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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15595
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a Schwab acct. that was opened as a joint acct. with

Customer Question

I have a Charles Schwab acct. that was opened as a joint acct. with my significant other. We each put in 3000 and over the years he added to the acct. He recently died and the acct. is now 63,000. It was set up as rights of survivor. The brokerage firm wants to know if I want to do a step up on all or part of the acct. I am not sure what the rules are for tax purposes?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Not that I know of.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my response.

A step up would mean that the portion of the account you inherited would be set at current market value. Should you sell assets from the account your gain may be lessened by the use of the step up to current value instead of the cost amounts when the account was added to.

You would pay less tax on a sale of stock because your gain would be less.

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