This scenario has a couple moving parts, and I realize I may need a CPA here, but I thought I would see what the ER community thinks of this one...
My dad had his money & mutual funds in a Revocable Trust which he was the trustee of. Now that he passed, I am the trustee and the money was moved into an Irrevocable trust with its own tax ID.
1) does the cost basis step up when the funds were moved to the Irrevocable Trust? I read something that says it does, but Schwab didn't step up the cost basis. Or does the cost basis only step up when the beneficiaries receive the shares?
2) for whatever reason, my brother has not opened an account where I can transfer the funds to. Why? Who knows. Anyway, if I sell the funds in the Irrevocable trust in 2020, those sales go on a separate tax form correct?
My dad took his $40k IRA distribution and around $14k in Soc Sec in 2020 under his social security number. My concern is reporting under his tax ID will incur more taxes than necessary.
3) if my brother will not open an account and he's due $200k, with a cost basis of $30k, I should have every right to hold back money for taxes on the $170k gain I would think?
My dad had his money & mutual funds in a Revocable Trust which he was the trustee of. Now that he passed, I am the trustee and the money was moved into an Irrevocable trust with its own tax ID.
1) does the cost basis step up when the funds were moved to the Irrevocable Trust? I read something that says it does, but Schwab didn't step up the cost basis. Or does the cost basis only step up when the beneficiaries receive the shares?
2) for whatever reason, my brother has not opened an account where I can transfer the funds to. Why? Who knows. Anyway, if I sell the funds in the Irrevocable trust in 2020, those sales go on a separate tax form correct?
My dad took his $40k IRA distribution and around $14k in Soc Sec in 2020 under his social security number. My concern is reporting under his tax ID will incur more taxes than necessary.
3) if my brother will not open an account and he's due $200k, with a cost basis of $30k, I should have every right to hold back money for taxes on the $170k gain I would think?