Locator: 48625TEXAS.
Locator: 48624TAXES.
Just one more reason to retire in Texas. Just saying.
For the archives.
Disclaimer: this is not an investment site.
Step-Up: Investopedia. Link here.
Step-Up in Basis in Community Property States.
Residents of nine community property states, including California, can use the double step-up in basis rule.
This allows a step-up in basis for community property—assets accumulated during marriage, excluding inheritances and gifts—for the surviving spouse. In other states, assets owned solely by the surviving spouse do not receive the step-up in basis, while jointly owned assets receive only half the step-up in basis they would receive in a community property state.
Alaska, Kentucky, South Dakota, and Tennessee allow residents and non-residents to create community property trusts that qualify held assets for community property tax treatment, including the double step-up in basis rule, under the federal tax code.
Texas is a community property state. This means that assets and debts acquired during a marriage are generally considered to be jointly owned by both spouses and are divided fairly in the event of divorce, according to the Texas State Law Library.
Step-Up:
Bank accounts upon death: link here.
