Personal Investments • MIL's inherited Taxable (sell right away?)

My MIL inherited 1/3 of three accounts at Edwards Jones. We've now moved her 1. taxable, 2. inherited IRA died 2021, and 3. inherited IRA died 2023 to Vanguard. Starting to just think about overall asset allocation as we get her few other investments to Vanguard so they're in one place.

Overall will be about $200K, taxable is $38K, most of taxable is in a 12 month CD due in July.

My question is the other fund in taxable: AMECX INCOME FUND OF AMERICA CL A

It's $4K and up $250 since the original owner's death in November. We're going to want to sell it as we simplify and put everything in low fee, diversified Vanguard funds.

I should turn off reinvest dividends and capital gains now, correct?

She's in a low tax bracket, until we withdraw from the inherited later this year to meet the 10 year deadline for each.

The gain in this fund is fully taxable at her normal rate instead of capital gains rate if we sell before she's owned it 12 months, correct? Regardless I think we'll still do that, just want to be clear what the tax implications will be. It's a small gain IMO more than made up for with simplicity and a lower ER.

Statistics: Posted by runner9 — Sat Mar 16, 2024 6:24 am — Replies 2 — Views 288

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