IRS Rule Change Should Have You Rethinking Your Irrevocable Trust appeared first on SmartReads CMS ... changes how the step-up in basis applies to assets held in an irrevocable trust.

Trusts can keep assets out of the gross estate or get a step-up in basis — but not both. Trusts with grantor trust provisions ...

Among the assets that aren’t affected by the step-up rule are retirement accounts—including 401(k)s, IRAs and pensions—and most assets in an irrevocable trust. What Is the Basis for Gifts?

To get the step-up in basis, the assets in the irrevocable trust now must be included in the taxable estate at the time of the grantor's death. That's the bad news.

An irrevocable trust can be treated as a grantor trust, ... then the estate-excluded assets will not get a step-up in basis for capital gains tax under Internal Revenue Code Section 1014, ...

Property, such as your home, held in an irrevocable trust 'that is not included in the taxable estate at death' will no longer receive a step-up in basis. Here’s why the wording of that is key.

Among the assets that aren’t affected by the step-up rule are retirement accounts—including 401(k)s, IRAs and pensions—and most assets in an irrevocable trust. What Is the Basis for Gifts?

In a revenue ruling issued Wednesday, the IRS confirms that the step-up in basis under Sec. 1014(a) does not apply to the assets held by an irrevocable grantor trust when the grantor dies if the ...

To get the step-up in basis, the assets in the irrevocable trust now must be included in the taxable estate at the time of the grantor's death. That's the bad news.