Ask Terry Questions Successor Beneficiary

Successor Beneficiary

By Terry Savage on May 18, 2024 | Financial Planning / Retirement

As a successor beneficiary of a stock portfolio registered in a revocable trust,how report on tax returns

Terry Says

If you have a revocable living trust it uses YOUR social security number, and all taxable events (gains, losses on sales, dividends, etc.) are reported on YOUR income tax return.  The successor doesn’t come into play until you are incapable of acting as trustee or until you die.  If you are alive, but the trustee is acting on your behalf, the tax return is still in your name.  After your death, it is an estate tax return.

Bottom line:  The successor’s tax ID is not a factor in YOUR RLT.



a personal
finance question