There's often talk about asset location, where you for example deploy your bonds in your tax deferred to avoid paying taxes. If you are a couple with an age difference, is there any advantage to deploy the asset to one couple?
Just wondering if there are other factors when splitting allocation across different people other than cost, etc.
- The younger couple would have a later RMD than the older one. Assuming the cost for the couple is equivalent (let's say that are both at Vanguard). Would it make more sense to place the bond portion with the older couple?
- In my state of IL, there is an estate tax exemption of of $4M. This mean if a couple living in IL creates a living trust, they will most likely end up with a trust for each person to preserve the exemption. If one couple has more of the money, should the higher growing allocation be placed with the one with less asset so that you don't get a situation where one trust has $6M and the other has $2M. It would be better if both has about $4M to avoid estate tax.
Just wondering if there are other factors when splitting allocation across different people other than cost, etc.
Statistics: Posted by gavinsiu — Mon May 20, 2024 2:51 pm — Replies 2 — Views 166