As a fiduciary financial advisor in Kings Mountain, Holland Capital helps adult children decide what to do with an inherited home, land or IRA, and how each choice affects their taxes. We work with clients in Kings Mountain by video and phone, and meet in person by appointment at the Regus center in Kings Mountain.
An inheritance often arrives with a deadline and a house full of decisions.
In Kings Mountain, what a parent leaves may be a home, some land and a retirement account. When the parent dies, the children can become owners of all three at once.
Some choices can wait. Others have tax rules and dates attached. Family feelings about the house can make even simple decisions harder.
It helps to know which decisions come first before anything is sold or cashed out.
An Inherited IRA
Most adult children who inherit an IRA must empty it within ten years after the year of the parent’s death. If the parent had already started required withdrawals, the child may also need to take some money out each year during those ten years.
Each withdrawal from a traditional IRA is taxed as income. Taking it all at once can push you into a higher tax bracket. Spreading it over several years may lower the total tax. An inherited Roth IRA follows the ten-year rule too, but the withdrawals are usually tax-free.
Our guide on inherited IRAs explains the rules for each type of beneficiary.
A Parent’s House or Land
When you inherit a house or land, its cost for tax purposes generally resets to its value on the date of death. If you sell soon after for about that value, there may be little or no capital gain to tax.
North Carolina has no estate tax and no inheritance tax, so the state does not tax the inheritance itself.
Keeping the property is also a choice. It comes with taxes, insurance and upkeep, and with brothers or sisters as co-owners if the estate was split. We look at what keeping it would cost next to what selling would bring.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Investing What You Inherit
If you sell the property or take money from the IRA, you may have more cash than you are used to. Nothing has to be invested that week.
We fold the inherited money into your own plan under a written investment policy statement. It sets what the money is for, how much risk fits and which account should hold it.
Holland Capital’s investment management for inherited money begins with your goals, not your parent’s old portfolio.
Our page on estate distribution planning covers how estates are settled and shared.
How We Work with Clients in Kings Mountain
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Gather the latest statement for any inherited account, the beneficiary information if you have it and what you know about the property. A copy of the will or trust helps if one exists.
We sort the inheritance decisions by deadline before deciding what to sell, keep or invest.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Kings Mountain, we meet by appointment at the Regus center at 502 West King Street in Kings Mountain, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Kings Mountain.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
What Can a Fiduciary Financial Advisor Do with an Inheritance?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For an inheritance, that covers the tax timing of the IRA, the property decision and the proceeds.
If inherited money is invested with us, we are paid more. We say so up front and include options that keep the money elsewhere.
Do I Have to Pay Tax on an Inherited House in North Carolina?
North Carolina has no inheritance tax. If you sell the house, federal capital gains tax generally applies only to gain above its value at the date of death, which is often small if you sell soon.
If you rent the house or keep it for years, the tax picture changes. We look at your plans for it first.
Can We Meet in Kings Mountain?
Yes, by appointment at the Regus center downtown on West King Street.
Some of the work, such as reviewing statements, can also be done by phone or video.
Photo: Kingscitydata / Wikimedia Commons / CC0, cropped.
