ColoradoDisneyFreaks
DIS Veteran
- Joined
- Feb 13, 2010
The estate would pay taxes on the stock and his heirs will receive it at the value at the time of his death.
If the stock increases in value after inheritance, the heirs would owe taxes on the capital gains when they sell the shares.
Also because up until that stock is sold, it's just a paper asset, Capital Gains is realized gains, meaning that something was sold for a profit and the gains are that profit. They don't tax you on unrealized Capital Gains.