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An estate planning financial advisor at Dimov Tax maps each inherited account to the heirs’ tax and cash needs. Dimov Tax answers each estate inquiry from the contact form within 24 hours, in confidence.
Federal estate and gift tax exclusion per person, 2026
Annual gift exclusion per recipient, 2026
Federal estate tax rate on the estate above the exclusion
From death to the Form 706 due date, plus 6 months to file on extension
Sources: IRS 2026 inflation adjustments and Form 706 instructions, checked October 2026
A named heir outside the exception groups empties an inherited individual retirement account (IRA) by December 31 of the 10th year after the year of death.
If a traditional IRA owner died on or after the owner’s required minimum distribution (RMD) start date, that heir also withdraws a minimum in years 1 to 9. The IRS applies those yearly minimums from 2025.
Heirs in these exception groups can take withdrawals over their own life expectancy:
Traditional IRA
Reset. The IRS resets the cost basis of each holding the deceased owned alone to its value on the date of death. On sale. An heir who sells pays tax on the gain above that reset value. No reset. The IRS gives inherited IRAs and annuities no such reset.
A licensed appraiser values the house as of the date of death, the figure the IRS uses as the heirs’ basis. Heirs who sell measure gain from that value, and Dimov Tax prepares the sale return.
A sudden wealth advisor weighs cash or short term Treasury bills for a large inheritance against the heir’s time horizon and risk tolerance. The advisor sets money aside for tax bills first.
The executor files the deceased person’s last individual return, covering January 1 to the date of death, by the April filing deadline of the following year.
The executor files an estate income tax return when the estate has $600 or more in gross income for the year, or a nonresident alien beneficiary. Dimov Tax prepares Form 1041 with a K-1 income statement for each beneficiary who receives income from the estate.
The executor can file Form 706 to pass the deceased person’s unused estate tax exclusion to the surviving spouse, even when the estate owes no tax. The IRS allows up to 5 years after death for a late portability election, when the executor had no duty to file Form 706.
The family’s estate attorney drafts the will and any trusts, and gives the legal advice. Dimov Tax drafts no legal documents.
Achim von Bodman, CFP®, checks beneficiary designations and account titles against those documents. He flags each conflict to the client and the attorney.
Bring the estate documents and recent statements to the first call. Dimov Tax sets the fee by the number of documents and accounts in the review.
