Estate related questions


C

Chris

I'm not sure I've received proper advice WRT handling the
transfer/selling of estate assets and could use a little
conversation on the matter to get my bearings. The scenario
is an estate subject to federal estate tax, sole beneficiary
who is the executor and who is not a spouse. A few
questions...

There are stocks/funds which are still in the decedents
name. Some of these need to be sold prior to the alternate
valuation date, some after, to raise money for taxes. If I
understand things properly, anything sold or transfered
prior to the alternate valuation date will be valued as of
the date of the sale/transfer if you choose to use the
alternate date. Otherwise you use the date of death values
for the 706, correct?

In the case of assets held in an individual account still
under the decedent's name. It seems to me there are three
options... 1) sell the asset while it is under the
decedent's name, 2) have the asset/account converted to be
in the estate's name and then sell the asset, 3) transfer
the asset to the beneficiary and then sell it.

Is it correct that both options #1 and #2 are the same in
that any gain or loss relative to the value listed on the
706 will be taken by the estate and dealt with on the 1041?

In the case of option #3, is it correct that the beneficiary
will take the gain or loss on their 1040?

There is a JTWROS account created many years ago. The
decedent made all the contributions and the beneficiary
never received any proceeds. In the past, any activity on
the account was reported under the decedent's SS #. This
account hasn't been converted to be in the beneficiary's
name... it is still JTWROS. Distributions continue to be
issued in both people's names and those are dumped into the
estate checking account, right or wrong.

Is one option for the beneficiary to disclaim the right,
thereby converting the account to be just in the name of the
decedent? If that is done, is gain/loss relative to 706
value taken by the estate?

What if the surviving joint account holder sells something
in the JTWROS account while it is still JTWROS? Supposedly
the proceeds will be issued in both names, but who takes
gains/losses? With the decedent dead, will they be issued
in the SS# of the surviving joint account holder and thus
they would take them on their 1040? Would those
gains/losses be relative to the value on the 706 or are they
relative to actual cost basis?

I don't know how well I phrased the questions, but hopefully
that was well enough that someone can comment. Said would
be greatly appreciated. I really need to get things a
little clearer in my head before the next meeting with the
attorney.

Thanks in advance.
 
Last edited by a moderator:
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top