Step up

If you are inheriting Stocks from a deceased relative or friend in the United States you have what is called Step up. What this means is you don't have to pay capital Gains tax on those stocks. Instead you can convert those stocks to cash or other stocks. What some people do is to convert a few stocks to many stocks. By Diversifying your stocks  to many blue chip dividend bearing stocks you lessen your risk as an investor. The dividends tend to make your risk less. But, this only works mostly if you are a long term investor. A long term investor never spends his or her principle but keeps it working for him or her throughout their lives and only spends or reinvests the interest (dividends). As some stocks in this portfolio aren't worth keeping you sell them and reinvest in  better performing stocks throughout your lives. Then you can leave the principle of all these stocks to one or more of your relatives or friends when you pass on.