Liquidating inherited stocks

That means you can't cash out the account until you've transferred it into your name.

Life insurance policies typically pay off with a check to each beneficiary. When someone sells—or, if you're lucky, gives—you a car, the title is transferred to you, making you the owner.

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The value of inherited stocks is determined by the date of death.

Generally, the price is the market closing price on that date.

You're inheriting your loved one's investments—not money.If the person dies on a day the stock market is closed, the value reverts to the last closing price before the death.Estate tax law allows the executor of an estate to choose an alternative date, which will be six months after the date of death.But if the stock were valued at 5 a share, the estate must pay tax on 0,000 -- a total of ,500 -- before the shares can be distributed to the beneficiaries.It's impossible to guess what tax rate might be imposed on estates after 2012.The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.For example, if your dad bought 100 shares of Get Rich Quick in 1951 for each, his tax basis was

You're inheriting your loved one's investments—not money.

If the person dies on a day the stock market is closed, the value reverts to the last closing price before the death.

Estate tax law allows the executor of an estate to choose an alternative date, which will be six months after the date of death.

But if the stock were valued at $105 a share, the estate must pay tax on $250,000 -- a total of $87,500 -- before the shares can be distributed to the beneficiaries.

It's impossible to guess what tax rate might be imposed on estates after 2012.

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You're inheriting your loved one's investments—not money.If the person dies on a day the stock market is closed, the value reverts to the last closing price before the death.Estate tax law allows the executor of an estate to choose an alternative date, which will be six months after the date of death.But if the stock were valued at $105 a share, the estate must pay tax on $250,000 -- a total of $87,500 -- before the shares can be distributed to the beneficiaries.It's impossible to guess what tax rate might be imposed on estates after 2012.The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.For example, if your dad bought 100 shares of Get Rich Quick in 1951 for $10 each, his tax basis was $1,000.If you sell the stock a week after his death at $21 a share, your capital gains would be only $650.If an executor filed a tax return on an estate that included your shares, it's important to know which valuation date was used so you can figure your tax basis.Deciding the value of an estate determines whether -- and how much -- tax will be paid before the estate is distributed to the heirs.Part of that process also determines whether -- and how much -- capital gains tax will be paid in the future by persons who inherit stocks.

,000.If you sell the stock a week after his death at a share, your capital gains would be only 0.If an executor filed a tax return on an estate that included your shares, it's important to know which valuation date was used so you can figure your tax basis.Deciding the value of an estate determines whether -- and how much -- tax will be paid before the estate is distributed to the heirs.Part of that process also determines whether -- and how much -- capital gains tax will be paid in the future by persons who inherit stocks.

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