A fiduciary can elect whether or not to recognize a gain for tax purposes on the distribution of appreciated property made in fulfillment of a pecuniary bequest to a beneficiary.

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A fiduciary does not have the option to elect whether or not to recognize a gain for tax purposes on the distribution of appreciated property made in fulfillment of a pecuniary bequest. The distribution of appreciated property to satisfy a pecuniary bequest generally results in the recognition of gain as if the property were sold for its fair market value on the date of distribution.

A Fiduciary Can Elect Whether or Not to Recognize a Gain