$2.8 Million Tax-Free Gain: How Death Resets Capital Gains

The step-up in basis rule could save heirs hundreds of thousands in taxes on inherited assets

The Details

Gifting appreciated assets during life transfers your low basis to recipients, potentially costing them hundreds of thousands in unnecessary taxes. The same assets inherited at death arrive tax-free with reset basis.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.