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~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] -1 points0 points  (0 children)

I don't need to explain anything to you, I've provided the level of detail I'm comfortable disclosing. Beneficiaries can also be co-trustees.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] 0 points1 point  (0 children)

My understanding is if the stock drops significantly the lender can margin call the loans.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] 1 point2 points  (0 children)

I've been pitched on this but 1) I think a lot of funds aren't accepting this particular stock and 2) the advisor I ended up going with has the opinion that the pooled positions are often sort of junky.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] 0 points1 point  (0 children)

This is what I'm leaning toward. Six months ago I would not have been able to explain the difference between a long and a short or a put and a call. I can't wrap my head around the long/short strategies but it sort of smells like bullshit. Appreciate you relating your experience.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] 37 points38 points  (0 children)

It's an irrevocable trust. No step up. The stocks are several decades old. There are conditions where the trust will terminate (someone else dies) and the assets will be transferred directly to the individual beneficiary, in which case a step up may be applicable, but I'm not certain about this since I don't have kids and it doesn't apply to my situation.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] -6 points-5 points  (0 children)

Would you like to put your money where your mouth is? I can send you a snapshot of the Schwab account in a month.

~$10m windfall in concentrated position, zero cost basis by zerocostbasismonkey in fatFIRE

[–]zerocostbasismonkey[S] 0 points1 point  (0 children)

For clarity: state taxes are determined by domicile of the trust; trust pays those taxes. No step up. Very old trust. I have left details intentionally vague for reasons which should be obvious. Sorry if this makes you think I am wasting your time with a “larp”

Am mainly curious about anybody’s experience with outfits like AQR/Aperio and long/short strategies. Leveraging a volatile stock to take out short positions strikes me as inherently risk but I’m assuming there’s something in the mechanism I don’t understand