It was only recently that I started thinking about inheritance and the step up in basis and realized I had a big problem for my heir(s). I had one stock position that was so unbelievably underwater. Of course in this case the stepping up in basis for that position would be bad for the beneficiary as they would lose the capital loss benefit of the very high cost basis since it would be reset to the current value. I have managed to mostly sell those high cost basis shares (offsetting gains elsewhere that I actualized) and feel much better about the situation. Of course what you describe benefits 95%+ of the beneficiaries but wanted to throw out an example of mine.

It was only recently that I started thinking about inheritance and the step up in basis and realized I had a big problem for my heir(s). I had one stock position that was so unbelievably underwater. Of course in this case the stepping up in basis for that position would be bad for the beneficiary as they would lose the capital loss benefit of the very high cost basis since it would be reset to the current value. I have managed to mostly sell those high cost basis shares (offsetting gains elsewhere that I actualized) and feel much better about the situation. Of course what you describe benefits 95%+ of the beneficiaries but wanted to throw out an example of mine.