Sale of Inherited Mutual Funds

Forum|Forum|2 years ago
March 18, 2024
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We inherited a Mutual Fund account from aunt who died in March, 2010 but the funds were not transferred to us until Dec. 2010. At the time there were 7,500 shares and we have the value at the time of transfer. We just sold (12/4/2023) shares for the first time. I need to determine cost basis, which is value at time of transfer plus any reinvested dividends over the years, I assume. OR, since the brokerage says the shares sold were part of the shares that we initially inherited and not from later reinvested dividends, can I just determine the cost per share at the time we inherited and subtract from cost per share at time of sale to determine cost basis and profit?

JulieS

Yes, the basis of the mutual funds is the value on her date of death, unless an alternate valuation date was established by the executor.

Your broker is correct that if the funds sold didn't include any reinvested dividends, the basis is just the value at the time of death.

In doing your research, be aware that there may have been stock splits, or reverse splits that change the basis.

To find the value at the time of death, the broker (if it's the same broker), is your best resource. If you have to look elsewhere, there are lots historical stock value resources online.

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