The so-called “step-up in basis” rule is a crucial aspect of U.S. tax law that can significantly affect the taxation of inherited assets. This provision, which is codified within the Internal Revenue ...

A step-up in basis occurs when an appreciated asset is inherited from someone who has died, and the asset's cost basis is adjusted to fair market value as of the date of death. The cost basis of an ...

Dear Liz: You recently responded to a reader’s question about protecting an intended bequest. In the answer you wrote, “Assets in the trust get a step-up in tax basis when the first spouse dies, but ...