Capital Gains
Learn how capital gains taxes affect estate planning decisions. Discover strategies families use to understand tax implications when transferring assets.
What happens to capital gains taxes when someone inherits property?
When someone inherits property, they typically receive a "stepped-up basis," meaning the property's tax basis resets to its fair market value at the time of inheritance. This can eliminate capital gains taxes on the appreciation that occurred during the original owner's lifetime, potentially saving heirs significant tax costs when they eventually sell the inherited property.
