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Is there a stepped-up basis from a trust?

Greta
Level 8

Deceased client left a trust to heirs. Do heirs get a stepped-up basis?

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TaxGuyBill
Level 15

It depends on the Trust.

Generally, a Revocable Trust would be stepped up and a Irrevocable Trust would not.  But then there are such as weird things as an Intentionally Defective Irrevocable Trust which allows the step up, so it can be tricky.

 

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TaxGuyBill
Level 15

It depends on the Trust.

Generally, a Revocable Trust would be stepped up and a Irrevocable Trust would not.  But then there are such as weird things as an Intentionally Defective Irrevocable Trust which allows the step up, so it can be tricky.

 

View solution in original post