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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.

TMF ExRO
Phil Marti
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