Q: Do coins get a step-up in cost basis if sold by the executor before estate distribution?

A: Generally, anything that passes upon the death gets an adjusted basis. So, as the executor, your legal requirement is to distribute the decedent's property pursuant to his/her will. For anything substantial, I would recommend that you provide a detailed inventory with as much detail as possible, stating that the following items were distributed to John Doe pursuant to the Will of Jane Doe probated on April 2, 2025.

I just say this since many of the items you mention are not registered or titled. Providing a detailed inventory would help specifically identify items that could easily be handed over to people without a formal transfer.

To answer your question yes the basis would be adjusted to the value as of the date of death.

A: You're asking a really good question, and it’s smart to think about tax implications ahead of time. When someone passes away, their assets—including coins and collectibles—generally receive a **step-up in cost basis** to their fair market value as of the date of death. This applies whether the coins are later sold by the beneficiaries or by the executor as part of managing the estate.

So yes, even if you, as the executor, sell the coins before distributing them to the heirs, the step-up in basis still applies. The estate would report any gain or loss based on the difference between the sale price and the **fair market value at the time of death**, not the original purchase price. You’ll just want to make sure you have a reliable appraisal or valuation from around the date of death to support that basis.

Keep in mind, if the coins are particularly valuable or considered collectibles under IRS rules, they might be subject to a higher capital gains tax rate. But you’re handling things properly by asking now and planning ahead. The estate’s beneficiaries will also appreciate knowing that you’re being careful and fair about managing the assets.