Dickson, TN asked in Tax Law for Tennessee

Q: Does property in an irrevocable trust get a step up in value when the creator dies?

It is not in his estate and has a different EIN tax id number.

In reply to the answer about step up at time the trust is funded. What if the trust is funded with shares of mutual funds or company stock . That is a transfer in ownership -- Not Cash. Then there is no capital gain or step up when funded. ??????

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2 Lawyer Answers

A: Consult a tax lawyer in your local community.

Anthony M. Avery
Anthony M. Avery
  • Tax Law Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: No, the step up in corpus basis occurs at the time of conveying the property into the Trust.

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