We talk a lot about building wealth.
We don’t talk nearly enough about how to keep it as it moves from one generation to the next.
If you’ve spent the last twenty or thirty years building a real estate portfolio or holding onto a concentrated stock position, you are likely sitting on a massive “paper gain.”
Here’s the good news most people don’t realize:
When you pass away, your heirs receive a step-up in basis.
That means the cost basis of your assets is reset to the fair market value on the date of your death.
Real example from our portfolio:
– Property purchased for $800k is now worth $3.2M.
– If I sold it today, I’d owe capital gains tax on roughly $2.4M.
– If my children inherit it, their new cost basis becomes $3.2M. They could sell it shortly after with little to no capital gains tax.
This is one of the most powerful — and underappreciated — tax benefits in the entire code.
Combined with the new permanent $15 million estate tax exemption (effective 2026), we are living in one of the most favorable windows in history for transferring wealth to the next generation.
What I’m doing now:
– Reviewing every major asset with our estate attorney
– Making sure real estate and investments are properly titled (trusts vs individual names matter)
– Updating beneficiary designations
– Stress-testing our plan against both my husband’s and my potential early death
This is not about being morbid.
It’s about being a responsible matriarch.
If you have significant unrealized gains in real estate or investments, the step-up in basis combined with proper estate planning may be the single highest-leverage financial move you can make for your children.
Recommended Resource:
→ My Estate Planning Starter Bundle includes the exact checklist I’m using to review our own holdings.
Related Posts:
– The Matriarch’s Legal Checklist: 5 Documents Every Aging Parent Needs Now
– The Conversation No One Wants to Have: Navigating Your Parents’ Finances with Grace
– The Sandwich Generation Survival Guide: Managing the Mental Load Without Losing Yourself