How are asset divided in a taxable account for a married couple?

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ee_guy
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Joined: Sat Apr 13, 2019 3:28 pm

How are asset divided in a taxable account for a married couple?

Post by ee_guy »

How do BH divide taxable assets between spouses (both in good health) in a non-community property state? Is it 50/50 or something else. The reason for asking is that on average, men die before women. Under this scenario, it would be advantageous for the man to own a larger percentage of assets in the taxable account to take advantage of the step up in bases. This topic is only focused on division in assets between spouses and not about asset allocation or taxable vs non-taxable. Of course both individuals would have to agree or else endure martial strife.

Since the future is unknown, it seems 50/50 is the best option.
Last edited by ee_guy on Mon Feb 03, 2025 2:53 pm, edited 1 time in total.
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cheese_breath
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Re: How are asset divided in a taxable account for a married couple?

Post by cheese_breath »

When I lived in a non-community property state, everything except my IRAs was jointly owned.
The surest way to know the future is when it becomes the past.
David_Cary
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Joined: Wed Mar 06, 2024 1:14 pm

Re: How are asset divided in a taxable account for a married couple?

Post by David_Cary »

I don't think there is a stepup basis for spouses.
TropikThunder
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Re: How are asset divided in a taxable account for a married couple?

Post by TropikThunder »

David_Cary wrote: Mon Feb 03, 2025 3:53 pm I don't think there is a stepup basis for spouses.
You would be incorrect.

https://www.kitces.com/blog/step-up-in- ... ty-states/
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