When spouse dies what portion of joint stock is stepped-up?
Question:
Answer:
For stock purchased jointly, your wife would receive a stepped-up basis for your 50% ownership. The basis on her 50% would remain the same. If you have been purchasing new stock over time, this becomes more complicated as you need to keep records of which stock to sell (oldest purchases sold first takes advantage of lower capital gains tax - however, they would also have the largest appreciation and highest realized gain).
The step-up and gains would not matter until she sold the stock.
The basis step-up comes in handy if you have experienced considerable appreciation in the stock in which you invested.
To get more detailed help, you can work with a financial planner or estate planner to advise you on this matter.
Ron, ChFC
That is a good question. I may be incorrect, but I believe the answer is none. They are jointly owned. Therefore the cost basis is the same for all investments. ie what they were purchased for.
More Questions & Answers...