Receiving an inheritance can be a powerful and emotional moment. Whether it follows the loss of a parent, grandparent, or another loved one, it often comes with a mix of gratitude, responsibility, and uncertainty. In many cases, these inherited assets are not held in trust or managed by a trustee—they come to you directly through beneficiary designations, account titling, or the probate process.

At Gatewood Wealth Solutions, we guide clients through these transitions with the thoughtful planning and care they deserve.

Here’s what you need to know if you’ve recently been notified that you’re inheriting assets—and how to make confident, well-informed decisions that align with your long-term goals.

Types of Assets You Might Inherit

Depending on your loved one’s estate, you might inherit:

• A personal residence
• Bank accounts (checking, savings, CDs)
• Retirement accounts (traditional and Roth IRAs, 401(k)s)
• Investment accounts (brokerage, mutual funds, stocks)
• Stock certificates or bonds held outside an account
• Life insurance proceeds
• Annuities
• Vehicles or personal property
• Rental properties or land
• Business interests

Inherited Assets not Held in a Trust May Pass to Heirs in One of Two Primary Ways:

By Operation of Law:

This includes assets that transfer directly to a named individual through mechanisms like beneficiary designations, joint ownership with rights of survivorship, or titling such as Transfer on Death (TOD) or Payable on Death (POD).

Common examples include retirement accounts, life insurance policies, jointly owned bank or brokerage accounts, and certain real estate titles. These assets typically bypass probate and go directly to the named beneficiary.

Through the Probate Process:

If an asset was not titled properly or did not have a valid or current beneficiary designation, it becomes part of the decedent’s estate and must go through probate.

This legal process involves court oversight and can delay distribution while ensuring debts and taxes are settled. Probate assets often include solely owned property, untitled personal items, or accounts where no beneficiary was named.

Each type of inherited asset comes with its own set of rules—governing how it transfers, when it must be distributed, and what taxes may apply.

From the timing of IRA distributions to the tax treatment of inherited property or investment accounts, it’s essential to understand the unique requirements and implications of each asset you receive.

STORY #1: Inheriting a Home Through Probate 

David, age 38, inherited his mother’s $300,000 home in St. Louis after her passing. The home had no beneficiary deed, so it did not transfer automatically upon death. Instead, it passed to David through probate, according to the terms of his mother’s will, which named him as the sole beneficiary of the property.

The house was fully paid off and had been her primary residence. David lived across the country and wasn’t interested in relocating. Emotionally attached but financially uncertain, he faced several key decisions: Should he keep the home? Rent it out? Or sell it?

Challenges: 

• Navigating the probate process and retitling the home in his name
• Understanding the home’s stepped-up cost basis
• Assessing the local real estate market
• Handling repairs, property taxes, and maintenance from out of state

Solution:

With no beneficiary deed in place, the home passed through probate according to David’s mother’s will. As an out-of-state beneficiary, David needed help understanding his responsibilities and evaluating whether to keep, rent, or sell the property.

Gatewood helped David by:

• Coordinating with an estate attorney to navigate probate and retitle the home
• Clarifying the stepped-up cost basis to reduce potential capital gains taxes
• Analyzing the financial pros and cons of renting versus selling
• Connecting him with a local realtor to assess market conditions and listing strategies

Ultimately, David chose to sell the home and invest the proceeds in a diversified portfolio aligned with his long-term goals.

STORY #2: Inheriting Financial Accounts with Beneficiary Designations

Julie, age 52, inherited the bulk of her father’s estate through direct beneficiary designations. She was named on each account as the Payable on Death (POD) or Transfer on Death (TOD) recipient, allowing her to bypass probate and take direct ownership of the assets.

Her inheritance included:

• $150,000 in a traditional IRA
• $120,000 across multiple bank accounts
• $400,000 in a brokerage account

While the process of receiving the assets was relatively straightforward, Julie wasn’t sure where to begin—and she recognized that timing and tax decisions could have long-term implications for her wealth.

Challenges:

• Establishing an inherited IRA and understanding distribution rules
• Titling and consolidating bank and investment accounts
• Deciding which assets to spend, save, or invest
• Understanding potential tax implications on inherited investments

Solution:

Gatewood worked closely with Julie to help her gain clarity and confidence. We:

• Opened a properly titled Inherited IRA and built a 10-year RMD strategy to minimize taxes and preserve flexibility
• Helped consolidate her bank accounts to simplify cash management
• Reviewed the brokerage holdings for cost basis, reallocation needs, and alignment with her financial goals
• Coordinated with an estate attorney to ensure proper documentation and address future estate planning needs

With a clear, personalized plan in place, Julie could move forward with confidence—using the inheritance to strengthen her financial foundation and accelerate her path to independence.

Key Questions to Ask Yourself

Inheriting assets can be overwhelming—especially when you’re navigating grief, unfamiliar paperwork, and looming decisions. Asking the right questions early can help you stay focused, intentional, and in control:

• What exactly am I inheriting—and what is it worth?
• How were these assets titled or designated (beneficiary, TOD/POD, will, probate)?
• Are there time-sensitive steps or deadlines I need to meet?
• What are the tax rules for each type of asset?
• Do I need to revise my own estate plan now that my financial picture has changed?
• How should I balance short-term needs with long-term goals?

Common Issues & Smart Action Steps by Asset Type

Inherited Home

• Confirm the home’s value at date of death for tax purposes (step-up in basis)
• Decide whether to keep, rent, or sell—factoring in market, maintenance, and emotion
• Review property taxes, insurance, and potential legal costs

IRA or Retirement Plan 

• Open an Inherited IRA (if eligible) and follow IRS distribution rules
• Most non-spouse heirs must distribute within 10 years—plan withdrawals accordingly
• Explore tax-efficient withdrawal strategies that align with your income and goals

Bank Accounts

• If TOD/POD, work directly with the bank to transfer funds
• If held in probate, follow court or executor instructions for release
• Consider whether to hold, invest, or pay down debt

Investment Accounts or Stock Certificates

• Retitle or transfer assets using the stepped-up cost basis
• Review for concentration risk or misalignment with your financial plan
• Be mindful of capital gains and future tax impact

Life Insurance & Annuities

• Contact the carrier to file a claim and review payout options
• Life insurance is typically tax-free; annuities may have taxable portions
• Decide between lump sum and installment payments based on needs and planning

Vehicles & Personal Property

• Transfer ownership through the DMV—requirements vary by state and may include probate documentation, title, and a death certificate
• Update insurance coverage to reflect the new owner and intended use
• Get a valuation for tax, sale, or estate recordkeeping
• Consider logistics and emotional attachment—decide whether to keep, sell, or donate

Other Real Estate

• Obtain a professional appraisal to establish the date-of-death value
• Review deed and title status to determine if probate is required
• Consult an attorney to assist with transfer, sale, or co-ownership issues
• Consider ongoing costs (property taxes, insurance, maintenance) when deciding whether to keep or sell

Business Interests

• May require a professional valuation or legal support for transfer or sale
• Involve an attorney early if ownership or succession is unclear

Why Work with Gatewood—and an Estate Attorney

Inheriting assets is rarely simple. There are legal steps to follow, tax traps to avoid, and emotional decisions to make. But you don’t have to navigate it alone.

At Gatewood Wealth Solutions, we offer the clarity and expertise to help you:

• Organize and prioritize next steps
• Make confident, informed financial decisions
• Align inherited assets with your personal plan
• Coordinate with attorneys and other professionals to help ensure nothing is missed

This is about more than just what you’ve received. It’s about honoring a legacy, avoiding missteps, and building a future that reflects your values.

Let’s start with a conversation.

Because Wealth with Purpose starts with wisdom in moments like these.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC