Life Transitions

Inheritance Planning Calculator

Model the after-tax, after-debt value of an inheritance and project its long-term investment growth and income potential.

Inheritance Outcome

Investable amount

$165,000.00

Projected value

$638,497.94

After 10% tax and $15,000.00 in debts, $165,000.00 is available to invest. At 7% annual return, this grows to $638,497.94 in 20 years, generating $25,539.92/year ($2,128.33/month) at 4% withdrawal.

Inheritance Flow

From gross inheritance to investable amount

Gross inheritance

$200,000.00

Tax paid

$20,000.00

After debt payoff

$165,000.00

Value at year 20

$638,497.94

Allocation

Stocks

$99,000.00

Bonds

$49,500.00

Cash

$16,500.00

How to use it

Enter the expected inheritance amount, applicable tax rate, debts you plan to pay off, investment allocation percentages, expected return, and investment time horizon.
Read the investable amount after taxes and debt. This is your actual starting point. Then check the projected value at your time horizon to see long-term potential.
The annual income at 4% SWR shows what sustainable yearly income the invested inheritance could generate. Compare this to your current expenses to see its real impact.
Adjust the allocation between stocks, bonds, and cash to see how it affects projected growth. Higher stock allocation increases potential returns but also volatility.
Re-run when inheritance estimates change, when tax rules are updated, or when your investment timeline shifts. Consider consulting an estate attorney and financial planner for complex estates.

AI Integrations

Contract, discovery endpoints, and developer notes for agent use.

Always available for agents

Tool contract JSON

https://aifinhub.io/contracts/inheritance-planning-calculator.json

Stable input and output contract for this exact tool.

Human review

People can use the browser page to sense-check outputs and charts, but agents should still execute against the contract and discovery endpoints.

/agent-tools.json - machine-readable tool index.
/llms.txt - human-readable model discovery guide.
/.well-known/webmcp.json - WebMCP capabilities manifest.
/.well-known/ai-plugin.json - plugin-style discovery manifest.

{
  "tool": "inheritance_planning",
  "expected_inheritance": 200000,
  "tax_rate_percent": 10,
  "existing_debts": 15000,
  "stocks_percent": 60,
  "bonds_percent": 30,
  "cash_percent": 10,
  "return_percent": 7,
  "time_horizon": 20
}

Open tool contract JSON Open AI integrations guide

Expand developer notes

Agent playbook

Resolve Inheritance Planning Calculator from /agent-tools.json and open its contract before execution.
Validate inputs against the contract schema instead of scraping labels from the page UI.
Open the browser page only when a person wants to review charts, assumptions, or related tools.

Agent FAQ

Should ChatGPT, Claude, or another agent click through the UI?

No. Start with /agent-tools.json, then follow the tool's contract URL. The page UI is for human review, not parameter discovery.

When do tools show Quick and Advanced?

Every tool opens in Quick Start first. Advanced Controls keeps the same scenario, reveals more assumptions or diagnostics, and every tool keeps AI integrations inline below the instructions.

When should an agent still open the browser page?

Open it when a human wants to sense-check the output, review the chart, or keep exploring related tools after the calculation finishes.

Questions people usually ask

How is inheritance taxed?

It varies dramatically by jurisdiction. The US federal estate tax only applies above $13.61 million (2024). However, 6 states have separate inheritance taxes (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Many countries have much lower thresholds.

Should I pay off debts with an inheritance?

Generally yes, especially high-interest debt (credit cards, personal loans). The guaranteed return of eliminating 20%+ APR debt far exceeds any investment return. Low-rate debt (mortgage under 4%) is more debatable.

What allocation makes sense for inherited money?

It depends on your time horizon and existing portfolio. For 20+ year horizons, a stock-heavy allocation (70-80% stocks) historically produces the best outcomes. For shorter horizons or immediate income needs, more bonds and cash.

What does the 4% SWR income mean?

It shows the annual income you could sustainably draw if you invested the inheritance and withdrew 4% annually (adjusted for inflation). This is a rough estimate of the ongoing income the inheritance could generate indefinitely.

Should I invest a lump sum all at once?

Statistically, lump-sum investing beats dollar-cost averaging about two-thirds of the time. But the emotional risk of investing everything right before a downturn is real. A common compromise is investing 50% immediately and the rest over 6-12 months.