Below is a clip from an article, "Four Ways to Beat State Death Taxes" in the Jan 28, 2013 Forbes Magazine, written by Ashlea Ebeling:A few caveats about “gifting.” If you want to make sure the money is going to be used the way you want, use a trust instead of an outright gift. Don’t gift low-basis assets: if you paid $10,000 for stock and it’s worth $100,000 when you give it away, the recipient keeps your old $10,000 basis and would owe capital gains tax eventually when the stock is sold. By contrast, if you leave the same stock to the same person in your will, the recipient gets a stepped-up basis to the value as of your date of death, saving capital gains tax.I have the impression that the "stepped-up basis" she cites above expired in 2012. Comments addressing this posting are appreciated. Thanks.
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