The Wall St. Journal has a timely article on the consequences arising from the death of people during 2010 when the stepped up basis rules applicable to inherited property is replaced by a carry over basis rule.  The article states,

Under current law, heirs of 2010 estates who sell assets at any point in the future could owe capital-gains taxes measured from the original owner's purchase price. . . . If you plan on leaving your heirs valuables, be warned: The tax code requires that objects worth more than $3,000 must have their value confirmed by an appraiser.”