Stock transfer

[Bexec]

Please explain the tax consequences of transferring stocks to the estate of the deceased vs. directly to the heirs?
The deceased lived in Maryland, the heirs do not.

 

[loku]

Stock in estate

If the stocks are transferred to the estate, then dividend income and gain or loss on the sale of the stocks is income or loss of the estate for income tax purposes (An estate with income files an income tax return). If the stock is transferred to the beneficiaries, the income or loss from the stock is income or loss of the beneficiaries for income tax purposes.