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My mother passed away this year and had a revocable trust…

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My mother passed away...

My mother passed away this year and had a revocable trust which I, her son have been the trustee. Her only income had been a pension and social security. She has $270,000 in unrealized capital losses ( a bad stock). I, and my seven brothers are equal beneficiaries in the Trust Estate. The trust reads, "Upon the death of the Settlor, the Successer Trustee shall distribute the rest, residue and remainder of the Trust estate as follows:" and then goes on to say 1/7th to each of us. My question is, is their a way for each of us to "inherit" 1/7th of that $270,000 capitol loss?

Submitted: 4 months ago.Category: Tax
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Answered in 6 minutes by:
11/27/2017
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,719
Experience: Taxes, Immigration, Labor Relations
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Your question - is their a way for each of us to "inherit" 1/7th of that $270,000 capitol loss?

Unfortunately for your situation - that is NOT possible...

Carried forward capital losses may be ONLY used on the decedent's final tax return and are not passed to the trust.

Upon the death - a revocable living trust trust which was disregarded while the grantor was alive - becomes an irrevocable trust and treated as a separate taxing entity.

The trust may not use any capital losses of the decedent.

Sorry if you expected differently.

Let me know if you need any help with reporting.

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