Legal Question in Tax Law in New York

Estate Taxation - basis of stock holdings

My brother's estate contained stock investments. His total estate amounted to less than the $2,ooo,000 cutoff for filing the 706.

I presume that the stepped up basis is based on his date of death (no option for revaluation six months hence - since no estate taxes were owed to the Federal governtment. ) He died in NY State.


Asked on 7/12/07, 11:39 am

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Estate Taxation - basis of stock holdings

I agree with Norman that the step-up is based on values at date of death. The only adjustment occurs if you use the alternative value date (6 months later, or sale of asset date, whichever occurs the earlier). I also agree that while there may not have been any Fdereal Estate Tax (Form 706), there may be a State Estate or Inheritance Tax due. Many States, like NY, froze their death taxes at lower amounts than the federal ascending amounts. Thus, depending upon where the decedent resided at his dath of death, you should check the laws of the State to see what their limits are. For example, NY may be $1,000,000 but NJ and FL froze at $675.000. Ohio may be using a different number.

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Answered on 7/13/07, 1:23 pm
Norman Nadel Norman Nadel, Esq.

Re: Estate Taxation - basis of stock holdings

I am not sure what your question is. The cost basis for the securities held by the decedent will be the date of death value. No federal estate tax return is required if the estate is under $2 million. A New York state estate tax return is required if the estate is valued at over $1 million.

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Answered on 7/12/07, 12:02 pm


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