When you inherit real estate and then subsequently sell that real estate, you will likely benefit dramatically from the step-up in basis, aka the step-up in basis or the stepped up basis.
The step-up in basis, what does this mean?  If a child or grandchild later sells a gifted or inherited home, they may have to pay capital gains taxes depending on a variety of factors.  If a property is inherited, there is a “step-up” in basis of the value of the property (to the value at the time of death) for purposes of calculating capital gains when the property is later sold.  The “step-up” essentially provides a higher value of the property when calculating any “gains” as compared to the sales price.  The “step-up” can have enormous tax benefits for the heirs that will be lost by gifting property during lifetime.