Mutual funds

[TonyC]

In order to split up Mutual funds and stocks of the deceased for the settlement of an estate. Does each mutual fund get split up amongst the survivors without being considered cashed in so the survivors don't get taxed?

 

[loku]

Mutual find shares

The survivors would not get taxed even if you cashed them in and distributed the proceeds. Their value and treatment for estate tax purposes is the same whether they are cashed in or not. They are valued at the amount they could be cashed in for. Probably, the safest thing to do and the easiest is to split up and distribute the shares. That way there could be no legal arguments.