We examine how financial theory and economic principles offer guidance and predictions about the organization of investments and asset allocation decisions given the structure of taxes in estate--planning situations. We provide insight about many of the conventional approaches to estate planning...

We examine how financial theory and economic principles offer guidance and predictions about the organization of investments and asset allocation decisions given the structure of taxes in estate - planning situations. We provide insight about many of the conventional approaches to estate...

We examine the impact of capital gains taxes upon the structure of an investor's optimal portfolio in the presence of multiple risky assets. Our numerical solutions suggest that the diversification benefits of reducing the exposure to a highly volatile concentrated position significantly...

This article characterizes optimal dynamic consumption and portfolio decisions in the presence of capital gains taxes and short-sale restrictions. The optimal decisions are a function of the investor's age, initial portfolio holdings, and tax basis. Our results capture the trade-off between the...

We investigate the optimal intertemporal asset allocation and location decisions for an investor with both taxable and tax-deferred investment opportunities. With unrestricted borrowing opportunities, the investor optimally allocates his entire tax-deferred wealth to taxable bonds and combines...