Cost Basis Step Up: The Secret Strategy Every Investor Wants to Know!

Tue, 05 May 2026 14:02:12 +0000

**Cost Basis Step Up: The Secret Strategy Every Investor Wants to Know!** Have you ever wondered why some investors see significant tax advantages in estate planning and asset transfers? The term *Cost Basis Step Up* is quietly reshaping how long-term wealth strategies are understood in the US—especially among sophisticated investors managing multi-generational assets. This subtle but powerful mechanism can dramatically lower future capital gains exposure, offering a compelling edge in tax-efficient estate planning. What is the Cost Basis Step Up? Simply put, it refers to the stepped-up fair market value of an asset at the time of ownership transfer to a successor—usually heirs or beneficiaries. This reset of the cost basis eliminates accumulated capital gains from prior years, meaning heirs pay no tax on appreciation during the original owner’s lifetime. The strategy gains critical relevance now as more investors seek to optimize portfolios amid evolving market and tax landscapes. ### Why Cost Basis Step Up Is Gaining Traction in the US