Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Inheritance or Gift?? Date: 4/16/2001 5:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
My condolences on the loss of your mother.

Since you state that your mother's estate was valued at more than 650K, the answer to your questions can be found in the records of the estate. The executor would have had to file a Form 706, Estate Tax Return, at the federal level, and probably a corresponding return at the state level. The executor should have records of how the estate assets were valued. This would include how the assets were owned at the date of death.

If the stocks were deemed to be owned entirely by your mother, then the beneficiaries would receive a fully stepped up basis and would recognize the full loss (subject to annual maximum capital loss rules).

If the stocks were co-owned, then a gift would have occurred at some time (or times) and only part of the basis would be stepped up. The remainder would be subject to Estate Tax.

If the executor made a mistake on the Estate Tax Return, you still have time to amend the return (three years from filing date).

Ira
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Macro Economics

Intel's Broadwell Potential
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement