How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

My mother died in May and I am trustee. She had a revocable

Customer Question

My mother died in May and I am trustee. She had a revocable living trust. We have sold her home as required and her bank and retirement accounts are now in my name. I am ready to distribute the proceeds to her heirs. My question is, what are the tax ramifications for these distributions? Do we have to consider the funds as income for 2015?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.



No, only actual items of income, such as interest, rents from property,etc.will be income.


The sale of the home might have created a capital gain, but not likely, because of the step-up in basis that assets received through inheritance receive

Customer: replied 1 year ago.
Thanks. What does "step-up in basis" mean?
Expert:  Lane replied 1 year ago.

When you sell a capital asset, (land, stock, a house) you will either have a gain or a loss or possibly (and your situation is where it happens the most) a break even situation ... Hang with me here and I'll give you an exMple

Expert:  Lane replied 1 year ago.

Capital gain = sales price MINUS basis


Basis is what you have invested IN the house ... purchase price plus maybe some improvements


\When assets are inherited. that basis is "stepped-up" to the fair market value of the asset as of the date of death of the decedent


So when someone passes it's very common for the sales price to be equal to it's basis (unless held long enough for prices to have risen since the date of death)

Customer: replied 1 year ago.
Expert:  Lane replied 1 year ago.

You're very welcome


If this HAS helped, and you If you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.



Customer: replied 1 year ago.
No problem. I appreciate your prompt assistance.
Expert:  Lane replied 1 year ago.

I appreciate ... Let me know if I can help again