Trust Asset

[peggysioux]

If stocks were held in trust and were sold after death of grantor, would the stock receive a step-up basis to FMV at date of grantor death ?

[dsi]

What do you mean by "held in trust"? What kind of trust?

[peggysioux]

Trust Question

Trust was a revocable grantor trust prior to grantor's death.

[MAJ]

Do you Trust ???

Fuzzy weather... But...

Get the trust document if one exists. If stock was transferred outright to trust while she was alive, the basis is her basis. If the transfer occurred as a result of her death, the basis is the FMV on the date of her death. Any purchases occurring in the trust use cost basis.

[appelman]

If the trust assets were treated as part of her estate...

...which is the usual situation for REVOCABLE trusts, then step-up (or step-down) applies. You should certainly look at the trust document, but this sounds to me like a typical living trust that becomes an irrevocable trust upon the death of the grantor. In that case the assets would be part of the grantor's estate, and the irrevocable trust would receive them with a stepped-up (or down) basis.

[S T]

Basos

Appleman is correct
See TTB 21-34 Under Estates, Trusts

Sandy

[peggysioux]

Trust Question

Thanks everyone!!