Estate and Gift Taxes : Here's What You Need to Know - WSJ https://www.wsj.com/articles/estate-and-gift-taxes-2020-2021-heres-what-you-need-to-know-11617908256
"Under current [US] law, investment assets held at death aren't subject to capital-gains tax. This is known as the "step-up in basis." Some in Congress and the Biden administration want to limit this benefit.
"For example, say that Robert dies owning shares of stock worth $100 each that he bought for $5, and he held them in a taxable account rather than a tax-favored retirement plan such as an individual retirement account (IRA).
"Because of the step-up provision, Robert's estate won't owe capital-gains tax on the $95 of growth in each share of stock. Instead, the shares go into his estate at their full market value of $100 each. Heirs who receive the shares then have a cost of $100 each as a starting point for measuring taxable gain when they sell."
[This is how wealth stays in the hands of the very wealthy, like Bezos' and Gates' children.]
[Gifts, however, are different from inheritances:] "Annual gift-tax exclusion is $15,000 per donor, per recipient...If the gift isn't cash, the giver's "cost basis" carries over to the recipient. So if Aunt Ruth gives her godchild Betty 15 shares of long-held stock worth a total of $15,000 that she acquired for $200 each, then Betty's starting point for measuring taxable gain when she sells is $200 per share. If she sells a share for $1,200, then her taxable gain would be $1,000."
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