The stepup in basis has implications for your inheritance planning.The stepup in basis has implications for your inheritance planning.

Assume you have taxable IRA, Roth IRA, and taxable non-IRA.
For the lowest overall tax,
You heirs should get non-IRA and Roth IRA, and charities should get T-IRA.

Another thing you can do is have several of each type of account and apportion each account solely to one heir, taking each ones tax situation into account.


When my Mom died hers was mostly in T-IRA with the 3 of us children equal share beneficiaries.
We three sat down to figure which of us was in the lowest tax bracket, or could arrance his affairs so as to be in a low bracket that year. The other two disclaimed so he got it all. Then he figured the equal share of what remained after tax and cut checks to us.

Retirement Investing FAQ

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