Q: My grandfather left money in trust for his two daughters.
Mom's share of the trust dissolves on my mother's death and then is divided between me and my siblings. Do we have to pay a lot of taxes when that happens? Is there any way to avoid it?
A: This depends on what type of tax you are asking about and the values of your inheritance. In any event, you will get a stepped up basis to your mother's eventual date of death. You are wise to consider this now while you have time to plan for it. You and she should sit down with a lawyer and have your mother's trust reviewed, as well as what assets it holds.
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