[USER]

I’m about to inherit a large amount of money with a mix of stocks, bonds, mutual funds, and cash, being managed by a financial advisor.

I currently manage my own investments with a simple path to wealth approach.

Because I’m not the best at knowing what or when to sell, my initial thought is to keep the money with the financial advisor and work with them to simplify the portfolio and then one day transfer it all in kind to manage myself.

What would you do? How would you transition to a simple path portfolio without major tax implications?

Would you do it yourself or get help?

[Scott]

Thoughts for your family in this situation.
There is enough stress with the passing of a loved one that running around for a new planner is not the immediate priority nor is dealing with all the other stress by handling all this on your own.

The existing FA knows what is going on and probably can help you with the transition for at least the first few months, then you can decide later (later probably being measured in months, not weeks or years).

A few extra months of fees isn’t going to matter in the long run either, there are more important things to deal with first.

I would suggest getting your plan reviewed at least on a project basis/one off with an advice only planner when there is a major life changing event is usually a good idea, a large inheritance is one such event since you seem to have concerns.

Whether this FA is the right one or not is hard to say, it depends.

[Angela]

If married, be very particular about commingling inherited funds with joint/common funds.

[Joe]

Assets receive a stepped up (or down) cost basis at death. There will be few tax consequences associated with this inheritance, with the possible exception of RMDs on tax deferred retirement accounts.

As for the financial advisor that was managing those assets, contracts do not survive death and there’s no reason I’d retain them if you are comfortable managing your own money.

In fact there’s no reason to retain them even if you’re not. Any advisor should be someone you select, not someone you “inherit”.

[Author]

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