Non-spouse beneficiaries (children): inherited IRAs/401(k)s are subject to the SECURE Act 10-year rule — the account must be fully emptied within 10 years of death. Minor children of the decedent are eligible designated beneficiaries (annual stretch RMDs) only until they reach majority; the 10-year clock then starts. Federal estate tax: the 2026 exemption is $15M/person ($30M/couple, OBBBA) — no federal estate tax exposure at current net worth. Heirs also receive a step-up in cost basis on taxable-account assets at death, wiping out embedded capital gains.
🛡️ Insurance & Protection
📁 Financial Organization
❤️ Survivor Financial Plan
If Scott Dies First
SS Survivor Benefit
Courtney can claim as early as 60, but at only 71.5% of Scott's benefit; she gets 100% only by waiting until her own FRA
IRA Inheritance
Spouse inherits as own IRA — no RMD forced, treat as own
ACA Change
HH size -1 (or file single). Cliff drops ~$21k. Plan for bracket shift.
Income Change
Loses one SS benefit (~$36k/yr). Portfolio must cover gap.
Filing Status
Single after year of death. Higher rates on same income.
Emergency Fund
Maintain 6-month cash reserve accessible within 48 hours
If Courtney Dies First
SS Survivor Benefit
Scott can claim as early as 60, but at only 71.5% of Courtney's benefit; he gets 100% only by waiting until his own FRA
IRA Inheritance
Scott inherits as own IRA — no forced RMD
ACA Change
HH3 → HH2. Another ~$21k cliff reduction. Budget healthcare.
Kids' Trust
Confirm trust or UTMA accounts funded and guardianship documented
Beneficiary Cascade
All assets should cascade: spouse → children (via trust until 25)
Power of Attorney
Scott needs updated POA and healthcare directive immediately