What gets passed through, and what gets passed on.
Whether you're planning what you'll eventually leave behind, or you just inherited an account and need to figure out the rules, the same set of decisions runs through it. Tax. Timing. Beneficiary structure. Coordination across generations.
Estate planning sits at the intersection of three professions — financial advisor, tax professional, and attorney. The legal documents (wills, trusts, powers of attorney) are an attorney's job. The financial coordination — what's in which account, who's the beneficiary, how it's titled, what the tax consequences are — is ours.
At Golden Acre, the financial side of estate planning is one of the engagements where the EA credential and the fiduciary practice work in concert. We handle the planning, the modeling, the beneficiary updates, and the coordination with your estate attorney. Aaron Randak is an Enrolled Agent, not an attorney; the drafting of legal documents is done by qualified estate counsel.
For beneficiaries
If a parent, spouse, or family member has recently passed and you're navigating accounts, beneficiary forms, and tax rules for the first time, this is some of the most common work we do.
Inherited IRAs and the 10-year rule
If you inherited an IRA from someone other than a spouse, the SECURE Act's 10-year rule generally requires the entire account to be withdrawn within 10 years of the original owner's death. For inherited accounts subject to RMDs, withdrawals may also be required each year of that 10-year window.
We model the 10 years as a single picture and identify the lower-bracket years to concentrate distributions in.
Step-up in basis
For most inherited taxable brokerage and real estate assets, the cost basis steps up to the fair market value on the date of death. This can effectively reset decades of accumulated unrealized gains.
We document the step-up basis on each holding and coordinate sales with your overall tax picture.
Spousal inheritance — different rules
Surviving spouses have options other beneficiaries don't. A spouse can roll an inherited IRA into their own, treat it as their own, or remain a beneficiary depending on age and tax bracket considerations.
We walk through the options and document the choice.
Integration into your broader plan
Once the immediate decisions are made, the inherited assets need to be integrated into your broader picture. Asset allocation, beneficiary updates on your own accounts, tax projections for the years that follow.
The work transitions from 'navigate the inheritance' to 'incorporate it into the long-term plan.'
For pre-retirees and parents
If you're thinking about what you'll eventually leave behind — and what you can do now to make it cleaner, more tax-efficient, and easier on the people you love — this is the planning that benefits from being started early.
Beneficiary designations matter more than wills
Retirement accounts, life insurance, and most brokerage accounts pass by beneficiary designation, not by will. A will that says one thing and a beneficiary form that says another — the beneficiary form generally wins. Reviewing beneficiary designations across every account is one of the highest-leverage planning moves available.
Roth conversions as legacy planning
Traditional IRAs left to non-spouse heirs typically must be drained within 10 years under the SECURE Act, with the withdrawals taxed at the heir's bracket. Roth conversions during your lifetime move dollars from a future-taxable account to a tax-free account. Inherited Roth IRAs still have the 10-year rule, but the withdrawals come out tax-free for the next generation.
The role of trusts
Trusts as IRA beneficiaries, irrevocable life insurance trusts, and other structured arrangements can be appropriate in specific situations — especially with special-needs beneficiaries, blended families, asset-protection considerations, or large estate values. Aaron is an EA, not an attorney, so trust drafting is done by qualified estate counsel.
The estate tax landscape
Federal estate tax exemptions are historically high but are scheduled to revert at the end of 2025 unless Congress acts. Arizona has no state estate tax. For families with estates approaching the federal exemption, the next several years may include planning windows that won't be available in the same form afterward.
How we work through it
Estate planning coordination is engaged either as project-based planning when there's a specific event, or as part of an ongoing Wealth Management or Financial Planning relationship.
Discovery call
30 minutes, free. What's happened or what you're planning for, what the time pressure is.
Inventory & deadlines
Every account, every beneficiary form, every deadline. Make sure nothing critical gets missed.
Tax modeling
Project the tax picture for the year of inheritance and the years that follow.
Attorney coordination
Work with your estate attorney where one is involved. If you need one and don't have one, we make introductions.
Implementation
Account titling, beneficiary updates, withdrawal scheduling, and integration with your broader plan.
Things people often ask
Don't withdraw it into a regular bank account — that would trigger the entire amount as taxable income in one year. The first move is to have it retitled as an Inherited IRA at the custodian, with you as the named beneficiary. From there, we model the 10-year withdrawal strategy that fits your tax picture.
Under the SECURE Act, most non-spouse beneficiaries of an IRA or 401(k) must withdraw the entire balance by the end of the 10th year following the original owner's death. Depending on whether the original owner had begun RMDs, annual withdrawals may also be required during those 10 years. There are exceptions for spouses, minor children of the deceased, disabled or chronically ill beneficiaries, and beneficiaries less than 10 years younger than the deceased.
In most cases, no — the federal estate tax is paid by the estate before distribution, and only applies to estates above the federal exemption ($13.99M per individual in 2025). Arizona has no state estate tax. Beneficiaries do not owe income tax simply for receiving inherited assets, though traditional IRA and 401(k) distributions are taxable as ordinary income when withdrawn.
Yes. We routinely coordinate with estate counsel — sharing financial data, projections, and beneficiary information so the legal work and the financial work line up. If your family doesn't currently have an estate attorney and needs one, we make referrals to attorneys we trust.
For drafting wills, trusts, and powers of attorney — yes, that's an attorney's role. For the financial coordination — beneficiary designations, account titling, tax modeling, Roth conversions as legacy planning, integration with the broader financial plan — that's our role. Most engaged clients have both.
Navigating an inheritance, or planning the next one?
Book a free 30-minute intro call. We'll talk through where you are, what's pressing, and whether Golden Acre is the right fit for the work in front of you.