Legal Question in Wills and Trusts in Massachusetts
my mother has a fair amt of stock held for a very long time. If the stock were put into a trust would capital gains apply and when would the step up basis begin for the benificiaries
Asked on 8/05/10, 5:25 am
1 Answer from Attorneys
Assuming it is a revocable trust, the long term capital gains would apply immediately. A long term capital gain on an irrevocable trust depending on its terms would apply after a year or sooner depending on its terms.
A stepped up basis would not occur until your mother's death and depending on the amount of stock and the date of death there could be a limit on the stepped up basis.
I would suggest you contact an attorney before doing anything as the timing of the changes coud impact your mother's medicaid benefits in the future.
Answered on 8/10/10, 8:19 am
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