LogFAQs > #959447444

red sox 777 posted...

Doesn't estate tax take care of that? Death is already a realization event. Like, your heirs are already paying 40% tax on the value inherited above the exclusion amount, so when they get it at $100 they have to pay $40 in estate tax.

Well, in the sense that theyll have to pay something on it. But the estate tax is already normally a double tax; for the stock it would change it from being untaxed to singly taxed whereas normal income/realized gains would have been doubly taxed (income or capital gains tax + estate tax vs just estate tax).

Under the current system theres a substantial benefit to your heirs not to sell your stock before you die unless you need to (unless there are unrealized losses, in which case you would want to sell before dying)

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Congrats to azuarc, GotD2 Guru champ!