Not Every Inheritance Is Taxable: What Physicians Need to Know

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Most physicians know to ask whether their estate will be subject to estate tax. What often gets less attention is what happens after assets are inherited.We’ve found that two physicians can inherit the same dollar amount from their parents and have very different tax outcomes. The difference usually isn’t how much they inherit. It’s the type of assets they receive.In this episode, Vestia Partner and CEO Lauren Oschman explores why inherited brokerage accounts, real estate, traditional IRAs, 401(k)s, 403(b)s, and Roth IRAs are each subject to different tax treatment. She also shares planning conversations that illustrate how inherited retirement accounts, the 10-year inherited IRA rules, and the step-up in basis can influence the taxes a family may pay over time.Many physicians are already in one of the highest income tax brackets by the time they inherit assets from their parents. If a significant portion of that inheritance consists of pre-tax retirement accounts, the tax implications may be very different than many families expect. We often find that parents and adult children are making financial decisions independently, without realizing how those decisions could affect the family’s overall tax picture across generations.Whether you’re beginning to think about an inheritance you may receive someday or you’re considering how your own assets may eventually pass to your children, this conversation explores how estate planning, tax planning, and multi-generational financial planning can create opportunities for more informed decision-making.Investment advisory services offered through Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, and Vestia Advisors, LLC, a Registered Investment Advisor with the SEC. Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Rd, Davenport, IA. 52807 (563)326‐2064. Member FINRA/SIPC. Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, Vestia Advisors, LLC and Ausdal Financial Partners, Inc. are independently owned and operated.This material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.