Core concepts
Hold until death
Step-up basis eliminates deferred gain and recapture for heirs.
Refinance not sell
Cash needs met through refis preserves stepped-up basis benefit.
Trust structures
Revocable and irrevocable trusts coordinate transfer and tax.
Examples
- $5M portfolio with $2M basis steps to $5M at death — zero capital gain tax.
Practical applications
- Family wealth builders.
- Estate planning integration.
Common mistakes
- Gifting appreciated property instead of waiting for step-up.
- Inadequate trust documentation.
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