If you’ve recently lost a loved one, are navigating probate, or are thinking ahead to how your assets will be handled in the future, there’s a conversation happening in Congress that could affect your family and it’s not getting much attention outside legal and financial circles. A major tax bill, unofficially dubbed the “One Big Beautiful Bill Act”, is moving forward in Washington. While it hasn’t been finalized yet, it proposes significant changes to how estate taxes, deductions, and valuations work. As someone who works closely with families, estate attorneys, and CPAs across Arizona, I want to help you understand how these proposed changes might impact real estate inheritance, especially if you’re counting on a smooth and fair financial outcome.

A Higher Estate Tax Exemption Means Fewer Families May Owe Taxes

Under current law, the federal estate tax exemption is scheduled to drop in 2026. But this bill would lock in a much higher exemption: $15 million for individuals and $30 million for married couples. That’s a generous number, and for many families, it means their estate likely wouldn’t be subject to federal estate taxes at all. But here’s where the confusion often sets in: even if no estate taxes are due, you still need to know the value of inherited property. Why?

The Step-Up in Basis Still Applies and It Can Save You Thousands

One of the most overlooked but powerful tools in estate planning is the step-up in basis. It means the value of inherited property is “reset” at the fair market value as of the date of death. This new bill doesn’t change that, which is good news. But here’s what most families miss: if the inherited home is sold later, capital gains taxes are based on that stepped-up value. And if that value isn’t documented correctly (or at all), it can lead to costly tax consequences. That’s where a date-of-death appraisal becomes so important. It doesn’t just help with IRS compliance, it gives you peace of mind. You know the value was accurate, professionally documented, and defensible if ever questioned.

These Shifts Reflect a Bigger Trend: Responsibility Is Falling on Families

Many of my clients come to me not because they’ve planned everything in advance, but because a situation has landed in their lap, often unexpectedly. A loved one passes. A property is inherited. And suddenly, they’re being asked for information they’ve never had to think about before. This new legislation reinforces something I’ve seen time and again: while the tax code might evolve, the responsibility to manage assets wisely still rests with families and their trusted advisors. Whether it’s making sense of tax deductions, understanding Opportunity Zone rules, or preparing for the eventual sale of inherited property — clarity matters. And credible, locally informed valuations play a bigger role than many realize.

Here’s How LaPlante Appraisals Can Help

I’ve lived and worked in the Phoenix area for decades. I know the neighborhoods, the quirks of our local market, and the emotional weight that often comes with real estate decisions tied to loss or legacy. If you’re unsure whether you need a date-of-death appraisal, or what a “step-up” means in your situation, I’d be glad to walk you through it. No pressure, no hard pitch. Just clear, thoughtful guidance. Because at the end of the day, this isn’t just about tax codes.

It’s about protecting what your loved ones worked hard for, and making sure their legacy is handled with care.