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Estate Planning

Inherited IRAs, step-up in basis, and what California families actually need

Estate planning is not about estate tax for most California families. With the federal exemption where it is, the questions that matter are different, namely who inherits what, how an inherited individual retirement account (IRA) has to be emptied, what happens to the basis of a home in San Mateo or Roseville, and whether the documents in the drawer still say what you think they say.

The guides here start from those questions. The inherited IRA guide walks through the SECURE Act 2.0 rules and the 10 year clock. The California estate planning guide covers what a family with $1 million to $8 million actually needs in 2026. Both are written for the person who just became responsible for someone else's money and wants to get it right.

Featured guideEstate Planning

Inherited IRA Planning Guide for Navigating SECURE Act 2.0 Rules, RMDs, and Tax Strategies

What happens when you inherit an IRA, how the SECURE Act 2.0 10-year rule and RMDs work, and how step-up in basis applies to inherited homes and accounts, including California's community property rules.

Most non-spouse beneficiaries who inherit an IRA after December 31, 2019 must empty the account within 10 years, and may also owe annual required minimum distributions during years 1 through 9 if the original owner had already reached their required beginning date.
Eligible designated beneficiaries, including surviving spouses, minor children of the account owner, and disabled or chronically ill individuals, may stretch distributions over their own life expectancy instead of using the 10-year rule.
Nyle BayerNyle Bayer · Published · 14 min read
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More in Estate Planning

Estate PlanningInherited IRA Rules for a Spouse and How Each Option Is Taxed · 14 minHow a surviving spouse's three IRA options affect required withdrawals, the early withdrawal penalty, and the ability to change course later.Estate PlanningEstate Planning Tax Strategies in California and What Matters When You Will Never Owe Estate Tax · 12 minA plain-English guide for California families with $1 million to $8 million in assets on the estate planning issues that actually apply to them in 2026, none of which involve the federal estate tax.
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Related terms
Step-up in basisRequired minimum distribution (RMD)Donor-advised fund
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For general education only, not individualized tax or investment advice. Up Capital Management is a Registered Investment Adviser.