I am looking for a good re-investment option for my elderly mother to use as an estate planning inheritance vehicle. If all goes as expected she will start receiving monthly dividend like income income in a couple of months totaling between $55 -$95K per year that needs to be re-invested in a tax conserving vehicle until she passes away and capital gains are wiped out by step up. The issue is her current pension, social security and other passive incomes are pushing her towards multiple higher tax rates thanks to MAGI, NIIT and IRMAA, etc. To minimize these consequences without loosing sight of the ultimate goal of passing wealth on to her heirs. Hence the search for low to no dividend stocks and ETF's.
I know this is backwards from what most people are after, but there is reasoning here, unfortunately just about all the options I find have land mines attached. BOXX and its Ilk are likely being investigated and might turn into ordinary income at time of sale, which does not step up the same as capital gains, so seems attractive at first, but might be a time bomb. Others like BRK.B have historically not paid dividends, but there is no promise this will not change after Warren Buffet's retirement, ... Some ETF's are very low dividend but tend to be riskier like VUG
If you have any thoughts or suggestions I am happy to hear them.
p.s. note using historic performance over 10 years BRK.B vs SCHD would result in a yield difference that is roughly a wash (slight advantage to BRK.B on average) depending on which 10 year sliding window you start with, but would result in over $70,000 higher tax burden on average with SCHD.