Use Boldin AI to create an estate transfer report
See what each of your heirs could receive after taxes, for a traditional family or a blended family. Your plan shows your estate value at the end of your plan. But your heirs won't keep every dollar. Some accounts pass tax-free. Others come with an income tax bill. Boldin AI can sort your accounts by how they're taxed and show the net amount each heir could receive.
What the report shows
Boldin AI splits each heir's inheritance into four groups:
Group | Accounts | How heirs are taxed |
1. Step-up in basis | Taxable brokerage accounts and real estate | No tax on gains up to the date of death. The cost basis resets to the value on that date. |
2. Ordinary income tax, 10-year rule | Traditional IRA, 401(k), and other tax-deferred accounts | Withdrawals are taxed as income. Most non-spouse heirs must empty the account within 10 years. |
3. HSAs | Health Savings Accounts | A spouse can keep it as their own HSA, tax-free. A non-spouse heir owes income tax on the full balance in the year of death. |
4. Tax-free | Roth accounts, cash, and savings | No income tax. Inherited Roth accounts still follow the 10-year rule. |
Groups 2 and 3 are called income in respect of a decedent (IRD). That's money nobody has paid income tax on yet, so your heirs will. To estimate their share after tax, you tell Boldin AI your heirs' expected tax rate. Boldin AI reduces groups 2 and 3 by that rate.
Tip Not sure what tax rate to use? Pick the federal bracket you expect your heirs to be in during their working years, such as 22% or 24%. Then add your heirs' state income tax rate. You can run the report again with a different rate to see how much it changes. |
Before you start
Make sure all your accounts are in your plan, including HSAs, cash, and real estate.
Check your longevity age and your spouse's. Boldin AI uses them to decide when each person passes.
Know how many heirs you have and who gets what. Your beneficiary forms decide this for retirement accounts, not your will.
Traditional family
Use these prompts if you and your spouse plan to leave everything to your shared children.
Option 1: Your spouse inherits first
This is the most common setup. Your spouse becomes the owner of your accounts. When your spouse passes, everything goes to your children.
Create an estate transfer report for this scenario:
I die first. My spouse takes ownership of my accounts. When my spouse dies, everything passes equally to our [X] children.
When the last owner dies, show the total inheritance for each heir, split into these groups:
1. Step-up in basis: taxable brokerage accounts and real estate. Heirs owe no tax on gains up to the date of death.
2. Ordinary income tax, 10-year rule: Traditional IRA, 401(k), and other tax-deferred accounts. Heirs must empty these within 10 years.
3. Ordinary income tax, taxed all at once: HSAs. A non-spouse heir owes income tax on the full balance in the year of death.
4. Tax-free: Roth accounts (the 10-year rule still applies) and cash or savings.
Reduce groups 2 and 3 by [Y]%, my heirs' estimated income tax rate.
Show the net inheritance for each heir.
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Option 2: Your children inherit directly
Some people name their children as beneficiaries so they inherit sooner. This can also spread the tax across more years and more people.
Create an estate transfer report for this scenario:
I die first. My spouse does not take ownership of my accounts. My assets pass equally to our [X] children. When my spouse dies, my spouse's assets also pass equally to our [X] children.
Show the inheritance for each heir at each death, split into these groups:
1. Step-up in basis: taxable brokerage accounts and real estate. Heirs owe no tax on gains up to the date of death.
2. Ordinary income tax, 10-year rule: Traditional IRA, 401(k), and other tax-deferred accounts. Heirs must empty these within 10 years.
3. Ordinary income tax, taxed all at once: HSAs. A non-spouse heir owes income tax on the full balance in the year of death.
4. Tax-free: Roth accounts (the 10-year rule still applies) and cash or savings.
Reduce groups 2 and 3 by [Y]%, my heirs' estimated income tax rate.
Show the net inheritance for each heir, and the total each heir receives from both of us.
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Blended family
If you or your spouse have children from a previous relationship, who inherits depends on how your accounts are set up. These two prompts cover the most common setups.
Option 1: Each spouse leaves their accounts to their own children
Create an estate transfer report for this scenario:
I have [X] children. My spouse has [X] children. When I die, my accounts pass equally to my children. When my spouse dies, my spouse's accounts pass equally to my spouse's children. [Our joint accounts pass to my spouse first, then split equally among all [X] children.]
Show the inheritance for each heir at each death, split into these groups:
1. Step-up in basis: taxable brokerage accounts and real estate. Heirs owe no tax on gains up to the date of death.
2. Ordinary income tax, 10-year rule: Traditional IRA, 401(k), and other tax-deferred accounts. Heirs must empty these within 10 years.
3. Ordinary income tax, taxed all at once: HSAs. A non-spouse heir owes income tax on the full balance in the year of death.
4. Tax-free: Roth accounts (the 10-year rule still applies) and cash or savings.
Reduce groups 2 and 3 by [Y]%, my heirs' estimated income tax rate. Show the net inheritance for each heir, and label whose child each heir is.
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Option 2: Your spouse inherits first, then all the children share
Create an estate transfer report for this scenario:
I have [X] children. My spouse has [X] children. I die first. My spouse takes ownership of my accounts. When my spouse dies, everything passes to all [X] children [equally / in these shares: ___].
When the last owner dies, show the total inheritance for each heir, split into these groups:
1. Step-up in basis: taxable brokerage accounts and real estate. Heirs owe no tax on gains up to the date of death.
2. Ordinary income tax, 10-year rule: Traditional IRA, 401(k), and other tax-deferred accounts. Heirs must empty these within 10 years.
3. Ordinary income tax, taxed all at once: HSAs. A non-spouse heir owes income tax on the full balance in the year of death.
4. Tax-free: Roth accounts (the 10-year rule still applies) and cash or savings.
Reduce groups 2 and 3 by [Y]%, my heirs' estimated income tax rate. Show the net inheritance for each heir, and label whose child each heir is. |
Good to know When your spouse takes ownership of your accounts, your spouse decides who inherits them next. Your spouse can change beneficiaries at any time. Many blended families use a trust to protect each side's children. If that's you, talk to an estate attorney. Boldin AI's report assumes your heirs inherit the accounts directly. |
Next steps
Once you have your report, ask Boldin AI a follow-up question. For example:
"Which accounts create the biggest tax bill for my heirs?"
"How would Roth conversions up to the top of the 22% bracket change each heir's net inheritance?"
"Compare Option 1 and Option 2. Which leaves more to my children after taxes?"
Tip Each spouse's children may be in different tax brackets. If so, ask Boldin AI to use a different tax rate for each heir. |
Limitations
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