Tax, Estate Planning, and Asset Protection Considerations

Jonathan I. Shenkman, and Martin M. Shenkman, JD, CPA/PFS, AEP

Every CPA understands that “asset allocation” is the determination of which asset classes (e.g., tax-exempt bonds, large cap stocks, international stocks) are included in a client portfolio. If, however, the overall asset allocation can be fine-tuned with attention to “asset location” (i.e., of the overall asset allocation, which asset class should be held in which client account), more favorable income and estate tax benefits may be achieved providing better overall results. Practitioners should be certain that the investment advisor understands the tax nuances of each client investment “bucket.” This column will review these important and often overlooked nuances.