If you transfer property after the death of the decedent, you do not need to file Form 8971, but you must provide the heir(s) with information about the basis of the property.
You can provide this information by sending the heir(s) a statement that includes the following information:
The date of the decedent’s death.
The fair market value of the property on the date of the decedent’s death.
The basis of the property in the hands of the decedent on the date of the decedent’s death.
The adjusted basis of the property in the hands of the executor on the date of the decedent’s death.
The fair market value of the property on the date of the transfer.
The basis of the property in the hands of the heir(s) on the date of the transfer.
You must provide this statement to the heir(s) on or before the date that is 30 days after the date you transfer the property.
If you do not provide this statement to the heir(s), you may have to pay a penalty of $250 for each person to whom you fail to provide the statement.