Snapshots of Optimizing Asset Disposition for Inheritance: A Quantitative Analysis of the Critical Loss Rate and Stepped-Up Basis

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that resetting an inherited asset’s basis to market value at death can offset limited underperformance by the retained asset versus immediate sale and reinvestment, but this advantage shrinks over longer inheritance horizons.