Basis for stock received from Crummy Trust?

I received a distribution of stock from a Crummy Trust. I assume my basis is the same as the Trust's, but do not know that for sure.

Reply to
Frustrated
Loading thread data ...

A Crummey trust is necessarily a grantor trust, and the beneficiary is treated as the grantor. So the trust doesn't have a basis in the stock, the beneficiary (I assume that's you) does.

So the basis will depend on where the stock comes from. Was it purchased by the trust? Or was it gifted to the trust? If gifted, was it a gift from someone who was alive at the time? Or was it a gift distributed as the result of the prior owner's death?

Reply to
Stuart O. Bronstein

Money was given to the trust and used to pay premiums on life insurance. When that was paid out on the death of the person who established the trust, it was used to buy stocks. Years later it was distributed to the beneficiaries.

Reply to
Frustrated

The basis will be what was paid for the stock by the trust.

Reply to
Stuart O. Bronstein

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.