Life Estate Basis

[Davelias]

My client inherited a property from the life estate of his older brother. The older brother had received the life estate from his mother who had purchased the property 2 years prior. The mother passed away in 2006 and the brother passed away in 2020.  Which date of death do I use for the stepped up basis date?

[BobKamman]

Doesn't look like he inherited anything from his brother. A life estate evaporates when the holder dies.  But what actually happened?  Did Mother give a life estate to First Son, then the remainder to Second Son?  Then you would go back to 2006 FMV at Mother's date of death.  Part of the value goes to the life estate, based on age of First Son, and the rest goes to the remainder of Second Son.  The tables changed in 2009, so make sure you use those from 2006, if it really matters.  

[Terry53029]

If it is a life estate it ends when the person holding it passes away. It is then passed to whoever original owner willed it to, and basis would be stepped up at the mothers date of death. You should see if there was a will, and check deed to see who is on it.