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Subject:  Re: Consolidate Dad's Assets into 1 Income Fund? Date:  7/11/2001  2:49 PM
Author:  caltex Number:  7099 of 20640

It is not clear whether the assets are certificates or in a brokerage account(s). If not in a brokerage account, I would strongly suggest placing all of them in one account. With very few exceptions brokerages will accept all stocks, bonds and mutual funds. As the other reply said, the account balances can be transferred from one broker to another without being sold. Besides the tax implications, brokers charge a commission to sell.

Also, if there are other heirs when your father dies, they may question your decision to sell stocks just for your convenience, since paying the taxes diminishes the estate.

When you hold the securities in a brokerage account, the broker "owns" the security as far as the various companies, governments are concerned and tells you what part of what he owns is yours through the monthly statements, etc. Thus, at the end of the year he sends you one statement that covers all the dividends, interest income, purchases and sells for the year, which can be used to support the tax return. There is no need for all of the money to be in only one fund.

Until 2010 the stocks and bonds will have a changed basis when your father dies and you (and other heirs) inherit them. The new tax law changes that when the estate tax goes away. At that time the basis will stay the same and the when the heirs sell the security they will need to pay the capital gains tax.
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