Steve Akers, Senior Fiduciary Counsel, Southwest Region, Bessemer Trust, has made available for download his summary of legislation enacted on July 31, 2015, which requires consistency of basis with estate tax values and information reporting.  The abstract for Mr. Aker’s full report reads as follows:

Legislation enacted on July 31, 2015 adopts provisions that have been proposed regarding basis consistency. Recipients of assets from a decedent must use the values of assets that were used for estate tax purposes to determine the basis of the assets under new §1014(f). In addition, executors must provide information statements to the IRS and to the estate recipients about the values of estate assets (new §6035). Penalties may be imposed if the required information statements are not furnished to the IRS and to estate beneficiaries. The new provisions apply to estate tax returns filed after July 31, 2015. (New §1014(f) and the information reporting requirements do not apply to returns filed merely to elect portability if a return was not otherwise required.)

Until regulations or other guidance is received from the IRS, many questions remain regarding the details of applying these rules, but they apply immediately.

For more detailed information about the new legislation, please click here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.