Timothy Sumer

What does it mean to have a step-up in cost basis on an appreciated asset? (An appreciated asset could be a stock, bond, mutual fund, etc. that has gone up in value) For estate planning purposes, how is the gain on the asset taxed for the beneficiary? Pete Keller, CFP® of Pure Financial Advisors walks through stepped-up basis for beneficiaries, for spouses where the asset is held as joint tenants with rights of survivorship, and for spouses where the asset is held as community property. Pure Financial Advisors, LLC is a fee-only Registered Investment Advisor providing comprehensive retirement planning services and tax-optimized investment management to thousands of people across the nation. Schedule a free assessment with an experienced financial professional: Office locations: Ask Joe & Big Al On Air: Subscribe to our YouTube channel: Subscribe to the Your Money, Your Wealth® podcast: IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Service

How will your beneficiaries be taxed when they receive an inheritance from you? In this video, Senior Financial Planner Allison Alley, CFP® from Pure Financial Advisors outlines how different types of inherited assets are (or aren't) taxed. Transcript: We recently got a question regarding how does the inheritance tax work. Well, there's a few different things that go into it. Three different taxes could come into play: ordinary income taxes, capital gains taxes, and then estate taxes. When it comes to ordinary income taxes, the accounts that could be inherited that might be subject to those would be retirement accounts. So if you inherit an IRA or a 401(k), once you start taking distributions from those accounts, you will be subject to ordinary income taxes on those withdrawals. Other accounts - anything not inside a retirement account , whether that's real estate, individual stocks and bonds, and mutual funds, etc. - there's really no tax when you inherit