My understanding is.
The way it is now if I die my kids inherit my place at present value. New plan if I bought it 30 years ago at 10,000 and its worth 500,000 they pay tax on 490,000.
Right now, if you inherit property under the Federal inheritance Tax limit (which was just raised, and is way higher than I need to worry about), the kids receive the property free and clear AND they receive a "stepped up basis", meaning THEIR basis for future capital gains taxes is reset to the value of the property at the time of inheritance.
It's a very favorable tax treatment for inheritances, and many people fugg it up by deeding property to their children before they die, in effect screwing their kids and setting them up to have to pay tens of thousands in capital gains taxes to avoid a few thousand in state probate taxes.
