Cost basis choice on Computershare form, JRL Trust ownership transfer

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
ionball
Posts: 97
Joined: Wed Jan 31, 2018 12:17 pm

Cost basis choice on Computershare form, JRL Trust ownership transfer

Post by ionball » Mon Aug 06, 2018 7:32 pm

The grantor/trustor of a Joint Revocable Living Trust has recently deceased and I want to help the co-trustee take ownership of several stocks held at Computershare. The Computershare customer service representative instructed to use their "General Transfer Form". The last section of the form (#10) has four checkboxes, and instructs to choose one. I've ruled out "Private Sale" and "Gift". I'm not sure which of the remaining two choices would be correct, "Inheritance" or "No Change of Ownership (please specify)".

Ownership remains in the same Trust except the Trustee registration changes. On the other hand, the Inheritance option accounts for Date of Death which seems appropriate because I think the beneficiaries should get stepped up cost basis based on that date. Will the wrong choice create any problems when filing income tax returns with the IRS?

daveydoo
Posts: 1564
Joined: Sun May 15, 2016 1:53 am

Re: Cost basis choice on Computershare form, JRL Trust ownership transfer

Post by daveydoo » Sun Sep 02, 2018 2:42 am

I think you will need to call -- if one can even call Computershare. I do not like them, their interface, or their incredibly high fees. It's like the dark ages at the dawn of the internet.

I did successfully change a trustee on an individual stock held at Computershare a few years back. We just sold it this week (a few hundred shares of a single stock) and I see no cost basis information at all.

None of those choices seem like the right answer, right (?), if I'm reading correctly. So one of the trustors is still living? I don't know if there is a half step-up in the trust since the deceased was not the owner.

Posting in part for the bump...
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

Gill
Posts: 4590
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Cost basis choice on Computershare form, JRL Trust ownership transfer

Post by Gill » Sun Sep 02, 2018 7:34 am

The proper choice would be “inheritance” and there should be a full step up in basis.
Gill

Post Reply