Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, August 27, 2014

Ranking Assets: Which to Keep and Which to Cash Out First

Pro-ConIf low taxes for the estate and heirs is the goal, then it is important to consider the tax burdens that accompany various assets when prioritizing which to hold onto and which to cut ties from. Below is a ranking of nine assets from best to worst based on income tax consequences:

  1. Partnership Shares
  2. Artwork, Gold, and Other Collectables
  3. Highly Appreciated Stock
  4. Roth Accounts and Funds
  5. Moderately Appreciated Stock 
  6. IRA Accounts that are Taxable
  7. Bonds
  8. Cash
  9. Depreciated Securities

See William Baldwin, Estate Planning: A Ranking of Good Assets and Bad Assets, Forbes, Aug. 25, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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