Estate Planning Question?

You don't want Yahoo advice on something this complex. Consult an eldercare attorney or tax CPA.

Basis would be her basis, so yes, there will be tax consequences.

Talk to the people at the retirement home... what about if she gifts a portion to them? If it's a non-profit or one run by a foundation or church group or some such, they might take the donation (it would be at current value, not on her basis) and reduce her fees or cancel them.

Alternatively, how about mom just gifts to the grandkids their $13K each (who in turn sell and don't take much of a tax hit) and then sells the rest (with her tax hit being at less of a consequence than income producing children) and re-investing into TF Munis. The grandkids would of course 'gift back' to Gramma their profits ... talk to a CPA about it, but be sure to find one that doesn't "love the Gov". I got a good one, but don't think I can say his name on here.

Good luck.. think outside the box

GC

If mom gifts the portfolio to you, she gifts the tax consequences as well. Your basis would be her basis if you have gain. (If the stock went down in value, you can't take her loss.)

Regarding mutual funds, often you can just roll them over into a different kind f account. without selling them, thus avoiding the tax consequences of a sale.

Discuss this with your fund representative.

Don;t go by "Yahoo"posters. They mean well,but seldom have the expertise.to be of real help.

you would probably do well to contact a financial planner who can get you into products that produce better and also advice you what kind,

I transferred some using the 1035 exchange, but not all are eligible for this transfer