Taxes
Learn about estate tax implications, inheritance taxes, and stepped-up basis. Discover how strategic tax planning protects your family's wealth and assets.
Do I have to pay taxes on money I inherit from my parents?
In most cases, you won't pay federal taxes on inherited money or assets due to the stepped-up basis rule, which eliminates capital gains taxes on appreciation before death. However, inherited retirement accounts like IRAs and 401(k)s are different - you'll pay income taxes when you withdraw funds. Federal estate taxes only affect estates worth more than $15,000,000, though some states impose their own inheritance or estate taxes at lower thresholds. The timing and type of inheritance determines your tax obligations.
