The recipients of an inter vivos gift (a gift made by a living donor) retains the donor's basis in
the property, for calculating capital gain.

The recipients of a decedent's estate receive a step up in the basis in the property, for
calculating capital gain, to fair market value as of the date of death of the donor.
Philip McCarthy
Attorney at Law
The recipients of an inter vivos gift
receive the donors basis in the property.  
The recipients of a devise receive a
stepped up basis in the property.
THE CAPITAL GAINS TAX DISADVANTAGES OF PLACING
CHILDREN ON TITLE IN ORDER TO AVOID PROBATE
For a more detailed analysis of
the tax consequences of
Placing Children on Title in Order to Avoid Probate
contact me.