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Author: yFool One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5741  
Subject: trust tax question Date: 7/7/2001 2:55 PM
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my father is now the beneficiary of a trust.
a number of stocks in the trust must be liquidated by this august in order to pay estate taxes. some of these stocks were internet stocks which have likely lost value since their purchase date. is their any bright side to having to cash in these stocks, eg, tax advantage?

anyone know of any "light" reading on the subject?

thanks

bill
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3121 of 5741
Subject: Re: trust tax question Date: 7/7/2001 4:22 PM
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my father is now the beneficiary of a trust.
a number of stocks in the trust must be liquidated by this august in order to pay estate taxes. some of these stocks were internet
stocks which have likely lost value since their purchase date. is their any bright side to having to cash in these stocks, eg, tax
advantage?

anyone know of any "light" reading on the subject?


If you are talking about the Federal tax, the stock is valued at the date of death or 6 months latter. I assume the 6 months latter will have the tax value closer to the actual value.



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Author: gurdison Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3122 of 5741
Subject: Re: trust tax question Date: 7/8/2001 7:44 PM
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<If you are talking about the Federal tax, the stock is valued at the date of death or 6 months latter. I assume the 6 months latter will have the tax value closer to the actual value.>


Does the fact that the holdings are in a trust change the valuation options that are allowed? Also, if the 6 month alternate date is allowed, isn't it an all or nothing option? IE: you cannot selectively choose which items to value on the later date. If distributions have begun before the 6 month date, doesn't that eliminate the 6 month alternate valuation?

I ask these questions to better understand the broader rules. They may or may not apply to the original poster.


BRG



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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3124 of 5741
Subject: Re: trust tax question Date: 7/8/2001 9:29 PM
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Does the fact that the holdings are in a trust change the valuation options that are allowed? Also, if the 6 month alternate date is
allowed, isn't it an all or nothing option? IE: you cannot selectively choose which items to value on the later date. If distributions
have begun before the 6 month date, doesn't that eliminate the 6 month alternate valuation?


Yes it is all or nothing.

The trust may make a difference. What kind of a trust. Living trust and the assest were include in the estate? Then you can use the 6 months. Trust set up by another person. Then probaly not.

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