Are capital gains taxed at the same rate in a trust as in an individual return?
I can take an inheritance in cash or In-Kind.
If I take it in cash, the trust will sell the stocks. There will be a step up in basis to the value on the date of death. (Average of High and low). The trust will pay any taxes (at some rate) and then I get the result.
If I take it In-Kind, the stocks are transferred to my account. The trust pays no taxes. I receive the stocks and when I sell them, I will get the same step up in basis. I will pay taxes (at some rate) and keep the result.
My question is: Are the tax rates the same for the trust as for me as an individual?
Is it the same for long term capital gains and short term capital gains?
Thank you
