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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36195
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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Husband and wife each own 50% of a family corporation.

Customer Question

Husband and wife each own 50% of a family corporation. Husband dies, does wife receive a fair market step up in basis for the stock she inherits from her husband? Corporation has only one asset with an easily determined marked value.
Submitted: 4 months ago.
Category: Estate Law
Expert:  Barrister replied 4 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney and will try my best to help with your situation. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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When someone passes away owning stock or other assets, they then receive a "stepped up cost basis" to fair market value when they are distributed to the heirs.

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So yes while wife's 50% of the asset basis would remain the same, the other 50% she inherits would be stepped up to fair market value so if she then sold it would reduce any potential capital gains taxes that might be due.

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thanks

Barrister