ERD50
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'm still helping the family to consolidate my MIL's and deceased FIL's accounts. He had one Vanguard account, which has an Admiral class fund in it (VMRAX), MIL is the trustee, it has been re-titled with the EIN assigned to his trust, so we are good there (I think). We have already opened an account at Fidelity under his trust/EIN, and have transferred some assets there.
I talked to Fidelity, and (as I feared), they can't do an in-kind transfer of an Admiral class stock. What are my options?
A) Sell it and transfer cash? The share price is actually down from the DOD step up basis, so this would likely 'waste' the tax loss. If I'm clear on how this all works, the trust calls for all dividends and distributions to be paid out to my MIL. She would claim them on her personal taxes, so AFAIK, the trust should not have any taxable events? They have a tax guy I can talk to, he did their taxes when they had a business, and they just stayed with him.
B) Can Vanguard 'downgrade' it? I searched this, but everything I saw was about going the other way, or being forced to a downgrade if the value dropped.
C) Wait it out, and sell if/when the share $ is close to the step-up basis? Then transfer the cash? No crystal ball, so this is iffy (cost basis ~ $85/sh, currently ~ $80/sh).
OK, now I see that the Admiral level on this is $50,000, the account is not much higher than that. So if 'B' is not an option, maybe sell just enough to drop to Admiral class to minimize tax G/L, and then transfer as an investor class?
-ERD50
I talked to Fidelity, and (as I feared), they can't do an in-kind transfer of an Admiral class stock. What are my options?
A) Sell it and transfer cash? The share price is actually down from the DOD step up basis, so this would likely 'waste' the tax loss. If I'm clear on how this all works, the trust calls for all dividends and distributions to be paid out to my MIL. She would claim them on her personal taxes, so AFAIK, the trust should not have any taxable events? They have a tax guy I can talk to, he did their taxes when they had a business, and they just stayed with him.
B) Can Vanguard 'downgrade' it? I searched this, but everything I saw was about going the other way, or being forced to a downgrade if the value dropped.
C) Wait it out, and sell if/when the share $ is close to the step-up basis? Then transfer the cash? No crystal ball, so this is iffy (cost basis ~ $85/sh, currently ~ $80/sh).
OK, now I see that the Admiral level on this is $50,000, the account is not much higher than that. So if 'B' is not an option, maybe sell just enough to drop to Admiral class to minimize tax G/L, and then transfer as an investor class?
-ERD50