So she is holding the property so that her heirs will get a step up in cost basis on her death and owe no tax.

FORBES: Blame the Joint Committee on Taxation not the CBO

On the other hand, if that was a stock mutual fund, they may be eligible for a step up in cost basis, which could mean little or no taxable gain for your heirs.

FORBES: Are Variable Annuities a Good Deal or a Ripoff?

You may be elderly and your heirs will get a step-up in cost basis at your death.

FORBES: Capital Gains Tax is an Economic Monkey Wrench (2012)