What is Alternate valuation date?
In short
An executor can elect to value a decedent's gross estate as of 6 months after the date of death instead of the date of death, but only if the election reduces both the gross estate and the estate tax.
Key takeaways
- Property sold or distributed within the 6 months is valued at the date of sale or distribution.
- Heirs take the alternate value as their basis.
- Changes in value due only to the passage of time, such as interest, are ignored.
Where it's tested
REG: Trusts, Estates & Gift Tax Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An executor may elect the alternate valuation date for estate tax purposes only if the election: