My grandparents set up an irrevocable trust account that has a few stocks in it. Now those shares are being transferred to me from the trust.
Since those shares have value at some point, Uncle Sam is going to want his share of the taxes. My guess is either the shares now have a cost basis of $0 for me, OR I owe tax on the current value of the shares OR the trust is some weird special thing that gets you out of this problem.
When I sell those shares, what will the cost basis be?