[WSBARP] step-up in basis upon death - rationale

[Rod Harmon]

Would someone explain to me the rationale for the step-up in basis upon death for property in (the vast majority of) estates that have no estate tax liability?  It has always struck me as an undeserved windfall to the heirs.
And why wasn't its elimination included in the 2017 tax reform? Wouldn't it be an easily gained windfall to the US Treasury?

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com>
   rodharmon at msn.com<mailto:rodharmon at msn.com>




From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of RebeccaWiess
Sent: Monday, October 1, 2018 9:22 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>; solo-and-small-practice-section at list.wsba.org; creditor-debtor-section at list.wsba.org; wsbapt at lists.wsbarppt.com
Subject: Re: [WSBARP] Quit Claim Deed to Trust

I know I'm late to this topic, but it's an excuse to remind all that property in a trust does not get a stepped up basis when an owner dies. Family trusts as an estate planning tool can cause big time tax bills when the heirs sell low basis property out of the trust following a death.

Rebecca K. Wiess
421 24th Avenue East
Seattle, WA  98112
Phone 206 329-6638
rwiess at foxinternet.net<mailto:rwiess at foxinternet.net>

________________________________
From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Dave Culbertson
Sent: Friday, September 07, 2018 4:51 PM
To: solo-and-small-practice-section at list.wsba.org<mailto:solo-and-small-practice-section at list.wsba.org>; creditor-debtor-section at list.wsba.org<mailto:creditor-debtor-section at list.wsba.org>; wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>; wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Quit Claim Deed to Trust

Hello, Listmates.

I have a client who needs to transfer a parcel of land to her revocable trust (set up for probate purposes). I'm assuming this is like any other QCD, but thought I would check if there is any hidden wrinkle when doing a QCD from an individual to a trust. Thanks for any pointers.


Best Regards,

Dave Culbertson

The Law Office of Davisson Culbertson, PLLC
19909 Ballinger Way NE
Shoreline, WA 98102

Office Line: (425) 252-0300
Cell:  (206) 478-8134
FAX: (866) 867-7796

dculbertson at culbertsonlawoffice.com<mailto:dculbertson at culbertsonlawoffice.com>




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