Legal Question in Wills and Trusts in Kentucky

Trust willed to Grandchildren upon death of Trustor

Grandfather has trust which states it is to be divided among the six grandchildren upon his death. There is no will, just the trust. The trust is funded by 11 different stock holdings. Can these be sold and then divided equally with minimal to zero tax, since we are assuming it is inheritance or a death benefit? If it is subject to tax, approximately what percentage is taken out? Is there any way to get the money out now without paying excessive taxes?


Asked on 6/30/03, 8:26 pm

1 Answer from Attorneys
D. Domanovic D. Domanovic, Atty.

Re: Trust willed to Grandchildren upon death of Trustor

If the trust is revocable the securities will be valued at the stepped up basis at the time of death. So, if you sell the stock after grandad's death...your cost basis will be the date of death value. If you sell the same day then there is no gain or loss.

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Answered on 7/01/03, 8:31 am


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