Inherited stock
Stocks were held in a trust account and transferred to the owner’s three children after owner’s death. Normally when stock is inherited, the cost basis steps up. Is the same true when it is transferred from a trust to the beneficiaries? I don’t know if this cost basis should be stepped up or not. Thanks for the help!
Permalink Submitted by William Hartley on Tue, 2007-09-18 15:21
As long as the stock is in the owners taxable estate there is a step up. Some irrevocable trusts are not in the owners taxable estate in which case there is no step up.