Our Gone-Fishing Portfolios are free to use portfolios that take advantage of the no-transaction-fee, low-cost ETFs or mutual funds of each major custodian. Over the years, we’ve changed the funds and the allocations as new research or securities reveal improvements.
The short answer is that most taxable distributions from inherited IRAs are taxed at the the child / beneficiary’s income tax rate. The longer answer is that there are multiple chances for inheritance to be taxed.
An important part of the family’s emergency plan is to make sure you have a plan for when the financial spouse can no longer serve the family in that way, either because they are no longer interested or because of their incapacity.