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"...any situations in which an individual or a trust could take more than a $3,000 capital loss carry forward?"
Capital loss carryovers are first netted against capital gains and, if capital losses exceed capital gains thereafter, up to $3,000 of capital losses may be applied against other income. The balance of losses, if any, is carried forward to be applied in subsequent tax years.
"What happens is someone dies with a carry forward?"
Any capital losses (including capital loss carryovers) can
be deducted only on the decedent's final
income tax return. Unused capital losses cannot be deducted on the estate's income tax return. In short, the loss carryforward disappears.
See https://www.irs.gov/publications/p559#en_US_2018_publink100099706
See also Rev. Rul. 74-175:
...the business loss and the capital loss sustained by the decedent for the
period ending with the date of his death are deductible only on his
final income tax return. Thus, no part of such net operating loss or
capital loss is deductible by the decedent's estate or carried over to
subsequent years....
"...any situations in which an individual or a trust could take more than a $3,000 capital loss carry forward?"
Capital loss carryovers are first netted against capital gains and, if capital losses exceed capital gains thereafter, up to $3,000 of capital losses may be applied against other income. The balance of losses, if any, is carried forward to be applied in subsequent tax years.
"What happens is someone dies with a carry forward?"
Any capital losses (including capital loss carryovers) can
be deducted only on the decedent's final
income tax return. Unused capital losses cannot be deducted on the estate's income tax return. In short, the loss carryforward disappears.
See https://www.irs.gov/publications/p559#en_US_2018_publink100099706
See also Rev. Rul. 74-175:
...the business loss and the capital loss sustained by the decedent for the
period ending with the date of his death are deductible only on his
final income tax return. Thus, no part of such net operating loss or
capital loss is deductible by the decedent's estate or carried over to
subsequent years....
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