I Inherited a Stock Portfolio. What Should I Check First?
An inherited portfolio arrives with someone else’s choices, tax history and risks. Here is what to check first, in order, and why there is rarely a reason to rush.
ResourcesGuide
My Spouse Handled Our Investments. Where Do I Start?
If your husband or wife always managed the money and you now have to, you do not need to understand everything this month. Here is what needs doing soon, what can wait, and the three numbers that tell you most of what you need to know.
Key takeaways
- Start by changing nothing. Secure cash for bills, list every account, and learn three numbers: the total, the biggest single position, and what a 2008-style crash would cost in dollars. FINRA advises against hasty major decisions after a spouse dies.
- A few things are time-sensitive: death certificates, a call to Social Security, account retitling and any required retirement withdrawals.
- Understanding comes before changing. Each holding should have a purpose you can explain in one sentence.
- You can keep the current advisor while you learn. Check their record on FINRA BrokerCheck and ask for every fee in writing.
My husband handled all our investments and he passed away. Where do I start?
Start with the next few weeks, not the portfolio. Make sure you have enough cash in a bank account for bills, the funeral and several months of living costs. Then gather paperwork. The investments can usually sit as they are while you do this. FINRA’s guide on managing money after losing a spouse puts it plainly: avoid hastily making major financial decisions in this period.
Many people in your position feel they are behind. You are not. Markets go up and down every day, but a portfolio that was built over decades does not need to be fixed this month. Our guide on decisions to avoid in the first months covers the pressure points.
What has to happen soon, and what can wait?
| Soon | Can usually wait |
|---|---|
| Order several certified death certificates; most firms ask for one | Selling or switching investments |
| Call Social Security (1-800-772-1213); survivor benefits and a $255 one-time payment may apply | Choosing a new advisor or firm |
| Tell each brokerage and retirement plan; ask what they need to retitle accounts | Buying annuities, insurance or new products |
| Ask each IRA custodian whether a required withdrawal is still due this year | Paying off the mortgage or selling the house |
| Keep paying bills and insurance premiums | Big gifts or loans to family |
How do I find out what we own?
Make one list of every account. Look through recent mail and email for statements, last year’s tax return (the 1099 forms list the firms that paid dividends or interest), and your spouse’s papers and computer. For each account, write down:
- The firm, the account type (taxable brokerage, IRA, Roth IRA, 401(k), annuity) and whose name it is in.
- The named beneficiary, if any; retirement accounts usually pass by beneficiary form, not by the will.
- The latest total value and the date of the statement.
- Who to call: the firm’s phone number and any advisor’s name.
- Whether there is an advisory fee, and how much.
If you need help reading the statements, see how to read a brokerage statement. For an inherited IRA, the withdrawal rules differ for spouses and others; see the inherited IRA 10-year rule.
I’ve never managed money. What do I need to understand first?
Three numbers tell you most of what matters. You do not need to learn every term first. Illustrative example for a couple’s accounts worth $1,200,000:
| Number | What it tells you | Illustrative |
|---|---|---|
| Total value, all accounts | What you have to work with | $1,200,000 |
| Biggest single position | How much depends on one company | One stock at $240,000, or 20% |
| Worst-case drop in dollars | What a severe crash could cost on paper | About $678,000 if it were all in the S&P 500 |
The last line uses the S&P 500 index’s 56.5% peak-to-trough fall in 2007–09, from Exent’s data. Few portfolios are 100% in stocks, so your number will likely be smaller. The point is to know it before the next downturn, so a falling statement does not come as a shock. Our portfolio stress test guide shows how to work it out by hand.
After the three numbers, go holding by holding and write one sentence for each: what it is and why it is there. “A fund that owns the 500 largest US companies” is enough. Anything you cannot describe is a question for the advisor or the firm, not a reason to sell.
Should I keep my spouse’s advisor, and what about taxes?
You can keep the advisor while you learn and decide later. Ask for the full fee in dollars, what they are paid for, and whether they act as a fiduciary. Look them up on FINRA BrokerCheck. If questions about a brokerage account go unanswered, FINRA runs a Securities Helpline for Seniors at 844-574-3577. More in checking your advisor’s portfolio.
On taxes, the IRS’s Publication 551 explains that inherited property in a taxable account generally takes a cost basis equal to its value on the date of death, with different rules in community property states and for jointly owned assets. That can make selling cheaper than it looks on the statement, which still shows the old cost. Retirement accounts follow separate rules. Ask a tax professional before selling anything large.
How to see what you now own with Exent
- Upload a screenshot or file of each account’s holdings (CSV, Excel, PDF or Google Sheet); no brokerage login. Several accounts can be kept as separate portfolios.
- Exent shows the biggest positions, concentration, and a crash replay through 2008, 2020 and 2022 in dollars.
- The holdings scorecard labels each position (Wealth Generating, Wealth Preserving, Prospect, Risky) so you know which ones to ask about first.
Frequently asked questions
Make sure you have cash for bills and living costs, then list every account and its beneficiary. Leave the investments as they are until you understand them, unless a deadline requires action.
Usually not right away. Accounts often need to be retitled, and some retirement accounts have withdrawal rules, but selling is a separate decision that can wait until you understand what you own.
Learn three numbers first: the total value, the largest single position and what a severe crash would cost in dollars. Then write one sentence on what each holding is for.
Social Security may pay a one-time $255 death payment and monthly survivor benefits, which can start at 60, or at 50 if you have a disability. You apply by phone at 1-800-772-1213.
There is no need to decide quickly. Ask for all fees in writing, check the advisor on FINRA BrokerCheck, and decide once you understand the portfolio and the service.
See what your portfolio is really made of.
Upload a screenshot of your holdings and get concentration, overlap, crash exposure and a risk-matched benchmark in about a minute.
Check my portfolioLimited offer$1.95 for unlimited checks· unlimited checks
Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.