The first months
Understand the stepped-up basis rule for inherited assets
Inherited assets are valued at their fair market value on the date of death, not what they originally paid. This can save enormous amounts on capital gains tax when the asset is later sold. Get a date-of-death appraisal for real estate, business interests, and significant investments so you have documentation.
What you'll need
- Date-of-death values for major assets
Good to know
This is a huge deal: A house bought decades ago for $80,000 that's now worth $700,000 gets its basis reset to $700,000 at death. If sold soon after, capital gains tax on the sale is minimal. Waiting years to sell can undo this benefit as the property appreciates further.
Need help with this step?
Someone on our team can talk through this step with you, answer questions, and help you figure out what applies.
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