I appreciate your concern for your family. I have a family member who is mostly dependent on me financially right now.
One option I have considered, if needed: gifting them equities "in kind" as a transfer from my taxable brokerage account to theirs, and then they would sell the equities and not have to pay long-term capital gains at their very low tax bracket.
It's something to consider. I do hold mostly equities in my brokerage account, and I receive dividends from those, but it's a small portion of my income. I spend the dividends to pay bills.
My tax strategy with the brokerage account is that my heirs will receive the stepped-up cost basis of the equities upon my death. But I am much older than you, and retired, and most of my assets are in an IRA. Most of my own tax strategy at this point is around IRA withdrawals and IRMAA (it's like a progressive tax in that there are "cliffs" whereupon you pay more per month for Medicare.)
Congratulations on getting to the forum at your age! There is much to learn at every stage.
One option I have considered, if needed: gifting them equities "in kind" as a transfer from my taxable brokerage account to theirs, and then they would sell the equities and not have to pay long-term capital gains at their very low tax bracket.
It's something to consider. I do hold mostly equities in my brokerage account, and I receive dividends from those, but it's a small portion of my income. I spend the dividends to pay bills.
My tax strategy with the brokerage account is that my heirs will receive the stepped-up cost basis of the equities upon my death. But I am much older than you, and retired, and most of my assets are in an IRA. Most of my own tax strategy at this point is around IRA withdrawals and IRMAA (it's like a progressive tax in that there are "cliffs" whereupon you pay more per month for Medicare.)
Congratulations on getting to the forum at your age! There is much to learn at every stage.
Statistics: Posted by LilyFleur — Sat Mar 02, 2024 3:30 pm — Replies 16 — Views 835