As one advances in life, estate planning considerations become a bigger concern particularly given that many investors have investment portfolios that must be considered when determining how to distribute assets. Estate planning issues are not merely transfer decisions. They also impact how one invests portfolio strategies including the decision of which assets to gift two younger generations. This planning focused on estate planning as it relates to equity investing is an important consideration and is an issue that Destination Wealth Management helps clients with on a consistent basis.

There are many considerations regarding investment strategy combined with estate planning. One obvious example is gifting of assets from one generation to another. It is currently a tax policy that assets are stepped-up based on the date of death of an asset owner. This means that if a child receives an asset as an inheritance, there is no automatic income tax; instead, the child receives the asset based on date of death cost basis. If this asset is given during one's lifetime, not only does the receiver of a gift receive the asset but they also inherit the low cost basis of the position.

It's important to make sure that one understands the tax considerations when gifts are made and is something that needs to be thought through carefully before distributions actually occur. This intersects with the investment strategy, as in some cases, the decision to diversify an asset can be impacted by whether one expects to leave this position long-term with a joint heir. It is a complex process and one that investors need to carefully consider when making judgments about investment strategies.

We encourage you to learn more about our financial planners in Rossmoor at Destination Wealth Management. We understand the interface between estate planning considerations as well as investment issues. I would be delighted to speak with you regarding these issues.

Destination Wealth Management is a client-centered wealth management firm that offers investment management, financial planning, and a holistic approach towards helping our clients in Rossmoor succeed throughout every important life transition.