# Inheritance

*Everyday Money — Finicade finance glossary*

An inheritance is property or money passed on when someone dies, distributed by their will or, absent one, by intestacy law. Two practical points dominate: assets with a named beneficiary (retirement accounts, life insurance) pass outside the will entirely and outrank whatever the will says, and inherited assets often receive a stepped-up cost basis, wiping out the deceased's unrealised capital gains. Inheritance tax rules vary enormously by country and, in the US, by state.

**Also known as:** bequest, legacy

**Related terms:** [Estate Planning](https://finicade.com/glossary/estate-planning), [Will](https://finicade.com/glossary/will), [Estate Tax](https://finicade.com/glossary/estate-tax), [Probate](https://finicade.com/glossary/probate), [Beneficiary](https://finicade.com/glossary/beneficiary)

Source: https://finicade.com/glossary/inheritance