I am guessing that all parties involved live in the state of Texas, which has no income tax. If this is the case, I would narrow it down to a national municipal fund. As the father’s wishes and the daughter’s desire is to continue the legacy, then I would consider this to be long duration.
If the desire is to continue the legacy, I would select a long duration fund such as Vanguard’s VWLUX instead of short-terms or intermediates. I have owned Vanguard CA state specific funds since 1996 and will keep them until my survivors get them and use their step-up cost basis to choose whatever fund they want.
As I live in CA, I illustrated the impact on income in a prior post when one mismatches the duration on a fund to its purpose, specifically when living in a high tax state like I do. In this case the CA long fund VCLAX versus the short-term VTES national municipal fund. It does not make sense for a long-term holder to forfeit income by holding a short-term fund because of ‘bond funds might go down’ thinking. This is why the majority of my municipals are in the CA long-term fund VCLAX.
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If the desire is to continue the legacy, I would select a long duration fund such as Vanguard’s VWLUX instead of short-terms or intermediates. I have owned Vanguard CA state specific funds since 1996 and will keep them until my survivors get them and use their step-up cost basis to choose whatever fund they want.
As I live in CA, I illustrated the impact on income in a prior post when one mismatches the duration on a fund to its purpose, specifically when living in a high tax state like I do. In this case the CA long fund VCLAX versus the short-term VTES national municipal fund. It does not make sense for a long-term holder to forfeit income by holding a short-term fund because of ‘bond funds might go down’ thinking. This is why the majority of my municipals are in the CA long-term fund VCLAX.
Statistics: Posted by Hacksawdave — Sat Jan 31, 2026 1:02 pm — Replies 19 — Views 610