Quote Quoting Mr. Knowitall
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If they give a future interest to their son by making him remainderman, reserving a life estate to themselves, their son should get a step up in basis at the time of their deaths just as he would with an inheritance. But yes, trusts are generally a better option for a number of reasons.
While I tend to agree with you that a life estate should give a stepped up basis, there has been significant disagreement on that issue...on THIS forum.

Therefore I do tend to suggest trusts over life estates, and as you stated they are generally a better option for other reasons as well.

A life estate is a good option for a situation that is a second marriage, and the homeowner wants his/her spouse (non-owner) to be able to reside in the home for their lifetime, but wants his/her children to inherit.

Otherwise, a trust is usually better