Many families spend years creating wills, trusts, and beneficiary designations, believing their estate plans are complete. Yet when heirs eventually inherit property, investment accounts, or other valuable assets, a surprisingly common problem emerges: no one can clearly document the asset’s date-of-death value. That missing information can create confusion, delays, and potentially higher capital gains taxes when inherited assets are sold.
Unfortunately, many families overlook a critical document that helps establish a proper step-up in basis, one of the most valuable tax benefits available to heirs. As estate settlements continue to grow more complex, this oversight can be costly if it is not addressed before it becomes a problem. Here’s what you need to know about step-up in basis and how it could impact your estate planning.
