Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have set up a trust for my adult children and am thinking about funding it with appreciated stock from a joint account with my spouse. Will I incur any tax liability from the gift and what will be the taxable basis of the stock for the trust?

Not Pixy here, but I'll try to help.

There is no income tax liability involved in this transfer. Your basis and holding period transfer with the stock, so make sure the trustee gets that information.

If the current value of the stock exceeds $10,000 you may face a gift tax obligation. You can read about the basics in IRS Publication 950, but I urge you to get professional guidance if you're contemplating a sizeable gift.

Phil Marti
Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.