... I'm thinking a Lazy Portfolio of
VTSAX - 55%
VTIAX - 20%
VBTLX - 25%
...
Trusts reach the top Federal bracket (23.8% on capital gains) at $15,450 of taxable income. So you should assume that your trust will pay 23.8% Federal plus 5% Alabama, for a total of 28.8%. On a capital gain of $343,306, the tax will be about $99,000. But that's only about 4% of the value of the assets. You'll make that back in less than three years since you'll avoid the 1% management fee, and you'll reduce the expense ratio of the funds by nearly a half a percent....
The funds were only bought last year in 2023. It took some time to settle the will and get everything transferred to me.
Looking at my most current statements the unrealized gains for both accounts added together is $343,306.50.
...
You'll also have a much simpler portfolio.
Statistics: Posted by bsteiner — Sat Jun 15, 2024 10:02 pm — Replies 35 — Views 1649