@greggd29 wrote:
How about the SAME question, for an Irrevocable Trust? Is stepped up basis allowed?
Actually, it depends. For the stepped-up basis to apply to any assets acquired from a decedent, the assets must be includible in the decedent's gross estate. IRC §1014(b)(10)
Assets held in a grantor trust are typically includible in the grantor's gross estate at the death of the grantor. Irrevocable trusts are not typically grantor trusts but they can be. Therefore, it is critical to determine whether the trust, although irrevocable, is a grantor trust (or partial grantor trust).
