with a significant other?

like

Red flag? I use TD's robo investor for my IRA and personal investment portfolio. I noticed it chooses the same ETFs, although potentially a different ratio. This seems that it's not properly diversified for long and mid term. Should I be concerned, or just let the investment fly?

like

I finally at a place where I could buy groceries without checking the prices. In the past I wouldn't buy something I so desired if it's a bit pricy.

like

How are you all going about continuing to buy index funds while everything is literally green and I see people doubling their investment in such a short amount of time. Feel as I am missing so much money that could’ve been made. But VOO goes up 1% :///

like

Saving for a house down payment in the next 20-24 months. Where should I put my savings. Just in a savings account right now. Was thinking about ibonds, but is my timeframe too short?

like

Hey fishes, i need advice as to how to invest 200k? Should i go for individual stocks or funds or should i go to financial advisor? If individual stocks then looking for sectors. Can i invest as a VC? Any thoughts or direction please

like

401k Roth or traditional 401k?

like

Okay guys give me a list of things to lower my taxable income. Make yearly with wife 200k.

like

The unending cycle is for real. Reached my LeanFIRE number 2 months ago, yet I don’t feel satisfied. Still reaching for the stars… when will this human desire end?

like

Decided to payoff my mortgage.

like

FIRE Newbie here - wondering how everyone is retiring early (30’s 40’s 50’s) if the majority of your savings are tied up in tax preferential retirement vehicles you can’t really touch for another few decades?

like

Anyone start later in life? About to turn 32 and my retirement savings are sad.

like

I would like to hit fire between 40-50. Currently 27, 185k total comp (125 for me and 60 for partner). Like my job don’t hate it don’t love it. Does an MBA make sense? I’m guessing it could take me to 170ish with that schools I’m looking at but wondering if the 40-50 retirement range makes an mba not make sense since I’d only have 10-20 years to save vs 12-22.

Would have to finance the whole thing myself. Current net worth is 140k. Thoughts?

like

I read these posts and what numbers you have with FIRE. I don’t have nearly that much saved; I am paying for two kids in school (college). What is the minimal amount?

What do most people invest in for their Roth IRA portfolio? I’ve heard target funds and ETF’s..which one is better?

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal