My understanding is that for a husband and wife, when the first spouse dies, half of the assets get a step up in basis. And assuming that the decedent's assets go to the surviving spouse, when the second spouse passes, then ALL of the assets that the survivor owns (including the deceased spouse's assets that the survivor inherited) are stepped up. Is this true or not?
Following on the above example, does the answer change if revocable trusts are involved? In other words, if both spouses have their separate trusts, and the first spouse passes, I believe the assets in their trust get stepped up. And assuming the surviving spouse has control over the assets of the first spouse to die and then the survivor dies, are the assets in the first-to-die's trust stepped up (again) as well as the assets in the second-to-die trust stepped up?
Following on the above example, does the answer change if revocable trusts are involved? In other words, if both spouses have their separate trusts, and the first spouse passes, I believe the assets in their trust get stepped up. And assuming the surviving spouse has control over the assets of the first spouse to die and then the survivor dies, are the assets in the first-to-die's trust stepped up (again) as well as the assets in the second-to-die trust stepped up?
Statistics: Posted by ChiefB — Mon Dec 09, 2024 7:39 am — Replies 2 — Views 190