Presumably you could “realize” gains upon transfers due to death, as you do with other transfers. Does it make estate handling a little more complex? Maybe a bi

Presumably you could “realize” gains upon transfers due to death, as you do with other transfers. Does it make estate handling a little more complex? Maybe a bit. But it mirrors other transfers, avoids punishing inherited earned income disproportionately, and avoids complex record-keeping requirements. (In general, brokers and similar institutions track basis, so I don’t think the death of the owner makes determining the basis especially difficult.)