Toller <
wadelippman@gmail.com> wrote:
A few years back I received money and stocks from a Crummy Trust.
Is the basis for the stock the trust's basis, or the value at
which I received it?
I sorta inherited it, so there should be a new basis.
But I was sorta gifted it when the money went into the trust, so
it should be the trust's basis. Which is right?
It depends. A CrummEy trust (named after the people who opposed the
IRS in court, not the quality of the trust) is a grantor trust.
Normally the beneficiary is considered the grantor to the extent of
gifts given to the trust that could have been withdrawan - so that
portion of the trust is considered to have belonged to the
beneficiary pretty much all along. Most Crummey trusts really have
only a life insurance policy and not much if anything more. In that
case there's really nothing to get a stepped up basis in.
On the other hand some Crummey trusts have assets that generate
income, and that income is used to pay the insurance premiums. To
the extent that income might be able to pay insurance premiums, then
the person who donated that asset is considered the grantor. If
that's your situation, then there is a stepped up basis on that
particular asset when the person who contributed it to the trust
does.
Unfortunately no one can really give you a good answer without a lot
more information including knowing exactly what the trust says. You
need to take the trust to a local CPA or Enrolled Agent, who can get
all the necessary information and only then be able to give you a
reliable answer.
--
Stu
http://DownToEarthLawyer.com
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