Series 6 - Investment Company And Variable Contracts Products Representative Exam

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When a person dies and leaves securities to heirs, the cost basis to the recipient is:

The fair market value on the date the recipient withdraws the assets
A
The fair market value on the date of the account owner's death.
B
The net asset value on the date the recipient withdraws the assets.
C
The fair market value on the last day of the calendar year in which the account owner died.
D

Explanations

The cost basis of securities to the recipient is the securities' fair market value on the date of the account owner's death.

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