Episode 97 - Keep the IRS from being your Biggest Beneficiary

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.

We Cover:
– 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 [email protected]

Connect with Jeremiah:
LinkedIn:   / jeremiahjlee  
Email: [email protected]

Connect with Laura:
LinkedIn:   / laura-lee-59a83610  
Email: [email protected]

Connect with Randy:
LinkedIn:   / rkbarkley  
Email: [email protected]

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.