> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tilt.now/llms.txt
> Use this file to discover all available pages before exploring further.

# Transition legacy holdings into a sleeve

> Assign existing equities or ETFs to a sleeve, monitor the transition, and review sell-down opportunities within tax constraints.

Use **Legacy holdings** for an equity or ETF you want to sell over time. Assign it to a sleeve so Tilt counts it there while you still own it. Tilt will not buy more.

For example, an account owns **100 shares of an older ETF**. You want that investment to count toward **US Large Cap** while moving into the sleeve's intended holdings. The older ETF has no place in that final portfolio: its destination weight is zero.

## 1. Assign the holding in Setup

Open **Clients**, choose the client and account, then go to **Setup → Settings → Legacy holdings**. Select **Add legacy holding**.

1. Under **Holding**, choose the older ETF.
2. Under **Sleeve**, choose **US Large Cap**, or the appropriate building block inside it. Choose the full path you intend if a sleeve appears more than once.
3. Set **Sell-down alert threshold** to **10%**.
4. Select **Save assignment**.

With 100 shares remaining, a 10% threshold means a proposal must sell at least **10 shares** to create a legacy sell-down opportunity for review. You can instead set a minimum USD sale value. Zero means any positive sale.

Saving takes effect immediately, outside **Queued changes**, and places no trades. The threshold decides when to show an opportunity; it does not set a tax budget or require a sale.

Tilt checks eligibility before saving. Use a positive-weight building block, not a composite, and a ticker with zero destination weight across the benchmark and tilts. Cash and manual assets are excluded. Resolve any reported tax-lot, price, foreign-exchange, or risk-coverage gaps before trying again.

## 2. Check how the sleeve is doing

Open **Tracking error details** in **Legacy holdings**. Tilt shows two comparisons:

| Measure | Question it helps answer |
| - | - |
| **Transition tracking error** | How closely does the sleeve follow the plan that still includes the older ETF? |
| **Destination tracking error** | How closely does it follow the final portfolio, without that ETF? |

The sleeve can follow its transition plan closely while still differing from its destination. Check the dates shown with the measurements. [Monitoring explained](/advisor/monitoring-explained#legacy-holdings-have-transition-and-destination-references) describes the references.

## 3. Review a sale when it is feasible

Tilt looks for sales within the account's tax and investment constraints. Suppose the older ETF trades at **\$100 per share**, with a **\$60 cost basis** for each share sold:

| Final proposed sale | Sale value | Estimated gain | Meets the 10% threshold? |
| - | - | - | - |
| 10 of the 100 shares | \$1,000 | \$400 | Yes |
| 5 of the 100 shares | \$500 | \$200 | No |

These figures exclude fees and other adjustments. The check uses the final proposal after trade sizing and lot selection. A qualifying sale can appear for review without a drift breach; other review reasons can still apply below the threshold.

If only **\$300 of gains capacity** remains and there are no offsetting losses or other proposed gains, the 10-share sale exceeds the budget. The 5-share sale fits the budget but misses the alert threshold. Neither creates a legacy sell-down opportunity. [Tax-aware management](/advisor/tax-aware-management#legacy-sell-downs-use-available-annual-gains-capacity) explains the budget calculation.

Check the sale, replacement holdings, and tax estimate before approving trades. [Review a rebalance](/advisor/review-rebalance) covers approval and execution.

To change the sleeve or threshold, use **Edit**. If a model or sleeve change causes **Needs review**, select **Review** and save the assignment again before relying on monitoring. **Remove assignment** ends the legacy treatment; it does not sell the position.


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