Income Tax Basis for a Remainder Interest

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2010-02-19
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Harl, Neil
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Although less common than a half century ago,1 it is not at all unusual to see use made of legal life estates and remainders, not to mention life estates and remainders in trust. A major concern is what is the income tax basis for a remainder and what happens if the holder of the life estate predeceases the remainder interest holder? Is the holder of the remainder interest entitled to receive a new income tax basis at death?

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