real estate in estate planning

What is the name of your state? New York

When someone dies and their assets are passed to the successors the stocks/mutual funds adjust their basis (acquisition price) to the day of the death. How is property such as a home and raw land treated? Does it readjust it's basis as well? And lastly, can property (in this case raw land which has had great appreciation) be transfered to a family member who is expected to die soon and have the basis of that property adjust to the value of the day of the death...and then through the will be passed back to the former owner?

Sorry, that last question sounds kind of scummy...but I'm curious.
Thanks!

Yes, land gets a new basis. Usually, the estate gets an appraisal & that's the new basis.

Yes, the property could be given to someone who's 'about to die' so that the basis is readjusted, but the IRS might argue that this transaction was a sham. The property has to be given free & clear, and the new owner has to be free to give the land to whomever s/he wishes. For clarity's sake, the new owner should execute a new will specifically addressing what happens to that land afte receiving it. You should definitely see a tax attorney for help structuring such an arrangement if you decide to pursue this. At the very least, you can sue the lawyer if the deal is challenged by the IRS.

Thanks abezon!
So a free and clear transaction should take place...did you mean as a gift when you mentioned "given"?...or could it be sold for $1 or something like that? The property is valued at ~$200k but my basis is about $50k...when I sell it or give it to the family member how do I handle my end taxwise? What's the $50k written-off against? I do have some other properties.
Thanks!