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Thanks for these informative replies.

This trust was set up as an irrevocable trust by my grandmother, and the beneficiary is my mother. btw, I don't know what the the rationale was for establishing the irrevocable trust.

As long as we're talking about "stepped-up" basis- my grandmother is also bequeathing to my mother a large amount of a single stock holding (not in any type of trust). My grandmother has owned the stock for decades and it's appreciated substantially during that period. Unless I'm missing something, the step-up will mean if my mother sold any of that stock a very short time after inheriting it, the amount of the proceeds subject to long-term captital gains would be virtually zero- is this correct? Suppose the stock went down slightly after the date of my grandmother's death- would the step-up mean my mother would actually be able to claim a loss on any sale? Lastly, is the step-up rule scheduled to go away any time soon?
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