estate to brother

client passed away. account was transferred in an estate account. account holds mutual fund positions. half of account goes to brother and other half to charities.

questions:
a. does brother get a step up in basis on his half?

b. can he take ownership of his half of mutual funds or does the estate liquidate everything and then send a check to him?

c. Can he take ownership of every mutual fund position and then pay the estate back half of the money in cash for the chariy share?

Thankyou,
Douglas



The executor can distribute in kind, or can sell the assets and distribute cash.In general, the estate and beneficiaies will get a new basis equal to the estate tax value.If you’re the lawyer, you may wish to bring in tax/estates co-counsel who would be familiar with this.



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