@DianeW777 wrote:
No. The wife would have a stepped up basis for half of the home when her husband died (on his date of death).....
@DianeW777
There would be no stepped up basis for the wife because the wife and her spouse only had life estates; they did not own the property in fee simple absolute.
With a life estate, the interest is entirely extinguished upon the death of the life tenant and it passes either to another life tenant or to the remaindermen. In instances where there are two life tenants, a surviving life tenant does not receive a stepped up basis since that survivor only has a life estate and not a remainder.
