re: Capital Gains at Death

quote:

---

I guess it makes sense this way, it just makes some assets inherited almost unsellable.

My grandfather had 200 shares of XOM when he retired in 1968- my mother inherited 1600 shares (6400 total shares divided by 4 kids)in 2005 when he died. So if she sold her stock now, she'd pay 15% on 1550 shares, then 15% on the difference between what he paid and what the stock is worth now on the remaining 50 shares? Is that right?

---

Eghh, not sure how you are coming up with these numbers.

Keeping track of the cost basis is no more difficult for heirs than it is for people who aquire stock multiple times over a period of time. Your grandfather would have had to know his cost basis for tax purposes if he sold, so your mother should be able to find it as well.

In your example, your mother would inherit the cost basis that your grandfather had. Cost basis for stock is generally quoted as a whole, lump-sum, but in reality it can be broken down to a per share number. Get that number and your mother can pay the taxes.

As for the OP, my take is similar to Russian's. If I buy XOM @ $100/share, that cost basis will remain for those shares until someone sells them. The seller will pay the taxes.

I often see clients who hold their stock assets longer than they intended because they are pressued by their heirs. Heirs are sitting around waiting for death so they can sell mom's Exxon stock for themselves. There is a problem with that IMO.