Liquidating inherited stocks receiving cash


22-Sep-2019 19:39

The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.

For example, if your dad bought 100 shares of Get Rich Quick in 1951 for each, his tax basis was

The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.For example, if your dad bought 100 shares of Get Rich Quick in 1951 for $10 each, his tax basis was $1,000.Bye holds a Bachelor of Journalism from the University of Missouri.Unfortunately for beneficiaries, handing out inheritances is the very last thing the executor or personal representative of a probate estate will do.

||

The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.

For example, if your dad bought 100 shares of Get Rich Quick in 1951 for $10 each, his tax basis was $1,000.

Bye holds a Bachelor of Journalism from the University of Missouri.

,000.

Bye holds a Bachelor of Journalism from the University of Missouri.

These individuals must take several steps before an estate or trust can be closed or a trust, from valuing assets to paying any taxes due.But if the stock were valued at 5 a share, the estate must pay tax on 0,000 -- a total of ,500 -- before the shares can be distributed to the beneficiaries.It's impossible to guess what tax rate might be imposed on estates after 2012.The tax legislation in 20 known as the Bush Tax Cuts provided for the gradual repeal of the estate tax.

In 2010, when the Bush Tax Cuts were scheduled to expire, there was no estate tax.

However, the alternative valuation date must be used by the entire estate.