New Kid on the Blockchain: Using Blockchain Technology to Reform Step-Up Basis of Inherited Assets

20 Wake Forest J. Bus. & Intell. Prop. L. 229

Current tax law provides an outdated and inequitable preference to
heirs who inherit appreciated assets, as compared to individuals who
receive gifted assets during the donor’s lifetime. This tax preference,
known as “step-up” basis, is expected to cost the United States
government $105 billion in foregone tax revenue over the next ten
years, not including all lost revenue from prior years. Individuals who
receive gifted assets take the donor’s basis in the asset, also known as
“carryover” basis. Contrastingly, heirs receive a “step-up” in the basis
of an inherited asset to its fair market value, effectively exempting the
asset’s appreciation during the decedent’s lifetime from income tax.