The Listen to Lawrence Letter: Stock Portfolio in a Medicaid Trust

February 23, 2024
February 20, 2024 • Volume 5 Issue 218
A practical question about a stock portfolio in a MEDICAID TRUST.


I opened a trust with you approximately 7 years ago. Very Happy.

Question 1.) Will my stock portfolio receive a step up in tax basis upon my demise?

Question 2.) Upon my demise, can the trustees still make withdrawals, or does my Will supersede those instructions?


This is an easy one. Yes, all the assets in the trust will get a step up in tax basis, wiping out all the capital gain. Upon your death, the trustees will follow the instructions in the trust, not the Will.

I hope this helps! Please forward this information to your friends and relatives to share these informative answers to some very commonly asked questions.


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