Tag Archives: A cautionary note about capital gains

A cautionary note about capital gains

Warning: You can owe capital gains taxes even if your estate doesn’t owe estate taxes. How does this unwelcome surprise happen? Let’s look at an example: Dad died last year. Mom died 10 years ago, before Dad. They had “A/B trusts,” which were recommended to them by their lawyer. The “A Trust,” called the Survivor’s Trust, belonged to Dad, and the “B Trust,” called the Decedent’s Trust, belonged to Mom, because she died first. Mom owned the house and stocks at her death 10 years, which have steadily increased in value, even after Dad’s death. Problem: Even though Mom had …

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