Question
Sale of a house by Trustee after Grantor was declared incapacitated but before his death
Facts:
Revocable Trust was set up by husband and wife on 12/19/2001, which included their personal residence.
Wife, Grantor, passed away in 2018.
Husband, Grantor, was declared incapacitated in Jan 2022.
House was sold on 7/12/2022 and TIN was obtained by Trustee.
Questions:
When is the Trust considered an "Irrevocable Trust"?
Can the Trust use a 6/30/2023 tax year based on the date the TIN was obtained?
Does the House receive a stepped-up tax basis for Tax Purposes?
Thanks!
