Page 65 - Successor Trustee Handbook

Once you have received the closing letter, this will place you in a position to
make final distribution of the Trust to the beneficiaries or to Trust shares (“sub-
trusts”) to be set up for them (see the Chapter, “Making Distributions to the
Beneficiaries”). A copy of the closing letter and estate tax return (along with
any final agreed upon changes by the IRS) should be given to each of the
beneficiaries and to the income tax preparer for the Trust. The “stepped-up”
tax basis for depreciation of certain assets and for determination of capital
gains upon the future sale of assets will be set by the date of death values
accepted on the estate tax return, and this new basis may in turn reduce the
current and/or future income taxes of the Trust and the beneficiaries.

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