No New Basis for Assets Held in Grantor Trust

In Rev. Rul. 2023-2, ___ I.R.B. ___, the Internal Revenue Service has held that assets held in an irrevocable trust that was a grantor trust do not receive a new basis under I.R.C. § 1014 on the death of the grantor if the assets are not included in the grantor’s gross estate for federal estate tax purposes.

[For a brief explanation of grantor trusts, see “Overview: Benefits/Costs of Grantor Trusts.”]

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