Legal Question in Real Estate Law in Arizona

Step-up valuation of Real Estate question

It is my understanding that in the case of a Living Trust there is a ''step up'' in the purchase valuation of the Grantor's home, for example, and that, upon his/her death, the beleficiary does not have to pay any capital gains on said property in the case of a sale of same. Is the same true in the case of a Will?


Asked on 12/16/06, 1:54 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Step-up valuation of Real Estate question

The proper designation is a stepped-up basis, not valuation, and it applies to an inheritance regardless of whether it comes by way of a will, trust, beneficiary deed, etc. Get a statement of date-of-death valuation, such as an appraisal if real estate or DOD statement if securities, so you can calculate your capital gain if you sell later.

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Answered on 12/18/06, 10:48 am


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