Ask Terry Questions inheritance


By Terry Savage on October 21, 2015 | Investments

I have inherited an investment account. I am not at all familiar with these types of accounts. I am very conservative and want to be as safe as possible with this money. I am thinking of putting this money into something safer like a CD. Is there another safe option you could suggest?

Terry Says:  Well, a lot depends on the kind of “investment account” you inherited.  Was it an IRA, and were you the beneficiary?  If so, there are some important rules you need to follow.  You’ll want to keep the money growing on a tax deferred basis if it is in an IRA.  If the money is just in a brokerage account, then you might want to get some advice about how to handle the stocks, and whether you should sell some or all of them.  Again, a lot will depend on your personal situation.  But there will also be taxes involved, though the consequences should be minimal.  The price of the stocks on the date of the decedent’s death will become your new cost basis.

If you will write back and let me know what type of “investment account” this is, where it is held, and give me an idea of what stocks or other assets are in the account, I can point you in the right direction to get some responsible help.   I don’t need to publish all those details, so include your email and I will get back to you.  But I like to post these questions so people will have a better idea of how to proceed if they find themselves in a similar situation!



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