How to invest inherited stock /bond portfolio

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Topic Author
grace2020
Posts: 12
Joined: Thu Jan 11, 2018 9:50 am

How to invest inherited stock /bond portfolio

Post by grace2020 »

Hi, I will be inheriting part of my parents portfolio that has been set up by one of the big investing companies. This particular company hasn't done a very good job with my parents portfolio and I have no intention of leaving it with them. I don't know what it consists of in terms of stocks, bonds or ?. I have a couple retirement savings accounts with Vanguard 2024, one that I set up myself with after taxed money, and another through payroll reductions that is a Roth account with Vanguard via TIAA. I am happy with Vanguard.

I know this is a very vague question but one must start somewhere. How shall I go about transferring this investment account, ie do I set up a special transfer account and then decide how I want it invested? Since I already have a retirements fund should I build that or put it somewhere else? Sorry I am so vague but I don't really know where to start. I do own my own condo and I still have a mortgage. I am still working and plan on working for a few more years. I am 63 years old.

Thanks for any help getting me pointed in the right direction.

Cheers
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Duckie
Posts: 7655
Joined: Thu Mar 08, 2007 2:55 pm

Re: How to invest inherited stock /bond portfolio

Post by Duckie »

pageskipro wrote:I will be inheriting part of my parents portfolio that has been set up by one of the big investing companies. This particular company hasn't done a very good job with my parents portfolio and I have no intention of leaving it with them. I don't know what it consists of in terms of stocks, bonds or ?.
Are these taxable assets, IRAs, or what? Is there any kind of trust involved?
I have a couple retirement savings accounts with Vanguard 2024, one that I set up myself with after taxed money
So, an ordinary taxable account?
another through payroll reductions that is a Roth account with Vanguard via TIAA.
Is this like a 401k, 403b or something? Is TIAA the custodian and the fund a Vanguard fund?
How shall I go about transferring this investment account, ie do I set up a special transfer account and then decide how I want it invested?
If there is no trust involved and if anything is in a taxable account then you need to find the cost basis for each stock/fund/ETF. The basis likely will be stepped up to the value at date of death. You need to know the cost basis so you can figure the tax-hit when selling. In a tax-sheltered account you don't need the basis, you can sell inside the account without tax issues.

You probably need to open an account titled in your name (or in the case of an IRA it would be titled as something like "dad's inherited IRA FBO pageskipro"). Once in your name you can sell and buy assets and move the accounts to a different custodian.
Since I already have a retirements fund should I build that or put it somewhere else?
What to do with the inheritance depends on what your situation is. Consider filling out the following template. The more information you provide, the better our advice will be.
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Topic Author
grace2020
Posts: 12
Joined: Thu Jan 11, 2018 9:50 am

Re: How to invest inherited stock /bond portfolio

Post by grace2020 »

Hi, thank you!

Yes it is a trust from my parents! My accounts, one is a roth and another is an IRA, I believe it is a 403b and I think that must be as you said TIAA custodian of Vanguard Funds.

I will have a look at the template and fill in as you have asked.

Thank you again!
wokkawokkawokka
Posts: 17
Joined: Mon Nov 12, 2018 12:11 am

Re: How to invest inherited stock /bond portfolio

Post by wokkawokkawokka »

my mom went through a process of transferring accounts from my dad's trust after he passed, not to vang, but still. you can transfer, but if vang, call them to ask questions, they won't pressure you, just provide info. you will prob need documents, like probably the trust document maybe death certificate. good luck.
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