Premium Only Content

Trust & Estate Quick Tip #9: Does beneficiaries have to pay taxes on their inheritance?
www.estateandprobatelawyer.com / 954-580-3690
When an individual passes away, the transfer of their assets to beneficiaries named in a will or to their heirs in the absence of any documented instructions results in a new cost basis for those assets. This means that the value of the assets is adjusted to what is known as a "step-up" in basis.
To illustrate this concept, let's consider the scenario where you purchased Apple stocks for $10, and over the course of 30 years, their value increased to $100. If you were to sell the stocks before your death, you would be subject to capital gain taxes on the $90 of appreciation.
However, if you were to pass away while still holding the stocks and they are subsequently inherited by your beneficiaries, the stocks would receive a new cost basis equal to their fair market value at the date of your death, which in this case is $100. This means that the built-in appreciation, which would have otherwise been subject to capital gain taxes, is completely eliminated. Therefore, it can be advantageous to transfer assets to beneficiaries upon death rather than gifting them during your lifetime.
It is important to note that the step-up in basis applies to various types of assets, but cash and retirement accounts are excluded from this provision. The step-up in basis refers to adjusting the cost basis of an inherited asset to its fair market value at the time of the original owner's death.
If you have any further inquiries or require clarification, please do not hesitate to reach out to us at info@estateandprobatelawyer.com!
PHONE: 954-580-3690
WEB: www.estateandprobatelawyer.com
FACEBOOK: https://www.facebook.com/estateandprobatelawyer
YOUTUBE: https://youtu.be/kneSu_FiZ7U
INSTAGRAM: https://www.instagram.com/sjflawgroup/
LINKEDIN: https://www.linkedin.com/company/sjflawgroup/
TIKTOK: https://www.tiktok.com/@sjflawgroup
-
LIVE
SpartakusLIVE
6 hours agoGames w/ @sophiesnazz || #1 SMOOTH Operator see SURGE in viewership after AESTHETIC reveal
6,593 watching -
2:38:54
TheSaltyCracker
4 hours agoLefties Cheer Flood Deaths ReeEEeeStream 07-06-25
63.8K173 -
6:50
Russell Brand
9 hours agoRFK Just EXPOSED It All
52.9K127 -
LIVE
PandaSub2000
6 days agoLIVE 10:30pm ET | ARCADE NIGHT!
547 watching -
9:26:00
GritsGG
9 hours agoWe Are Winning Every Game! Win Streaking! 👑 2998+ Ws
11K -
3:49:38
EricJohnPizzaArtist
6 days agoAwesome Sauce PIZZA ART LIVE Ep. #53: Celebrating Rumble Gaming, Freedom, and 10 Years of Pizza Art!
28.9K5 -
DVR
IsaiahLCarter
1 day ago $0.73 earnedChristopher Hitchens Knew. || APOSTATE RADIO 022 (feat. Dan Burmawi)
13.2K1 -
2:35:29
vivafrei
13 hours agoEp. 271: Elon Musk Creates New Party? Big Beautiful Bill PASSES! Diddy Cover-Up? AND MORE!
139K111 -
LIVE
Spartan
7 hours agoPro Halo Player | Ranked, SWTOR later (maybe)
29 watching -
LIVE
xXFadedAngelXx
1 hour agoSPLITGATE RANKED IS HERE (Splitgate 2)
165 watching