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Morton S. Winer, CPA
9933 North Lawler Avenue, Suite 410
Skokie, IL 60077
Phone: 847-676-8900
Website: www.msw-cpa.com
July 2026
Step Up in Basis
A new fair market value is established for assets received after a donor's death—a step-up in basis—but there is no step-up in basis for gifts received during a donor's life. The step-up in basis sets a new starting value for inherited assets, which can make a big difference if those assets have appreciated significantly.
USE CAUTION
Transferring assets to an irrevocable trust, a formerly popular strategy for transferring a family home, can take the trust assets out of the grantor's estate for all purposes. If the asset is no longer part of the grantor's taxable estate, it won't qualify for a step-up in basis. The assets in your irrevocable trust keep the same basis as when they are transferred to the next generation—or maybe to multiple generations.Be sure to review your trust arrangement with your estate professional.
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