As a general tax planning rule, individuals should sell assets that have declined in value prior to death and keep appreciated property to transfer to their heirs at death.

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Selling assets that have declined in value prior to death allows the individual to offset capital gains with capital losses, reducing their tax liability. Keeping appreciated property to transfer to heirs at death allows for a step-up in basis, potentially reducing the capital gains taxes owed by the heirs upon sale of the property.

As a General Tax Planning Rule, Individuals Should Sell Assets