My grandmother has a stock account that has accrued approximately $40K in LT capital gains. If I, as the executor, liquidate these assets and distribute the cash to those inheriting, I assume that the capital gains tax would be paid by the estate. However, if I distribute the shares themselves, and allow the receiver to liquidate them, then I understand they would pay cap gains accrued from the day they took ownership. What would happen to the original $40K in LT Capital Gains? Does that still need to be paid by the estate?
