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- May 6, 2014
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Hi all,
I have a questions that I hope someone can assist with:
"Mary" set up an Individual brokerage account several years ago. For years trades were placed on this individual account. As Mary became older, her 3 children were added to the account as joint owners as a shortcut for setting up a Power of Attorney.
One month later, Mary passed away. All purchases made in the account were made when the account was solely in the Mary's name. What will happen to the cost basis of the account? Will all of it be stepped-up (because 100% of the account was contributed Mary), or will only her proportionate share (25%) receive a step up in basis?
Any help or reference to an IRS tax code would be much appreciated. Thanks!
I have a questions that I hope someone can assist with:
"Mary" set up an Individual brokerage account several years ago. For years trades were placed on this individual account. As Mary became older, her 3 children were added to the account as joint owners as a shortcut for setting up a Power of Attorney.
One month later, Mary passed away. All purchases made in the account were made when the account was solely in the Mary's name. What will happen to the cost basis of the account? Will all of it be stepped-up (because 100% of the account was contributed Mary), or will only her proportionate share (25%) receive a step up in basis?
Any help or reference to an IRS tax code would be much appreciated. Thanks!