Revocable Trust

Forum|Forum|4 years ago
December 16, 2021
2 replies
12 views

Client had a revocable trust, using her SSN. She passed away in October. Does the revocable trust always become irrevocable upon death? The trustee says the trust documents do not mention anything about distribution of assets.. Her will does state each of her 4 kids as beneficiaries.

One of the assets in the trust is a rental property. Does the rental property get a stepped up basis upon death?

Thanks

Jacquie

Lacerte Tax

This topic has been closed for replies.

IRonMaN

Level 15

Yes

Slava Ukraini!

BobKamman

Level 15

First, you get a copy of the trust and read it.

Most people with a living trust -- well, at least those who don't forget to put things into it -- have a "pourover" will, that names the trust as beneficiary. Then their kids would be named as beneficiaries of the trust, not of their probate estate.

But ya' never know...

Until you read the trust.

J

jlew1229Author

Level 5

I will try to get a copy of the trust to read. Thank you .....

If the trust is the beneficiary, would the stepped up basis still apply for the rental?

sjrcpa

Level 15

The trust would not be the beneficiary if it already owned the property.

The trust document have a section on administering the trust after the death of the grantor and what the duties of the Trustee are. There may or may not be distributions to be made.

The more I know the more I don’t know.

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