Corporate ORphan
Recycles dryer sheets
- Joined
- Sep 21, 2010
- Messages
- 250
Our mother died recently and she passed some investments to us via an irrevocable trust and have a couple of questions. Can anyone help us?
A. Shares of Stock (common and preferred)
1. The trust was set up to convert from a revocable trust to an irrevocable trust at the time of her passing, 11/10/2014. Me and my 2 siblings are now the successor trustees.
2. She had some shares of stock in that trust at FIDO and their ownership was transferred to us in a like kind transfer of shares of the same stock in a new account at
FIDO in our name (DH and mine) which they required us to open for them to perform the transaction on 12/10/2014.
3. A friend of ours (an accountant) told us that our cost basis (for use in determining capital gains in any future transactions) of the shares would be the value of the stock
on the date of the transaction (ie. 12/10/2014) and that any gain or loss on the shares between 11/10 and 12/10 would be reported on the Irrevocable Trusts tax return.
We have been searching and searching through the documents on the IRS www page for any publications, regulations, forms or form instructions for information that
would confirm this and have had no luck so far. Specifically, we've searched through the 1040 forms, the related schedules as well as any instructions associated wtth
them and we've looked through form 706 as well as the instructions for that form and had no luck. We found references to inherited assets, but no leads to assets
acquired as proceeds from the liquidation of a trust.
We've also looked through publications 551 with no luck as well. Instructions for inheriting assets from an estate, but nothing covering assets received from a trust.
B. We also received some shares in some mutual funds (both stock funds and bond funds) and have a similar quandary.
Establishing our cost basis for these investments seems rather straightforward (if what our friend tells us is true), but we'd really like to find the IRS instructions, publication or code sections where this is explained because we want to make sure we report our taxes correctly for 2014 and any additional information we might be required to supply to support the amounts we use as well as support the decisions we made on how to report it will be so much easier to track down now versus some date in the future.
Thanks so much.
Any help or guidance will be appreciated.
BTW, DH was a licensed CPA back in the early 80's but hasn't practiced in around 30 years, so he's familiar with the terminology, but hasn't remained current with the detailed changes in all the rules in regulations
A. Shares of Stock (common and preferred)
1. The trust was set up to convert from a revocable trust to an irrevocable trust at the time of her passing, 11/10/2014. Me and my 2 siblings are now the successor trustees.
2. She had some shares of stock in that trust at FIDO and their ownership was transferred to us in a like kind transfer of shares of the same stock in a new account at
FIDO in our name (DH and mine) which they required us to open for them to perform the transaction on 12/10/2014.
3. A friend of ours (an accountant) told us that our cost basis (for use in determining capital gains in any future transactions) of the shares would be the value of the stock
on the date of the transaction (ie. 12/10/2014) and that any gain or loss on the shares between 11/10 and 12/10 would be reported on the Irrevocable Trusts tax return.
We have been searching and searching through the documents on the IRS www page for any publications, regulations, forms or form instructions for information that
would confirm this and have had no luck so far. Specifically, we've searched through the 1040 forms, the related schedules as well as any instructions associated wtth
them and we've looked through form 706 as well as the instructions for that form and had no luck. We found references to inherited assets, but no leads to assets
acquired as proceeds from the liquidation of a trust.
We've also looked through publications 551 with no luck as well. Instructions for inheriting assets from an estate, but nothing covering assets received from a trust.
B. We also received some shares in some mutual funds (both stock funds and bond funds) and have a similar quandary.
Establishing our cost basis for these investments seems rather straightforward (if what our friend tells us is true), but we'd really like to find the IRS instructions, publication or code sections where this is explained because we want to make sure we report our taxes correctly for 2014 and any additional information we might be required to supply to support the amounts we use as well as support the decisions we made on how to report it will be so much easier to track down now versus some date in the future.
Thanks so much.
Any help or guidance will be appreciated.
BTW, DH was a licensed CPA back in the early 80's but hasn't practiced in around 30 years, so he's familiar with the terminology, but hasn't remained current with the detailed changes in all the rules in regulations