Same as for any stock. Market value on death & that becomes the heir's tax basis which will then be reduced just like the deceased's was.
So THEORETICALLY if each generation retained their inheritance there would never be a tax due on either the cap gain or the distributions. This is how it works presently. When the nitwits in Congress realize this they WILL most assurredly screw it up.
Yeah ignoRANT, err, I mean dougbradley. I suppose dar has to return the NRF/NSAM dividends he's received this year because NRF/NSAM has declined in value? Green is NOT a good color for you, it points up your s(h)allow complexion.