Adjustments to my portforlio at age 88

Terry Says

If your portfolio is in a retirement account, such as an IRA, all withdrawals will be taxed as ordinary income. If your stocks and bonds are owned directly by you, and not in a retirement account, you will pay capital gains taxes on any assets held longer than one year. Under current tax laws, that is quite a tax break. At the same time, if you happen to have any losses, you can offset any losses against gains to reduce your taxes.
And, interestingly, under current law if you die and leave those stocks and bonds to an heir, that person gets a “step up in basis” to the value at the date of death. That means if he or she sells them, the “cost basis” for tax purposes will be the value on the date of death! If you’re a long time holder, the beneficiary of your will would pay no taxes if he or she sold th4e week after your death.

I strongly encourage you to get some tax and estate planning advice, to make sure your accounts are properly titled. The best idea would be to create a Revocable Living Trust and transfer the stocks into the name of the trust. If they are held at a brokerage firm that’s easy to do. There is no tax implication for making this move because the trust uses your Social Security number. But you will name a successor trustee to act if you die or become incapacitated, to automatically take over and carry out your written wishes for distribution of your assets after death or to use the money for your care if you cannot make decisions on your own. Again, you need an expert estate planning attorney to guide you through this process.