News report 📈 Stocks 🌍 United States

Bequeathing Apple and Microsoft Shares Saves Heirs $120,000 in Capital Gains

Strategic estate planning involving the step-up in basis rule allows heirs to inherit appreciated assets like AAPL and MSFT without the burden of the original owner's capital gains tax liability.

📅 September 13, 2026 🕐 1 min read

2 assets impacted (Stocks). Net bias: 0 Bullish, 0 Bearish, 2 Neutral. Strongest signal: AAPL → 2/10 (72% confidence).

📊 Affected Assets (2)

AAPL

Neutral 🤖 72%

🗓️ Long-term 🌍 US · Explicit

Mentioned as an example of highly appreciated stock where bequeathing provides a step-up in basis, avoiding capital gains taxes for heirs.

MSFT

Neutral 🤖 72%

🗓️ Long-term 🌍 US · Explicit

Mentioned alongside Apple as a deeply appreciated blue-chip stock illustrating the tax benefits of bequeathing over gifting.

🧭 Full analysis of these assets

🎯 Key Takeaways

Inherited shares receive a step-up in basis to the date-of-death value, eliminating capital gains tax on lifetime appreciation.
Lifetime gifts carry over the original cost basis, forcing heirs to pay capital gains tax upon the eventual sale of the assets.
Retirement accounts like IRAs and 401(k)s do not qualify for the step-up in basis and remain subject to ordinary income tax.

📝 Executive Summary

Investors holding deeply appreciated blue-chip stocks like Apple and Microsoft can save heirs over $120,000 in capital gains taxes by utilizing the step-up in basis rule. By bequeathing shares at death rather than gifting them during one's lifetime, the cost basis resets to the fair market value, effectively erasing decades of embedded tax liability.

❓ FAQ

What is the step-up in basis rule?

Under IRC §1014, when an individual dies owning appreciated assets, the cost basis for the heirs resets to the fair market value on the date of death, which eliminates the capital gains tax on the appreciation accumulated during the owner's lifetime.

Do retirement accounts qualify for a step-up in basis?

No, retirement accounts such as Traditional IRAs, 401(k)s, and 403(b)s do not receive a step-up in basis and pass to heirs with their original tax character intact.

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