Legal Question in Tax Law in California

Re: disolving a trust

If I understand what you are asking correctly, I think you are a bit confused. Most property owned by a decedent US citizen, steps up in basis at their death. Meaning, that the cost basis is the fair market value of the descendant on the date of their death. What social security number you use, has no bearing on this law. Essentially, as I understand your question, the answer is no... the asset's basis retains its character despite the social security number used. However, the preceding statement does not cover assets owned in an irrevocable trust that was created during the life the testator (deceased).

Closing a trust, especially if there is significant assets in it, is something that should generally be done with the assistance of professionals. It sounds like you already chose not to hire an attorney to assist you with this matter, so I would implore you, at the very least, seek the advice and assistance of a CPA who is qualified and experienced in handling these types of situations. I would also encourgage you to retain the services of an attorney who could review your specific situation and advise you further.

Re: disolving a trust

We would definately recommend not using the deceased's social security number.

It would appear the Settlor(s) have passed away, therefore, the stock must be transfered to a new owner with a new tax id number. If this was inhereted (a better way to transfer then gifting) then the date of death value must be used. It is irrelevant when the actual transfer occurs, the date of death value must still be used.

There could be offsets to show that the benficiaries received no value and therefore there is no tax to be had, but this would depend on the facts of your situation.

Our office specializes in probate, trusts and estates. Please feel free to learn a little more about us on our firm's website located at NO-PROBATE.com.

We can be reached through the site or at the address, phone and email provided hee on LawGuru.

Regards,

Scott Linden

Re: disolving a trust

this depends, upon other factors, on the type of trust. you should retain a tax attorney or CPA.