Trust taxes

[lorenzo45]

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

 

[FlyingRon]

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 basis is stepped up when father died.
If there was a gain over the stepped up basis, surely they do.

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?

Where are these "dollars" coming from. Is there cash in the trust in addition to whatever other capital assets? If the trust sells the asset. They pay the capital gain for the difference between the sales price and the (stepped up) basis.
If the asset is distributed to the beneficiary and the beneficiary sells it to cash out. Then the beneficiary owes the capital gains tax (figured the same way)