Q: Does the cost basis step-up for mutual funds in a revocable living trust upon the death of trustees?
I am the successor trustee for my parents' revocable living trust. Both parents are now deceased as of last week. In speaking to one mutual fund I was told because the trust has always had its own EIN this may preclude the basis step up when the funds are divided as per the trust instructions. The customer service agent said the use of the EIN for past tax returns could make it be considered an irrevocable trust.
A:
The trust is either revocable or irrevocable on its terms not based on the use of an EIN.
IRS customer service reps are complete morons.
Hire an attorney.
1 user found this answer helpful
A: Under most situations in Florida a revocable trust becomes irrevocable when the grantors are deceased. However, the trust document itself may have other provisions.
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