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Is my basis of shares purchased by a family trust (after the grantor's death) the date the trust purchased the shares, or the date that the shares were distributed?

msthrifty — Sat, 01 Jun 2019 18:04:09 GMT

The trustee hired a firm to manage the trust, which bought several new investments in the 18 months that passed from time of death to the in-kind distribution. I had no access the to trust assets prior to distribution and dissolution of the trust.

" I had no access the to trust assets prior to distributi...

Anonymous_ — Sat, 01 Jun 2019 18:04:10 GMT

" I had no access the to trust assets prior to distribution and dissolution of the trust."

That fact is largely irrelevant but whether or not you actually purchased the shares from the trust is relevant. In that instance, your basis would be what you paid for the shares and your holding period would begin on the purchase date.

If this happened to be an in-kind distribution of shares to a beneficiary, then the beneficiary would have a carryover basis (i.e., would use the trust's basis as his/her own basis) and the holding period would start on the date the shares were purchased by the trust (i.e., tacking is permitted).

Thank you. Yes, this was an in-kind distribution to the...

msthrifty — Sat, 01 Jun 2019 18:04:11 GMT

Thank you. Yes, this was an in-kind distribution to the beneficiaries of the trust, at the time of dissolution of the trust by the trustee. I do not understand what you mean by "tacking is permitted" - could you explain?

Simple: the trust's holding period is "tacked on" to the...

Anonymous_ — Sat, 01 Jun 2019 18:04:13 GMT

Simple: the trust's holding period is "tacked on" to the period you held the shares.

Thank you!

msthrifty — Sat, 01 Jun 2019 18:04:14 GMT

Thank you!