1041 and capital gains and losses

[KarenMM]

My client died in June 2014, and her assets immediately rolled over into a trust. Those assets included securities. The securities were then sold in July of 2014 (except for 4 that were forgotten.) I have a historical date of death valuation from Merrill Lynch, so I know what the gains and losses were. Here's my question: Do those gains and losses retain the short and long term character from the client's holding period, or are they all short term, since they were sold a month after her death, when the trust was created?

[taxmom34]

I believe long term. inherited property includes time deceased owned the intangibles etc

[Burke]

The assets would have gotten stepped-up basis at her date of death. And they all become long-term property, even if she had bought them the day before she died.