irrevocable trust asset received and then willed to children

[Mountain_Business1]

I received stocks from an irrevocable trust.  If I sell the stocks now I have been advised that they would not have a stepped up stock basis.  If I never sell the  stocks received from the trust, then will the stocks that are now in my revocable trust to my children, when I pass and my children inherit the stocks, will they be taxed on a stepped up basis?  The stock was transferred from the trust to my brokerage account.

[tagteam · Accepted solution]

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@Mountain_Business1 wrote:

If I never sell the  stocks received from the trust, then will the stocks that are now in my revocable trust to my children, when I pass and my children inherit the stocks, will they be taxed on a stepped up basis?  

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Yes, if the stocks were distributed to you in-kind from the trust (i.e., you received the shares), then the shares will receive a stepped-up basis (per Section 1014) provided they are included in your estate when you pass.