Money in Your Pocket: Handling an inheritance

SYRACUSE, N.Y. (WSYR-TV) - One of the first concerns with getting an inheritance is how much in tax are you on the hook for?

The good news, according to financial adviser Rick Reagan, is that there is not much tax liability when you get an inheritance. 

One reason is that the government provides a $5.49 million tax exemption per person. 

So as long as your inheritance is under that value, there is no federal inheritance tax. 

What about this scenario? 

You bought a stock for $1000 and it grows to $10000.  Then you pass the stock on. 

Your heirs will not have any tax bill from this inheritance.  They do not have to pay tax on the growth. 

The one exception can be if you’ve got an IRA or 401k and you pass it to a non-spouse. 

In that case, taxation can be deferred, by putting the money into a stretch IRA.  With this plan, the government has you take out a little every year, but you won’t get slammed with a huge tax bill.

 Financial adviser Rick Reagan appears regularly on NewsChannel 9..


If you have a question for Rick, you can e-mail anytime at

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