US Tax-Smart Inheritance Planning Moves

Traditional IRAs can create tax friction: adult children must empty inherited accounts within 10 yr, often during peak earning years when taxes bite harder.
A Roth conversion can help: take current RMD first, then convert extra pre-tax savings so heirs get tax-free withdrawals and more flexibility over 10 yr.
After-tax RMD dollars may also fund permanent life insurance if coverage is reasonably priced, while extra cash may fit better in brokerage accounts than savings.
Conversion math should match family tax brackets: a full move can raise your taxes and health coverage costs, while partial conversions can favor higher earners.
One account to avoid for children: an HSA. Non-spouse heirs may owe tax immediately, and state inheritance or federal estate taxes can still apply.