Taxes on stock transfer

Forum|Forum|11 months ago
April 14, 2025
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Parents hold stock in their trust. Dad passed away. Mom needs to sell the stock. First, the stock needs to be transferred from the trust to mom. When she sells it will it be a short or long term capital gain. Held for 35 years in trust.

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DianeW777

It should be capital gain with a long term holding period depending on facts and circumstances. The details, could mean that the stock might be considered a short term sale to your mother.

Even though the stock was in the trust, it depends on who is considered the owner of the stock. It may mean the ownership was transferred to the trust, in which case the trust should sell the shares and then distribute the money to your mother. You should check with a tax attorney who is an expert in trusts and estates. Also check the documents used to establish the rules of the trust.

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