Your article – Avoid the heartbreak of inheriting a financial mess
I read your article on Richmond.com. Your answer appears to be putting your assets into a trust. Can you address the issue of not having the advantage of ‘step up’ of basis for assets held in a trust? For highly appreciated assets, this could result in very high tax bills upon disposal of the asset. I’d suggest a “transfer on death” (TOD) designation for brokerage and bank accounts be used. It avoids the need for probate. Simply delivering a certified copy of the death certificate to the bank/brokerage is all that need be done to have the assets moved per instruction on the TOD. With a TOD, you still enjoy the advantage of basis step up as of the date of death of the owner(s).
Terry Says
There is NO step-up for changing title of property into the Revocable Living Trust. And that trust allows your successor trustee to deal with the property if you are incapacitated — perhaps needing to sell it to pay for your care.
