taxes on change of brokerage account
Client has revocable trust with a bank as trustee. He wants to revoke the trust and have the stock postitons in the trust moved over to his individual account under his name in a like to like manner.
Can he do this without a taxable situation since the trust was revocable (he and the trust are one in the same) or will he be hit with possible taxes (gains vs losses) due to the stock positions going from one name to another?
Any help please.
Thank you,
Doug
Permalink Submitted by mk foss on Fri, 2008-11-21 02:19
A revocable trust is reported to the IRS using the grantor/owner’s SSN. Changing the title of the account and using the same SSN, will not cause a problem. If by some chance, he were to receive a Form 1099 indicating that the the values transferred were sales proceeds, he should contact the broker and not give up until he reaches someone high enough up in the company to correct the error.