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As of the recent passing of my aunt, I became successor trustee of her estate (all in trust). As she and my uncle (who passed in 2007) had separate trusts, I also became successor trustee of his trust. Both trusts included multiple certificates of deposit and stock holdings.

I have already liquidated the CD holdings (all 28 of them!) and have started to distribute a portion of the funds to beneficiaries from the pair of "trust" checking accounts I set up with a local bank. I am in the process of transferring trusteeship of the various stock accounts.

From what I understand, the basis of the stocks in my aunt's accounts is determined by it's closing value on the date of her death (01/04/2016). This would make cap gains reporting pretty easy, and should be minimal depending on how quickly I cash out the stocks.

I'm wondering how I calculate the gains on the stocks in my uncle's accounts. My aunt was successor trustee until she passed, and, as I mentioned, I'm working on getting trusteeship transferred to me. I'm guessing that I calculate the basis for my uncle's stocks by using the closing price on the date of his death (08/23/2007). Accordingly, I assume that cap gains will be calculated from that date until the date I cash out the stocks. Does this sound correct?

Moving forward, can someone tell me how cap gains will be taxed on those stocks after I take over as trustee and liquidate them? My uncle's holdings were already recorded under the EIN established when he passed. My aunt's holdings are/will be recorded under the EIN I set up for her a few days after she passed. I assume there is a separate schedule for cap gains tax rates for stocks held in such trusts, but I can't seem to find any guidance online. I'm pretty sure that individuals get a big break before they have to pay cap gains depending on their income and that the rates are progressive as income increases. Is there anything similar for stocks held by an EIN? If such a schedule exists I doubt that it is as generous as the schedule for individuals, but I don't know.

If one of you financial guys can throw some info my way, I'd appreciate it. Thanks in advance.
 

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a dysgenic effect participant
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I wish I could help, but I’m just an observer. My family is going through a very similar scenario, with the only difference being that my mom was legally attached to all of her family member’s finances and investments for a decade before them passing. My dad has an accounting degree that he earned back when the abacus was cutting edge technology and my brother is a state bureaucrat tax fraud auditor or some such, so they are working the math. The rest of us are cut two tax free gift checks each year for the foreseeable future, a mom check and a dad check.

Either way I’m interested in seeing how this gets answered.
 

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From what I understand, the basis of the stocks in my aunt's accounts is determined by it's closing value on the date of her death (01/04/2016). This would make cap gains reporting pretty easy, and should be minimal depending on how quickly I cash out the stocks.

I'm wondering how I calculate the gains on the stocks in my uncle's accounts. My aunt was successor trustee until she passed, and, as I mentioned, I'm working on getting trusteeship transferred to me. I'm guessing that I calculate the basis for my uncle's stocks by using the closing price on the date of his death (08/23/2007). Accordingly, I assume that cap gains will be calculated from that date until the date I cash out the stocks. Does this sound correct?

Moving forward, can someone tell me how cap gains will be taxed on those stocks after I take over as trustee and liquidate them? My uncle's holdings were already recorded under the EIN established when he passed. My aunt's holdings are/will be recorded under the EIN I set up for her a few days after she passed. I assume there is a separate schedule for cap gains tax rates for stocks held in such trusts, but I can't seem to find any guidance online. I'm pretty sure that individuals get a big break before they have to pay cap gains depending on their income and that the rates are progressive as income increases. Is there anything similar for stocks held by an EIN? If such a schedule exists I doubt that it is as generous as the schedule for individuals, but I don't know.Thanks in advance.
I believe your aunt's basis is correct. Your uncle's, since he passed prior to 2010, may be based on the date of death or may be based on an alternate valuation date which I think is 6 months later. Use whichever is to your advantage.

I don't think there is any IRS difference in normal tax stuff and those of an EIN. I have both and have never noticed any difference.

I would recommend you talk with an estate/trust attorney. Most trusts allow the trustee to take a salary and use an attorney to help settle the trust.

Good luck.
 
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