Investing for a 94-Year-Old
At 94, step-up in basis planning matters. Taxable brokerage positions with large embedded gains receive a stepped-up basis at death, eliminating the capital gains tax on that appreciation. Liquidating these positions to make gifts during life triggers capital gains tax that heirs would not owe. For most people, holding appreciated positions until death is more tax-efficient than gifting them. A tax advisor can model the specific situation.