CONTRIBUTED CONTENT: You've just inherited something. Now what?

Receiving an inheritance often happens at the worst possible time — when you're grieving, exhausted, and overwhelmed with logistics. And yet the decisions you make in the weeks and months that follow can have lasting financial and legal consequences.

Here's a practical guide to help Idaho beneficiaries navigate the process thoughtfully, without rushing into decisions they might regret.

First: Slow Down

The single most important piece of advice for new heirs is this: you almost certainly have more time than you think. Unless you're dealing with a perishable business or a property with immediate carrying costs, most inherited assets can sit while you get your bearings.

Don't sell the house in the first month. Don't roll over the IRA before you understand the tax rules. Don't sign anything you haven't read. Grief impairs judgment, and financial decisions made in a fog are hard to undo.

Understand What You've Actually Inherited

Different types of inherited assets come with different rules — and different tax consequences. Before making any moves, take stock of what you have:

• Real property (a home or land): You likely receive a step-up in basis to the property's fair market value as of the date of death. This is a significant tax benefit — if you sell soon after inheriting, you may owe little or no capital gains tax.

• Traditional IRAs and 401(k)s: These do not receive a step-up in basis. Every dollar you withdraw will be taxed as ordinary income. Under the SECURE Act, most non-spouse beneficiaries must empty the account within 10 years — but how you pace those withdrawals matters enormously for your tax bill.

• Roth IRAs: Also subject to the 10-year rule for most beneficiaries, but qualified distributions are generally tax-free. These can often be left to grow longer.

• Brokerage accounts and cash: Usually straightforward, but confirm whether a transfer-on-death designation was in place or whether the asset must go through probate court.

Idaho's Tax Environment Works in Your Favor

Good news for Idaho heirs: Idaho has no state inheritance tax and no state estate tax. You won't owe the state anything simply because you received an inheritance. Federal estate tax is also unlikely to be an issue unless the estate you're inheriting from exceeds $15 million — the current federal exemption under the One Big Beautiful Bill Act.

That said, income taxes still apply to inherited retirement accounts, and capital gains taxes may apply if you sell appreciated assets. These are worth planning around.

Watch Out for the Probate Timeline

If the deceased didn't have a trust, the estate may need to go through Idaho's probate court process before assets can be distributed to you. Probate in Idaho is relatively straightforward compared to some states, but it does take time — often several months to a year or more for larger estates.

During this period, you may not have legal access to certain assets even if you know they're intended for you. An estate planning attorney can help you understand where things stand and what to expect.

Build a Simple Team

Depending on what you've inherited, it may be worth consulting two or three professionals before making major decisions:

• An estate planning or probate attorney, to help you understand your rights and navigate any legal process.

• A CPA or tax advisor, especially if you've inherited retirement accounts or real estate with significant appreciation.

• A financial advisor, if the inheritance is substantial enough to affect your long-term financial picture.

You don't need to engage everyone on day one. Start with whoever is most relevant to the immediate decisions in front of you.

Let This Moment Prompt Your Own Planning

There's an unexpected benefit to inheriting: it often puts estate planning in a new light. Watching a family navigate the process — smoothly or chaotically — can be the clearest illustration of why having a plan matters. If going through this experience has you thinking about your own documents, that instinct is worth following.

A will, a trust, beneficiary designations, a power of attorney — these aren't just gifts to your heirs. They're the difference between a process that takes months and one that's resolved in days.

My law firm is currently offering free telephonic, electronic, or in-person consultations concerning probating estates or creating estate planning documents.

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Robert J. Green is an Elder Law, Trust, Estate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Kootenai Law at 208-765-6555, [email protected], or visit www.KootenaiLaw.com.

This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.