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Trust - tax basis of stock

Mother passes years ago.

Shares belonging to the beneficiary - my client - go into a black hole (held up for unknown reasons) even though there was a trust/will. They are eventually received by CA unclaimed property in 2021.  

In 2022, my client receives the stock from CA Unclaimed Property on 6/3/2022

I assume her tax basis is the FMV. But what is the date?

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Level 15

Mom’s date of death

Slava Ukraini!
Level 15

"even though there was a trust/will"

For future reference: You can't state them like that, as if they are synonyms. Each has different ramifications.

There is or isn't a trust. There is or isn't a will. The Trust might be the owner of specific properties and investments, or a will can list that the estate "pours over" to the trust.

But separately, third condition = the investment account (and financial institution accounts) might have a designated beneficiary (or POD = pay on death), which might be neither the trust nor going to the estate. A specified account beneficiary overrides the trust and the will, as a direct beneficiary.

Just to help understand who's on first, what happened, who was supposed to make it happen, etc.

The will might specify two children split the estate. There might be a trust with financial holdings inside of it (checking, money market, CDs), including real estate, all titled to the trust, and naming the next door neighbors on both sides as the only beneficiaries. And the investment account beneficiary might leave that account to the janitor at the school, who isn't even a family member. Which means the estate is Mom's clothes and jewelry and personal effects.

And if Mom never told anyone all of this, that's why families get mad.

"Level Up" is a gaming function, not a real life function.

I saved that to my practice aid library. Thank you.

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