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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > estate tax
Expert: John Kirk, CPA
Date: 9/18/2008
Subject: estate tax
Question
My grandmother died in 1976, leaving a bypass f/b/o trust set up for her grandchildren. My mother is entitled to income, and if needed, principle. At some point the trust gets distributed. When it does, are the stocks valued at date of death or date of purchase? Thanks for any help. William
Answer
I assume by a bypass trust you are referring to an AB trust where your grandmother set up a trust for your mother and a trust for the grandchildren. Or did she create a pour over trust where the corpus of your grandmother went into a trust for your mother and at her death the trust splits into separate trusts for the grandchildren?
The stock should be valued on the fair value at date of death, not purchase price.
John Kirk, CPA
www.johnkirkcpa.com
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