Transfer of stock

[mrbill]

Not my strong area...Spouse deceased in 2017. Husband wants to gift his 2 adult children 50% each of their deceased Mother's Verizon stock, going back to the 1950's. Approx. 3,000 shares. Present value - $160,000 (approx).
No tax for Husband who gifts the stock (UGMA) and Lifetime gift exclusion.
Children will have the basis in the stock on share price the day of transfer.

Is my thinking correct ? Thanks for your help. Go Patriots

[Kram BergGold]

Inheritance or Gift

If within a certain amount of time after the mother's death, the father disclaims the inherited stock then it is treated as if the children inherited it. If that time period has elapsed (I forget what it is) then he would gift the stock to the children and he would have to file a gift tax return. They would still get the step up but but his uniform credit would be reduced (which is probably no big deal).

[Lion]

If a gift from father, the children receive it at the same basis as father. And, it sounds like father's basis is date of death value in your scenario. Not date of transfer to children.