Client Background
A client, the only child of a parent, held a significant stock position with substantial capital gains, accumulated over many years.
Challenge
Selling the stock would trigger significant capital gains taxes, reducing the client’s net proceeds. They needed a tax-efficient way to realize the stock’s value while preserving wealth.
Solution
Working with their CPA and estate planning attorney, we facilitated a strategic gifting plan. The client gifted the appreciated stock to their elder parent, whose estate was below the 2025 estate tax exemption of $13.61 million. Upon the parent’s passing, the client inherited the stock with a stepped-up basis equal to its fair market value, eliminating capital gains.
Results
The client sold the inherited stock at the higher cost basis, avoiding capital gains taxes and maximizing their proceeds. This tax-efficient strategy preserved their wealth, aligning with their financial goals and demonstrating the power of coordinated estate planning.
Are capital gains reducing your wealth? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.