[lookout123]

I deal with estates and planning all the time. Please consider very carefully what I say next. Spend the few bucks to have a qualified tax or estate professional walk you through it, the money you will spend with be worth the piece of mind in knowing it was done right.

That being said, stocks, bonds, and mutual funds have a step up on the date of death meaning that the value of the security on DoD is beneficiary's cost basis.

MiL paid $5 for XYZ, value on DoD was $20. If the beneficiary takes XYZ stock then chooses to sell and the price is $22 - the beneficiary is only responsible for capital gains on $2.

But if XYZ was sold for the same price inside the estate before disbursement the estate would be responsible for capital gains tax on $17.

If MiL's total net worth is under the death tax floor then there is not estate tax to consider.

Depending on how the trust is structured and who the successor trustee is will determine whether or not items can be sold inside the estate or if they must be distributed first. State laws are different on that issue as well. Check with a tax pro before you proceed, especially in regards to the house.

As always, I don't know you, your financial standing, the structure of the trust, or your applicable state laws so do not rely on my words in choosing a course of action. Always consult a professional before taking actions with financial ramifications.

Also before just adding those securities to your portfolio make sure they align with your predetermined retirement goals and risk tolerance.