Inherited Property

Understanding the “step-up in basis” when inheriting assets

Assets, Estate Planning, Inheriting Money, Taxes and Tips / Douglas Freeman

If you inherit assets after a loved one passes away, they often arrive with a valuable — but frequently misunderstood — tax benefit called the step-up in basis. Below is an overview of how the rule works and what planning might need to be done. What “basis” means First, let’s look at a couple definitions. Basis is […]

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Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis”

Assets, Estate Planning, Estate Tax, Federal Estate Tax, Stocks, Tax Planning / Douglas Freeman

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. How do the rules work? Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death

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