Obtaining a Trust Accounting

############################# Video Source: www.youtube.com/watch?v=oQeTgUEu8iI

Whether you can sell stocks in a trust after death generally depends on the specific terms and conditions of the trust and the laws of the jurisdiction in which the trust was established. • FULL ARTICLE: https://rmolawyers.com/can-you-sell-s... • If the trust agreement allows for the sale of stocks, the trustee can sell the stocks as directed by the trust agreement. However, if the trust instrument does not explicitly allow for the sale of stocks, the trustee may need to seek court approval to sell the stocks. • Typically, after the death of a trust creator (also known as the grantor or settlor), the trust becomes irrevocable and the assets in the trust, including stocks, are managed by a trustee according to the terms of the trust document. When a trust is used as an estate planning tool, it will often call for the trustee to transfer all of the assets to the beneficiaries and then terminate the trust. • However, in some cases, the trust is not meant to terminate and the beneficiaries are simply to receive income from the trust. In this situation, the trustee has a fiduciary duty to manage the trust assets for the benefit of the trust beneficiaries, which may or may not include selling stock owned by the trust. • It is important to note that different jurisdictions have different laws regarding trusts and their administration, so it is best to consult with a trust attorney to determine the specific rules and procedures for selling stocks in a trust after the death of the grantor. • Can You Transfer Stock From a Trust To a Beneficiary? • Yes, as a trustee, you can transfer stock from a trust to a beneficiary without selling it if the terms of the trust allow you to do so. • If the trust instrument allows for the transfer of stock to a beneficiary, the trustee can transfer the stock as directed by the trust agreement. In some cases, the trust agreement may establish conditions that must be met before the stock can be transferred, such as reaching a certain age or obtaining a particular degree. • If the trust document does not allow for the transfer of stock, the trustee may need to seek court approval to transfer the stock to a beneficiary. • How Do You Transfer Inherited Stock from a Trust? • The process for transferring inherited stock from a trust to a beneficiary depends on the terms of the trust and the laws of the jurisdiction in which the trust was established. • Before attempting to transfer stock from a trust, the trustee should review the trust instrument to determine if the trust allows for the transfer of stock and what conditions, if any, must be met before the stock can be transferred. If the trust agreement allows for the transfer of stock, the trustee should follow the steps outlined in the document to transfer the stock to the beneficiary. This typically involves the transfer of the stock to the beneficiary’s existing brokerage account or setting up a new one. • Do Beneficiaries Pay Taxes On Inherited Stock? • No, beneficiaries generally will not have to pay taxes on inherited stock if they do not sell it. • In the U.S., there is no federal inheritance tax and only six states (Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) assess inheritance taxes at the state level. Plus, even in those states, many beneficiaries are exempt from paying. • Additionally, stocks that are passed through a will may be subject to estate taxes. However, these taxes are paid by the estate, not the beneficiaries, and can often be avoided through the use of a trust. • Therefore, the most important tax consideration for trust beneficiaries is usually the capital gains taxes they may incur when selling inherited stock. While capital gains are typically calculated by subtracting the original purchase price from the sale price, when a beneficiary inherits stock, the cost basis is “stepped up” to its fair market value on the date of the decedent’s death. • This means that if the beneficiary later sells the stock, the capital gains tax is calculated based on the difference between the fair market value at the time of inheritance and the sale price, rather than the original stock cost. Often, this results in a lower tax liability for the beneficiary. • Looking for legal representation? At RMO, we protect people like you everyday. • Learn more at: https://rmolawyers.com/who-we-represe... • Call (424) 320-9444 or email [email protected] • • Connect With RMO Lawyers: • / rmo-rahn-muntz-o'grady-llp • / rmolawyers • / probateandtrustlitigators • About RMO Lawyers: • RMO LLP serves clients in Los Angeles, Santa Monica, Orange County, San Diego, Kansas City, Miami, and communities throughout California, Florida, Missouri and Kansas. • Our founder, Scott E. Rahn has been named “Top 100 – Trust and Estate Litigation” by SuperLawyers, Trusts and Estates Litigator of the Year, and Best Lawyers in America for Litigation

#############################

New on site