Midlothian, VA asked in Estate Planning for Virginia

Q: TOD and broker division

My father in law used a broker to invest monies. He passed away 01/28/2020 when stocks were at their height. When the broker divided up the estate, stocks were down substantially and the amount received does not reflect TOD Cost Basis. Now there was an “unrealized loss” I don’t understand. Thanks

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1 Lawyer Answer
Nina Whitehurst
Nina Whitehurst
  • Estate Planning Lawyer
  • Crossville, TN

A: The stocks obtained a step up in basis when your father in law died. This is a good thing. Now if an heir chooses to sell a stock when it's down, the heir will be able to deduct the loss on his or her tax return.

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