Stock Cost Basis - A & B Trusts

[Squirrel48]

What is the name of your state (only U.S. law)? California

After my mother died in 1999, my father had an A & B trust. He died in 2008. He had two brokerage accounts at the same firm -- one for each trust. When my sisters and I inherited our parents' estate, we each received one account from the brokerage firm, with the total stock shares of the A and B trust accounts divided by three. I sold many of the shares of stock in 2009.

My question is: does the 1999 date of my mother's death come into play when figuring out the cost basis of these inherited shares? Or do I simply go by my father's date of death because that's when we inherited them?

Thank you.

 

[FlyingRon]

The basis of the stuff in the B trust have the stepped-up basis to the value at the time the mother died. The stuff in the A trust steps-up at the time the father died.

You have to figure out which assets were in what trusts and apply the correct basis to them to determine the capital gains.

 

[tecate]

Not all "A" trusts are survivor's trusts. (Typically, assets in the survivor's trust are "stepped up" on the second death and the assets in the first decedent's trust aren't.) In fact, some survivor's trusts are Trust B. Ask the trustee, or have your tax advisor review the trust.