Cost basis for stock in a Trust

Get Legal Help Today

 Secured with SHA-256 Encryption

Cost basis for stock in a Trust

I have a question about what establishes Cost basis for stock. In 1998 my step-father put some stock in an Irrivocable Trust that matures when I turn 60 this year. The Trust dept. said that the Cost basis for this stock is $1.00 which seems incorrect. When he put the stock in the Trust he names the Bank Trustee. The stock was worth $67.00 when it was put in the trust and is worth about the same now. My question is is I sell the stock do I use the cost basis of $1.00 or the $67.00 it was worth when given to me?

Asked on March 16, 2012 under Estate Planning, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You first have to ascertain the value of the stock when your step-father received the stock regardless when he placed it as a trust asset. If the trust was an estate planning devise and you are entitled to it after the passing of those who signed the trust, there is a chance that the basis of the stock may have been stepped up (increased) at the passing of those that signed the document (date of death).

Without reading the document I cannot give you a definitive opinion other than suggest that you consult with a Wills and trust attorney with respect to the trust document.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption