Capital Gains Tax

Washington State

My parents had an revocable AB trust. My father died creating an irrevocable Trust B. Assets were transferred into Trust B at a stepped up basis. If an asset is sold while in Trust B will Trust B have to pay capital gains tax?

The trust says that within 6 months a certain dollar amount should be distrubuted to the beneficiaries. If an asset is distributed to a beneficiary is it distributed at the stepped up basis value or the then current value? If the current value is higher, is there capital gains tax to pay and who pays?

Thanks

Consult a local accountant or CPA who has experience with trust tax returns or post your question on the tax law message board.

DUPLICATE POST.
Post your question in one and only one forum.

FlyingRon,

I posted this question in the Tax forum only after it was suggested by Dandy Don to post the question there rather than Trust section. That seemed logical to me since it related to both****************************I didn't intially post in two forums.