If you've recently inherited a pre-tax retirement account, you could be facing a big tax bill as some major changes are coming to estate planning next year. BNY Wealth estate planning strategist Jerry Doyle joins Wealth to discuss the changes and how that may impact your inheritance.

"People have to be aware of the required minimum distribution rules," Doyle tells Yahoo Finance.

He continues, "When you have an IRA, once the IRA owner reaches a certain age, you have to start taking money out of the plan, and that has to come out over a certain period of time. Prior to 2020, people were able to take the amount over their life expectancy so you could spread the money from the retirement plan over an extended period of time. Unfortunately, the Secure Act in 2019 limited that."

Now, there are only five kinds of people who qualify for life expectancy payouts: surviving spouses, minor children of the IRA owner, those who are disabled, those with chronic illnesses, or those who are no more than ten years younger than the IRA owner. Outside of these individuals, everyone else has to use the IRA over a ten-year period.

"During that ten-year period, they have to take annual distributions based upon their life expectancy and then clean out the balance of the IRA in year number ten. If the IRA owner has died and has not reached that required beginning date, there's still a ten-year payout period, but you don't have to take any money out in year one through nine if you don't want to," he adds.

Watch the video above to also hear about potential changes to the 2017 Tax Cuts and Jobs Act.

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This post was written by Melanie Riehl