Nine U.S. states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) plus opt-in regimes in AK and TN. In community-property states, the surviving spouse often gets a 'double step-up' — both halves of the property step up at the first spouse's death.
Related terms
Step-Up in Basis
A federal tax rule (IRC §1014) that resets an inherited asset's cost basis to its fair market value on the date of the original owner's death.
Probate
The court-supervised process of validating a will, paying the deceased's debts, and transferring remaining assets to heirs.
Inheritance Tax
A state-level tax paid by the heir on the value of property received from a deceased person.