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Financial Planning / Tax Strategies


Subject:  Re: Trust Taxes Date:  10/22/2006  10:35 PM
Author:  ibnana Number:  89200 of 127616

if your mother had inherited the stock, and SHE established the trust
for her childres, is the cost basis still re your father's ownership,
or does it change to HER ownership, thus the cost basis changes.....

Hi sasha,

I would assume that if mom had inherited the stock outright and then she established the trust, it would no longer be father's ownership, but hers so the cost basis would be as of her death.

Bill had a more detailed answer. I had assumed the OP was referring to a simple A/B trust. That's what my dad had and also what DH and I have, but as Bill pointed out, it does depend on the terms of the trust.

We each have equities, etc. titled to each of us and whoever dies first the securities will go into a trust with the income from it going to the survivor if needed.

My mom and dad had theirs before the now more generous estate amounts, so by having my dad's stock go into a trust instead of to her as joint owner, it kept the stock out of her estate and lessened the estate tax hit when she died.


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