Makes sense!If you can see statements, it is not a black box. I don't know how bullet proof a trust is regarding future distributions but that may be a legal question. If you are certain of getting something significant from the trust in the future, I think it is entirely reasonable to consider your current portfolio and what you might want to do in response but there is no rush to make any significant changes. In the meantime, your portfolio needs to be a stand alone portfolio for your own needs until you actually get a distribution.
The trust is irrevocable, they cannot terminate it, as I understand it. The point is to make a "completed gift", if they could rescind it then the IRS would not treat it as a completed gift.Why ? Because you don’t know the future. If your relatives are still alive they can change the investments or terminate the trust. A trustee could be dishonest. All kinds of things.
Believe in your own control of your assets.
They can change the investments, but then I could rebalance my investments accordingly too.
The trustee being dishonest is not impossible, but I am willing to write that off as very implausible given what I know of the family.
Yes exactly. I would be 100% VXUS.Part of the hesitation is that you would end up with all YOUR investments in international.
Yes, that's also part of the question I suppose. I haven't bought any bonds ever, because of how this trust has a huge amount of munis (more than my entire portfolio). So I suppose that's reasonable?If the question had been phrased “I have a trust that is 100% in BND can I consider it my bond allocation” I suspect we’d be more onboard.
Wait a sec, why not? If I had a certain amount of monthly disbursements from a trust, how is that different from holding a tax-exempt bond of the same monthly coupon?you don’t rebalance based on future income.
Statistics: Posted by hvjdlkuraz — Wed Feb 19, 2025 12:19 am — Replies 9 — Views 574