February 10, 2021 9:33 AM
last updated February 10, 2021 9:33 AM
My mother-in-law died last year after some conflict with the mutual fund company holding her account the mutual fund company finally recognized her son as the trustee of her account. If he redeems the fund and distributes the proceeds are the heirs subject to capital gains taxes?
February 11, 2021 4:24 PM
No, you will not have to pay capital gains on inherited mutual funds. The FMV going forward will be the price at the date of death.
See page 9, right hand column for information on Inherited Property.