Moving investment assets to a living trust brokerage account

alex60 · ‎October 19, 2020

Hi,

My wife and I recently formed a revocable living trust, and we are in the process of moving our assets into that trust. Each of us have an individual brokerage account with some assets (RSUs), and we also have a joint brokerage account where we do some additional investing (basic stuff like ETFs).

We now created a new living trust brokerage account, where we are owners of the account as trustees of our trust. We want to move the assets from our joint account, as well as each of our individual accounts, into this new trust brokerage account.

Will moving these investment assets into our trust account trigger a taxable event or change the cost basis for our securities?

And more broadly, are there any tax implications of moving assets from our individual accounts into trust accounts?

Thanks!

Alex

Critter-3 · ‎October 19, 2020

Ask your broker ... but retitling an account is not usually a taxable event since you don't SELL anything.

Anonymous · ‎October 19, 2020

if the grantor, the person putting the assets into the trust, has the power to revoke the trust the IRS says you have what is referred to as a grantor trust. in such a case a grantor tax return would be required if the trust used an EIN rather than the grantor's SSN. in essence, a grantor trust is like a disregarded entity. nothing has really changed for tax purposes.

so the answer to your questions is no

Will moving these investment assets into our trust account trigger a taxable event or change the cost basis for our securities?

And more broadly, are there any tax implications of moving assets from our individual accounts into trust accounts?

Moving investment assets to a living trust brokerage account

Investors & landlords

Investors & landlords