taxes on trust distribution

I will soon receive a significant amount from a Crummey Trust. The trustee says I have a choice of taking the securities or having them cashed in and taking the cash. She says I will have to pay income tax on the significant realized gain if I take the cash. However she cautions me that no broker is likely to accept some of the securities. I have checked and that is true; none will take "HSBC Bank USA NA Tax Exempt Inc Fund".
So two questions... 1) Is that correct about having to pay taxes on realized gain if I take cash? I thought inheritances were tax free, but maybe a trust is different. 2) I left a voice mail asking if I can have her sell the single nontransferable security and then the other securities transferred, but haven't received a reply. Is there some reason reason that can't be done?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Who is holding the securities now? Why can't they continue to hold them after you take possession of them?

Technically a Crummey Trust isn't an inheritance. It was a series of gifts made over time, and you were the owner (for tax purposes) on each gift from the time it was made. So you get no step-up in basis based on the death of whoever made the gifts, because the gifts were made during lifetime rather than at death.

Not that I am aware of. But it's up to the individual stock broker what they will accept and what they won't. If the current broker won't take it in an account for you, look around to see if you can find someone who will.
--
Stu
http://DownToEarthLawyer.com
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 7/19/14, 7:47 PM, Troubled wrote:

Over and above what Stuart said.... are you sure about that HSBC fund name you posted? I was unable to find any HSBC mutual fund by that name. If it is a money market fund, it does not matter as there won't be a gain on liquidation.
--
Alan
http://taxtopics.net
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

HSBC has a bunch of proprietary funds they only sell to their investment clients. (I happen to know about them because I'm one of their clients.) I think this is an old one that isn't open to new investors.
--
Regards,
John Levine, snipped-for-privacy@iecc.com, Primary Perpetrator of "The Internet for Dummies",
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 7/20/14, 9:25 PM, John Levine wrote:

...but even proprietary funds are publicly listed. I wouldn't think that a closed fund would no longer be listed.
--
Alan
http://taxtopics.net
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Saturday, July 19, 2014 9:47:36 PM UTC-4, Troubled wrote:

The trustee finally got back to me. DTAX is something only available to their trust department; it can't be transferred to anyone. Great.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.