Q: I received stock at the disullution of a trust. Do I get any step up in basis? Do I pay taxes on the full amount at sell

A: When you receive stock from a trust, the tax implications can vary depending on the specific circumstances. Here's a general overview, but please note that it's always best to consult with a tax professional for personalized advice.

1. Step-up in basis for inherited stock outside the trust:

When you inherit stock from someone who has passed away (like your father), you typically receive a "step-up" in cost basis to the fair market value of the stock on the date of the person's death. This means that if you sell the inherited stock, you'll only pay capital gains tax on the appreciation from the date of the original owner's death until the date you sell the stock.

2. Stock received from a trust:

The tax treatment of stock received from a trust depends on the type of trust and its terms. In some cases, the stock may receive a step-up in basis upon the death of the trust's grantor. However, this is not always the case.

3. Stock placed in a new trust:

When stock is placed in a new trust after the original owner's death, the tax implications depend on the terms of the new trust and how it was created. In some cases, the trust may receive a step-up in basis on the stock's valuation, while in others, it may not.

Given the complexity of your situation, it is strongly recommended that you consult with a tax professional or estate planning attorney who can review the specific details of the trusts and provide accurate guidance on the tax implications of the stock you received and the stock placed in the new trust.