The First Instinct Is Usually Wrong
When a South Carolina family inherits significant assets, the instinct is almost always to do something. To put the money somewhere safe. To sell the property before it becomes a burden. To divide things up before anyone argues about them.
That instinct is understandable. It is also, in most cases, the wrong move.
The families who navigate an inheritance well are the ones who pause before they act. Not indefinitely. Not out of indecision. But long enough to understand what they actually received, what it means legally and financially, and what decisions genuinely need to be made now versus what can wait.
This guide covers both: what you actually need to do in the first 90 days, and what you can afford to let sit until you have a clearer picture.
Step One: Understand What You Actually Inherited
Before any decision can be made, you need to know what you are working with. This sounds obvious. In practice, most families are surprised by how scattered and complex the picture turns out to be.
An inheritance can include any combination of the following: bank and brokerage accounts, retirement accounts (IRAs, 401(k)s, pensions), real estate, business interests, life insurance proceeds, annuities, personal property, and outstanding debts the estate may owe. Each of these categories is governed by different rules, has different tax implications, and may or may not go through probate before you can access it.
The first task is simply to make a list. Not to act on any of it, but to document what exists. If the deceased had a financial advisor, attorney, or CPA, they are the fastest path to a complete picture. If not, work through account statements, insurance documents, and any estate planning documents you can locate.
What Goes Through Probate and What Does Not
Not everything you inherit will pass through the South Carolina probate court. Understanding the distinction matters because it determines how quickly you can access different assets and what legal steps are required.
Assets that typically pass outside of probate include accounts with named beneficiaries (IRAs, 401(k)s, life insurance policies), jointly owned accounts with right of survivorship, and assets held in a trust. These transfer directly to the named beneficiary or surviving owner, often within a few weeks of providing a death certificate to the institution.
Assets that typically must go through probate include accounts or real estate titled solely in the deceased's name with no beneficiary designation, and personal property without a clear transfer mechanism.
In South Carolina, most probate cases take between 8 months and 2 years to complete, depending on the complexity of the estate, any disputes that arise, and court scheduling. The mandatory waiting period for creditor claims is 8 months, which means that even simple estates cannot be completed in less than about 8 months. (SC Code of Laws, Section 62-3-801, scstatehouse.gov, retrieved May 2026)
This is not a reason to panic. It is a reason to understand which assets are accessible now and which will require time and legal process. An estate attorney can tell you quickly which category each asset falls into.
The Tax Picture Depends on What You Inherited
South Carolina does not impose a state inheritance tax or estate tax. Federal estate tax applies only to very large estates, those above the federal exemption threshold. For estates of decedents who die during 2026, the basic exclusion amount is $15,000,000. (IRS) The vast majority of South Carolina families will not owe estate tax on an inheritance.
What you may owe taxes on is income generated by the inherited assets after the date of death, and any capital gains when you sell inherited assets. This is where the tax picture gets specific, and where the type of asset matters significantly.
Inherited brokerage accounts and real estate: the stepped-up basis
When an asset is inherited rather than sold or gifted, the cost basis typically gets stepped up to the fair market value of the property at the date of the individual's death. From a tax standpoint, it is as if the asset was purchased at the price the investor received it, and no tax is owed on any previous unrealized gains. (Fidelity)
In practical terms: if you inherit a brokerage account that the deceased purchased decades ago at a much lower value, you do not owe capital gains tax on all that growth. Your cost basis resets to the value at the date of death. If you sell immediately, you may owe little or nothing in capital gains.
Inherited traditional IRAs and retirement accounts do not receive a step-up in basis. (IRS) They are treated differently, which brings us to the next category.
Inherited IRAs: the rules changed in 2020 and again in 2025
The SECURE Act of 2019 and additional IRS regulations in 2022 created new rules that apply to non-spouse beneficiaries who inherit from original depositors who passed away in 2020 or later. The IRS finalized most of the new inherited IRA rules in 2024, and these rules went into effect in January 2025. (Fidelity)
Generally, a designated beneficiary is required to liquidate the account by the end of the 10th year following the year of death of the IRA owner. An RMD may be required in years 1 through 9 when the decedent had already begun taking RMDs. (Vanguard)
If you are the surviving spouse of the deceased, you have additional options, including rolling the inherited IRA into your own IRA. The spousal rollover rules are covered in more detail in a separate guide to the first 90 days after losing a spouse.
If you are not the surviving spouse, the 10-year rule almost certainly applies to you. The timing of withdrawals within that 10-year window has meaningful tax implications: withdrawing large amounts in high-income years can push you into a higher bracket. This is a decision worth working through with a CPA before you begin taking distributions.
Decisions That Actually Need to Be Made Now
Despite the general guidance to slow down, a few decisions do have real timeframes.
Beneficiary designations on the inherited account itself. If you are rolling an inherited IRA into your own IRA, or if you are keeping it as an inherited IRA, you should name your own beneficiary promptly. This is a simple form. It is not urgent in the same way a tax deadline is, but it is easy to overlook and matters significantly.
Required minimum distributions. For non-spouse beneficiaries subject to the 10-year rule who inherited from someone who had already begun taking RMDs, annual distributions are required in years 1 through 9, with the full account balance distributed by the end of the 10th year. Failure to take a required distribution carries an IRS penalty of up to 25% of the amount that should have been withdrawn. (Fidelity) If you inherited a retirement account from someone who had already begun taking distributions, confirm with your CPA or financial advisor whether and when annual RMD requirements apply to your specific situation.
Disclaiming assets. If for any reason you do not want to accept all or part of an inheritance, perhaps because accepting it would create tax complications or because you want the assets to pass to the next beneficiary, there is a legal mechanism for doing so. But if you decline to accept all or part of IRA assets you are entitled to, they will pass to the other eligible beneficiaries named on the original owner's account. Disclaimers are time-sensitive and irrevocable. If this is relevant to your situation, consult an estate attorney promptly.
What Can Wait
Most things can wait longer than you think.
Real estate does not need to be sold quickly. The stepped-up cost basis means that the longer you wait, within reason, the less the tax math changes. Selling immediately after inheritance is not necessarily advantageous, and in some cases, a hasty sale leaves money on the table.
Investment accounts do not need to be immediately repositioned. If the deceased held a brokerage account with appreciated securities, you have received a stepped-up basis. You can review and reposition on your own timeline, not under pressure.
Distributions from an inherited IRA do not need to start immediately for most beneficiaries, though you should confirm your specific situation with a CPA.
The decisions that tend to cause the most lasting damage in an inheritance are the ones made under pressure from people with opinions. A sibling who wants to sell the property before summer. A relative who has a strong view about what to do with the cash. An advisor who arrives with a plan before you have had time to understand what you received. The urgency in these conversations is almost never real. The consequences of acting on it are.
The Three Professionals You Need and What Each One Does
Navigating an inheritance well typically involves three distinct professionals. None of them fully covers the others' territory.
An estate attorney handles the legal side: probate, asset retitling, trust administration if applicable, and the legal transfer of real estate. If the estate is going through South Carolina probate, the estate attorney works with the probate court and keeps the process moving. The SC Bar Lawyer Referral Service (scbar.org) is a starting point for families who do not already have an estate attorney relationship.
A CPA handles the tax side: the final income tax return for the deceased, the estate's income tax return if applicable, the tax implications of inherited assets, and the timing of distributions from inherited retirement accounts. Tax decisions made in the year of the inheritance can have multi-year consequences. Your CPA should be involved before you make any significant financial decisions.
A financial advisor handles the investment accounts and longer-term financial planning: what to do with inherited brokerage assets, how to think about the inherited IRA within the context of your overall financial picture, and how the inheritance changes your own financial plan. This is the last professional to engage, not the first. The estate attorney and CPA should have completed the foundational legal and tax work before a financial advisor repositions assets.
Most South Carolina families benefit from all three. If you do not currently have relationships with any of them, ask a trusted peer, colleague, or existing attorney for a referral before accepting a recommendation from someone who has arrived unsolicited.
If you have inherited significant assets in South Carolina and you are not sure what moves first and what waits, with $1M or more in the picture, that is exactly the situation the Confidential Audit addresses.
A Confidential Audit is a single session in which Brad maps your full financial picture, identifies what requires immediate attention, and tells you directly what can wait.
Schedule yours: https://oncehub.com/Brad-Blackburn
Brad Blackburn, CFP®, ChFC®, is a registered representative of LPL Financial.