sjrcpa
Level 15
12-07-2019
11:41 AM
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Based on your description no one gets a step up. Trust's basis = father's basis.
Trust assets distributed to beneficiaries and then sold have father's basis, too unless trust elects to recognize gain (and pay tax) on the FMV at distribution.
I'd double check the facts and your interpretation of the trust doc. Most people would not set it up this way.
The more I know the more I don’t know.