I’m looking for the same info and I’m not sure the answers given here accurately pertain to the OP’s question, which specified an IRREVOCABLE trust.
It’s my understanding there is NO STEP UP in cost basis when beneficiaries receive inheritance of stock which was part of an an irrevocable trust.
So (if the above is true information) keeping that in mind, is it better to sell stock right away and pay the tax, or transfer ownership to beneficiary and let them pay the tax when they sell in the future? Is there a tax benefit to leaving it in trust? Should beneficiaries leave the stock in trust and take periodic distributions but never actually sell the stock?
Thanks
