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Financial Planning / Tax Strategies


Subject:  inheriting stock Date:  2/28/2014  3:47 PM
Author:  Goofyhoofy Number:  120291 of 129574

My father is in the final stages of life. He has a portfolio of about $2m. There are 4 children, six grandchildren. Each grandchild gets a straight bequest of $30k, the remainder is split among the four children. Almost all of the portfolio is in (highly) appreciated stock.

Three of the four children have brokerage accounts, the fourth does not, and asks [insists] that the inheritance be sent "in money" rather than stock when the time comes. I understand that inheriting "stock" will preclude taxes on appreciated gains. If I sweep the stock into the various brokerage accounts, no tax. What happens if I sell the fourth share and convert it "to money"? Will it then be taxed and will she receive less?

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