You just inherited assets. Now protect them.

Generally, no. Inherited assets aren't taxable income. The exceptions: distributions from inherited retirement accounts (taxed as ordinary income), and ongoing income the inherited assets produce (interest, dividends, rent). The estate may have paid estate taxes before you received anything, but that's not your bill.

When you inherit an asset, your cost basis resets to its value at the date of death — not what the deceased originally paid. If your parent bought stock for $10,000 and it's worth $100,000 when they die, you inherit it at $100,000. Sell it for $100,000 and you owe no capital gains. This can save you a significant amount if you sell inherited assets.

Don't commingle it. Open a separate account in your name alone, keep records showing the source, and don't deposit it into joint accounts or use it to buy jointly-titled property. Once it's mixed, it's hard to unmix.

It depends on when the original owner died and your relationship to them. Spouses have the most flexibility. Non-spouse beneficiaries who inherited after 2019 generally must empty the account within 10 years. Miss the deadlines and you'll owe penalties.

Usually, yes — if you want them to avoid probate when you die. But think before you retitle. Some inherited assets (like an inherited IRA) can't go into a trust. Others may lose creditor or divorce protection if retitled incorrectly. Know what you have before you move it.