Value of stock

[Ginny J]

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

Dredging up from memory here:

When a person dies, and their stock is in trust, does the new basis become what the value of the stock is on date-of-death? Everything has rolled from a social security number to an EIN number.

If that stock is sold: if the stock was considered long-term stock, will it still be long-term if it is not held for a year past death?

Same question involving the house that was also in the trust. Is now the new basis based on the appraisal from date-of-death?

Seems to me that is the case, but my memory isn't too hot these days. Trying to figure out how to get everything paid; it's not exactly a stellar market right now for stocks or real estate.

[FlyingRon]

Originally Posted by Ginny J

When a person dies, and their stock is in trust, does the new basis become what the value of the stock is on date-of-death?

Generally, yes. The fact that the stock is in the living trust doesn't change the tax picture from if it were held directly by the deceased. The trust only really changes the mode of transfer to the heirs/beneficiary.

If that stock is sold: if the stock was considered long-term stock, will it still be long-term if it is not held for a year past death?

The date of death is unimportant in the long term treatment. It only needs to be held a year from when it was originally purchased.

Same question involving the house that was also in the trust. Is now the new basis based on the appraisal from date-of-death?

Same dael.