I'm not sure I've received proper advice WRT handling the transfer/selling of estate assets and could use a little conversation on the matter to get my bearings. The scenario is an estate subject to federal estate tax, sole beneficiary who is the executor and who is not a spouse. A few questions... There are stocks/funds which are still in the decedents name. Some of these need to be sold prior to the alternate valuation date, some after, to raise money for taxes. If I understand things properly, anything sold or transfered prior to the alternate valuation date will be valued as of the date of the sale/transfer if you choose to use the alternate date. Otherwise you use the date of death values for the 706, correct? In the case of assets held in an individual account still under the decedent's name. It seems to me there are three options... 1) sell the asset while it is under the decedent's name, 2) have the asset/account converted to be in the estate's name and then sell the asset, 3) transfer the asset to the beneficiary and then sell it. Is it correct that both options #1 and #2 are the same in that any gain or loss relative to the value listed on the
706 will be taken by the estate and dealt with on the 1041? In the case of option #3, is it correct that the beneficiary will take the gain or loss on their 1040? There is a JTWROS account created many years ago. The decedent made all the contributions and the beneficiary never received any proceeds. In the past, any activity on the account was reported under the decedent's SS #. This account hasn't been converted to be in the beneficiary's name... it is still JTWROS. Distributions continue to be issued in both people's names and those are dumped into the estate checking account, right or wrong. Is one option for the beneficiary to disclaim the right, thereby converting the account to be just in the name of the decedent? If that is done, is gain/loss relative to 706 value taken by the estate? What if the surviving joint account holder sells something in the JTWROS account while it is still JTWROS? Supposedly the proceeds will be issued in both names, but who takes gains/losses? With the decedent dead, will they be issued in the SS# of the surviving joint account holder and thus they would take them on their 1040? Would those gains/losses be relative to the value on the 706 or are they relative to actual cost basis? I don't know how well I phrased the questions, but hopefully that was well enough that someone can comment. Said would be greatly appreciated. I really need to get things a little clearer in my head before the next meeting with the attorney. Thanks in advance.