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Subject Author Date
Stepped up basis Edward 04-16-2006
Posted by Edward on April 16, 2006, 11:45 pm
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 My mother contracted MS in 1968. I was two years old. My
father took very good care of my mother her until she her
death in 1999. When my mother died, my father took stepped
up basis and liquidated most stocks and bonds. Given the
market dive, this was a brilliant move.

In the early 70's he began a relationship with another woman
with whom he had my brother. We have all been on excellent
terms and still are. He married my step-mother shortly after
my mother died and reinvested everything. My father passed
away in January. His will left my step-mother everthing.

The problem is that he held onto some stock given to him by
my mother's father as a wedding present. He never put my
step-mother's name on the stock. Her accountant says she
gets my father's basis but no step-up because her name is
not on the stock.

I say she gets stepped up basis.

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Posted by Herb Smith on April 17, 2006, 12:35 pm
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 Edward wrote:

> My mother contracted MS in 1968. I was two years old. My
> father took very good care of my mother her until she her
> death in 1999. When my mother died, my father took stepped
> up basis and liquidated most stocks and bonds. Given the
> market dive, this was a brilliant move.
>
> In the early 70's he began a relationship with another woman
> with whom he had my brother. We have all been on excellent
> terms and still are. He married my step-mother shortly after
> my mother died and reinvested everything. My father passed
> away in January. His will left my step-mother everthing.
>
> The problem is that he held onto some stock given to him by
> my mother's father as a wedding present. He never put my
> step-mother's name on the stock. Her accountant says she
> gets my father's basis but no step-up because her name is
> not on the stock.
>
> I say she gets stepped up basis.

ALL of the assets in your father's estate get adjusted to
FMV on date of death. The accountant is wrong.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill on April 17, 2006, 12:35 pm
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noemail@here.com (Edward) posted:

> My mother contracted MS in 1968. I was two
> years old. My father took very good care of my
> mother her until she her death in 1999. When
> my mother died, my father took stepped up
> basis and liquidated most stocks and bonds.
> Given the market dive, this was a brilliant
> move.
> In the early 70's he began a relationship with
> another woman with whom he had my brother.
> We have all been on excellent terms and still
> are. He married my step-mother shortly after
> my mother died and reinvested everything. My
> father passed away in January. His will left my
> step-mother everthing.
> The problem is that he held onto some stock
> given to him by my mother's father as a
> wedding present. He never put my
> step-mother's name on the stock. Her
> accountant says she gets my father's basis
> but no step-up because her name is not on
> the stock.
> I say she gets stepped up basis.

Tell her to get a new accountant. FWIW, I agree with you:
As the inheritor, she gets a stepped-up basis -- and it has
nothing to do with whose name was on the stock!

Bill

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by ed on April 17, 2006, 10:35 pm
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The accountant is wrong. The value (of everything he owns)
is stepped-up in basis upon his death.

As an aside, and not OT, as your father he should have put
YOUR name on the stock because it was from your mother's
father, as a gift to him, and should have been passed on by
him to you, not your step-mother ==== sort of like "family"
heirlooms going to real descendants instead of inlaw's
relatives. Good reason for a trust upon remarrying.

Also OT. I presume you realize your stepbrother will
inherit all the assets your father accumulated prior to his
marriage to your step-mother ( per his "brilliant move" in
1999), or do you think your stepmother will will them all to
you instead of her son ( or current husband)?

ed

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Edward on April 18, 2006, 12:15 am
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> The accountant is wrong. The value (of everything he owns)
> is stepped-up in basis upon his death.

After reading other responses, I see how out-to-lunch her
accountant is.

> As an aside, and not OT, as your father he should have put
> YOUR name on the stock because it was from your mother's
> father, as a gift to him, and should have been passed on by
> him to you, not your step-mother ==== sort of like "family"
> heirlooms going to real descendants instead of inlaw's
> relatives. Good reason for a trust upon remarrying.
>
> Also OT. I presume you realize your stepbrother will
> inherit all the assets your father accumulated prior to his
> marriage to your step-mother (per his "brilliant move" in
> 1999), or do you think your stepmother will will them all to
> you instead of her son (or current husband)?

There's a lot more to this. My father paid for my education
and set aside other money for me. He did the same for my
brother. So what she does with her money is her business.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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