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Subject:  Re: Trust Taxes Date:  10/22/2006  6:42 PM
Author:  ibnana Number:  89193 of 123001

Each heir's distribution will probably in shares of the equities,thus getting a stepped-up basis for each stock.

The cost basis date for the shares will be the date of her father's death, not her mother's recent death.

My question is will the trust have to pay capital gains tax on all stocks appreciation once the distribution to the heirs occurs?

The stocks will be distributed to the heirs according to the terms of the trust. EG: If there are five heirs and