How can you give more to your heirs with less? For the sake of simplicity, let's assume you have $300,000 in an IRA and appreciated stock worth $250,000. Assuming you are in the 45% estate tax bracket, you can see that your heirs actually benefit more from the lower valued gift of stock.

What if I'm not affected by the estate tax.

The income your heirs receive from your IRA is called “Income in Respect of Decedent“ (IRD). IRD is taxable upon transfer and at the donor's highest tax rate. However, the gift of stock is taxable when the heirs sell the shares; and then in only the gain that has occurred from the date of transfer is taxable — typically at the 15% tax rate.