USA I have a cost basis step up question....

Sab

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Assets are jointly held, one owner dies and 1/2 of basis is stepped up. Assets are then moved into a trust account. The trustee (who was one of the original owners) then passes away. Is only his half of the basis then stepped up on those remaining assets or should all the assets be stepped up. The trust held the same assets that were originally jointly held.

Thank you.
 

Drmdcpa

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It depends. Upon the passing of the first, were some of the assets segregated to an irrevocable trust like a bypass or disclaimer trust. In general, if the assets belonged to the estate of the decedent there should be a step up.
 

Sab

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It depends. Upon the passing of the first, were some of the assets segregated to an irrevocable trust like a bypass or disclaimer trust. In general, if the assets belonged to the estate of the decedent there should be a step up.
The jointly held assets were moved into a revocable trust for the decedent. I was not sure if 1/2 of those assets could have a "double" step up.
 
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Drmdcpa

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Your statement does not make sense. A dead person cannot have a revocable trust.
 

Sab

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Your statement does not make sense. A dead person cannot have a revocable trust.
the securities were placed into his revocable trust after his wife passed, this was three years prior to his death. The trust has now become irrevocable upon his passing.
 

Drmdcpa

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It depends on whether you are talking a community property state and if not how the assets were titled.

But much of that should be moot since there should be a full step up on his passing for any assets that belong to his estate. Any assets in a revocable trust should have been part of his estate. Thus the irrevocable trust created upon his death gets the assets at fair market value on date of death.
 

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