Irrevocable Trust and step up - Spidell

Irrevocable Trust and step up

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Message Board Irrevocable Trust and step up

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    • #331603
      Sal Censoprano

      Taxpayer passes away and creates an irrevocable trust. The income from the trust is distributed to his spouse with 2 sons as co-trustees.  The mother passes and the lone asset is an Edward Jones account

      IS the EJ account eligible for step up?

    • #331637

      It is more accurate to refer to an adjustment of basis to FMV, rather than a “step up”.  It could be a step-down.

      You need to determine who/what owned the property at time of death.  An adjustment of basis to FMV applies to property inherited from an individual who died.  A trust is neither an individual nor does it die. See Pub 551 for more information.

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