Estate, trustee duty and stock basis step-up not done

Forum|Forum|4 years ago
April 4, 2022
1 reply
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Decedent in 2021.

Trustee opens an account (with Schwab) and transfers stocks owned by Decedent into it. (This Schwab account is in the EIN of the estate.)

Schwab lists missing tax basis on the 1099. (And one stock has a basis of 0 which I need to understand.)

Now I'm wondering about determining the step up to FMV for these stocks. Does the trustee usually direct the custodian to do it? Does the CPA determine the FMV? (And,

I'm going to ask the Trustee to request an extension.

Lacerte Tax

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Best answer by BobKamman

Full-service brokers (not Schwab) usually do it if you ask. Schwab is used as custodian by many "financial planners" who may provide that service. Otherwise, the trustee/PR does it by finding a website with historical stock prices and figuring the average of high/low for the date of death. Hoping the market was open that day.

BobKammanAnswer

Level 15

Full-service brokers (not Schwab) usually do it if you ask. Schwab is used as custodian by many "financial planners" who may provide that service. Otherwise, the trustee/PR does it by finding a website with historical stock prices and figuring the average of high/low for the date of death. Hoping the market was open that day.