Generally speaking, the Secure Act established that "non-eligible designated beneficiaries" who inherited an IRA in 2020 or later are subject to a 10-year payout period. Those who are eligible designated beneficiaries, on the other hand, can generally stretch the withdrawal according to their own life expectancy. 
1. Certain beneficiaries can still stretch their inherited IRAs.
Eligible designated beneficiaries include surviving spouses, minor children of the account owner, disabled beneficiaries, chronically ill beneficiaries and beneficiaries who are less than 10 years younger than the account owner.
One caveat with respect to minor children inheriting IRAs is that the life expectancy rule applies only until the child reaches the age of majority, at which point the 10-year distribution period applies.
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Most adult children consider themselves prepared to manage their inheritance but some parents believe otherwise, new research from Fidelity suggests.
Moreover, just over half of parents ages 55 and older with at least $500,000 in investable assets have yet to even discuss their net worth with their grown children, according to the 2025 Family & Finance Study, released Thursday.
Almost all families — 97% — recognize the importance of estate planning conversations but nearly half haven't held them yet, and almost half of parents haven't told their children how much or even whether they'll inherit, Fidelity found.
“As people get older — especially past 70 — they often become less willing to talk about things like estate planning, long-term care or how their family can be involved in planning and decision-making,” said Timothy Habbershon, managing director and founder of the Fidelity Center for Family Engagement.
“But with trillions of dollars preparing to change hands, there are millions of families going through generational transitions. This is a unique opportunity to start planning conversations that can create confidence, closeness, and peace of mind for years to come," he added.
While 70% of parents have created a will or estate plan, nearly that same percentage haven't shared inheritance details such as money, real estate and family businesses with their children, the study found. Data shows that family conversations about these issues improve confidence and preparedness, Fidelity said.
Among other points, the study found that 95% of children ages 25 to 54 say they're ready to handle inherited wealth, while 25% of parents ages 55 and older don't believe that their children are prepared and express concerns about how they will manage the estate.
Other data from The Generations Project, a Fidelity Center for Family Engagement Fidelity initiative, shows that 76% of the next generation want to know if they are named beneficiaries but only 35% of baby boomers feel a need to talk with their heirs, according to the investment giant, which says shared planning and education can build trust and prove key to a successful wealth transfer.
“Planning for the future isn’t just about protecting wealth — it’s also about protecting relationships,” said David Peterson, head of advanced wealth solutions at Fidelity. "While money can feel like a taboo topic, approaching it with openness and empathy can help families feel more connected — and better prepared to navigate life’s transitions with clarity and care.”
Fidelity is known as a retirement services provider and asset manager. Asset managers are trying to help families and new advisors understand that the same demographic trends that increased demand for retirement advice and annuities will expand demand for help with estate planning and estate administration.
The 2025 Family & Finance Study, based on a survey in July and August conducted by Versta Research, questioned U.S. parents ages 55 and older with at least $500,000 in investable assets and children ages 25 to 54, and adults those ages with parents meeting the age and wealth criteria, about estate planning and generational wealth transfer.
According to the survey:
- 35% of parents don't want their children to know how much they'll inherit while 56% of children want to know.
- 43% of children expect to become caregivers while only 12% of parents expect that to be the situation.
- 70% of parents say they've made a will and estate plan they feel confident about.
- 40% of parents are unsure about their children's ability to manage debt.
- 43% of parents are not confident in their children's ability to stick with a budget.
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