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Question

Should I gift appreciated assets if my heirs lose the step-up in basis?

Answer

It depends on the asset. For taxable estates, the estate tax saved on future growth often outweighs the capital gains tax heirs may owe. Cash, high-basis assets, and assets with strong growth potential tend to make the best gifts, while deeply appreciated assets may be better held for the step-up.

Related FAQs

Can I use my exemption and still keep access to the assets?

Why use my lifetime exemption now instead of at death?

What happens to my gifts if Congress lowers the exemption later?
Estate Planning Tax Planning Impact of New Laws OBBBA Generational Wealth Year-Round Tax Planning FAQs
Last Updated Oct. 14, 2026
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