Lost Step-up?
If a trust beneficiary inherits appreciated securities in a non-qualified account when the trust terminates, does he still get the step up in cost basis, or is there some provision having to do with the trust being a non-natural person?
Permalink Submitted by Alan - IRA critic on Tue, 2015-12-01 23:08
If the trust was irrevocable when the stocks were gifted or purchased, there is no basis adjustment upon trustor’s death. If the trust became irrevocable upon the death of the trustor, then there is a basis adjustment.