Don't know any details yet, not a plan we administer. But apparently a participant died, and the beneficiary of the plan is a trust. Don't know who the trust beneficiary(ies) is/are.

There was stock in the participant's account. Assume for the moment that it was NOT employer stock, and assume a non-spousal beneficiary.

The question was - if the stock is transferred directly to the trust, is there current taxation on the whole amount, the net unrealized appreciation, or nothing whatsoever until stock is sold?

I'd appreciate any thoughts on this. Thanks.

NUA is available only on employer stock paid to a beneficiary. Any other distribution of property is taxed as ordinary income unless 10 year averaging is available.

Thank you!