A US tax strategy leverages the “stepped-up basis rule” to eliminate capital gains tax on highly appreciated assets. By gifting stock to an aging parent, and then inheriting it back through their estate after they hold it for more than one year (the article suggests 18 months to clear the window), the asset's cost basis is reset to its fair market value on the date of death. This effectively erases decades of embedded capital gains, avoiding significant tax bills upon sale. However, the strategy carries risks, including the basis reset being voided if the parent dies within one year and the property returns to the original donor, potential impact on Medicaid eligibility due to a five-year lookback period, and state-specific estate or inheritance taxes.