Legal Question in Wills and Trusts in Texas

I've found several suggestions on line to make the election for a Revocable Living Trust to be a Qualified Trust for tax purposes ( to be certain a home in the trust gets a step-up basis after death). However, they suggested that a Form 706 be filed to make this election and the IRS says if one is filed, they will send it back. The IRS website says a new form will be out soon. Do you know anything about this election or the new form?


Asked on 10/23/10, 1:04 pm

1 Answer from Attorneys
Arthur Geffen Arthur H. Geffen, P.C.

Not sure exactly what sources you are using, but .. if you die this year, there is no step up in basis, only a carryover basis since there is no estate tax. In years when there was a step up in basis, there is/was no requirement to file a 706. You should contact a lawyer who knows what they are doing before you create a giant mess that will cost you more to fix.

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Answered on 10/28/10, 1:33 pm


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