Inheritance of a 1031 replacement property that is in joint title

[Buddy Holmes]

My wife and I have completed a 1031 exchange of a property we owned in joint title.  The replacement properties are also held in joint title as required.  In our estate planning the question is upon the death of one of us, the other becomes sole owner but what happens to the property basis?

Cheers,

Buddy

[Thomas Castelli]

It sounds like you have Joint Tenancy, which means that the surviving spouse will receive a stepped up basis on 1/2 of the property (the part inherited from the deceased spouse).