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Inheritance Tax?

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lesuk

Junior Member
What is the name of your state? Missouri...
My aunt's esatate is worth about $250,000. About $160,000 is in the form of stock with 1 one company; most of it's value is from dividend and splits over the years. She passed away and her trust states that all her assets will be distributed among family members....I am successor of the living trust and will take charge of distribution of the proceeds.

Are there any taxes that will be due for the amount of gain made over the years before her death?

I'm pretty sure I'll have to pay taxes on gains made from the time of her death to the time we sell the stock...right?
 


abezon

Senior Member
No tax due on the gains from when she bought 'till she passed away. The heirs receive the stock with a basis equal to its fair market value on the date she died. Any gains since then must be paid by the person who sells the stocks. You can sell the stock as the trustee & distribute cash, or you can distribute the actual shares & the heirs can decide when to sell their portion. If the trust sells, make sure the trust is closed within a year of her death, so the trust only has to file 1 tax return. That way you don't have to worry about principal/income designations.
 

lesuk

Junior Member
Thanks for your advise abezon. I'd read some IRS documentation and it was about as clear as mud on the subject but you've confirmed my interpretations ....I really appreciate your help.
 

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