Alternate Valuation Date
It is the responsibility of the executor of an estate to take care of the financial matters of the deceased including the filing of the final income tax return and the estate tax return. For valuing the assets that make up the decedent's estate, the executor has the option of using the date of death value or the "alternate valuation date," which is six months after the date of death.


Requirements to utilize the "Alternate Valuation date:"
  1. It must apply to all estate property.
  2. It must reduce the value of the gross estate.
  3. It decreases the amount of estate tax liability.

Look Out!
All assets that are disposed of between the alternate valuation date and the date of death are valued on the date of disposition if the alternate valuation date is selected.
Even if the alternate valuation date is used, diminishing value property (annuitized annuities, installment sales, patents, leases, etc.) is valued as of the date of death because the simple passing of time is not valid grounds to revalue the asset.



Qualified Disclaimer

Related Articles
  1. Financial Advisor

    How Life Insurance Can Help Reduce Estate Taxes

    Inheritance is a double-edged sword, as leaving money can create estate tax burdens. Opting for a life insurance plan can help mitigate those burdens.
  2. Retirement

    Before You Agree to Be an Executor: Know This

    How to avoid 5 surprising hazards of being the executor of an estate.
  3. Investing

    How to Value a Real Estate Investment Property

    Make sure you know what your real estate investment is worth before you sign the ownership papers.
  4. Retirement

    What Happens When You're Executor of Your Parents' Estate

    Being named the executor of an estate can be an honor, but it takes diligence and time.
  5. Investing

    What's a Maturity Date?

    Maturity date is the final date when any remaining principal and any unpaid interest are due on a debt.
  6. Investing

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  7. Financial Advisor

    How Estate Taxes Work, A Real Life Example

    The estate tax is frequently misunderstood. Learn more details about exactly how estate, or inheritance, taxes work in the United States.
  8. Investing

    Target Date Funds: More Popular, Cheaper Than Ever

    How target date funds can help investors weather volatility when it comes to saving for retirement.
  9. Managing Wealth

    Your Estate: The Best Assets to Leave to Family

    When it comes to estate planning, there are three main factors that come into play for distributing assets: liquidity, sentiment and tax planning.
Frequently Asked Questions
  1. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ...
  2. Which socially responsible retailers appeal most to ethical investors?

    Learn why ethical investors have many options in the retail sector, and discover which retail companies are most popular ...
  3. What are Some Examples of Free Market Economies?

    Learn which of the world's economies best resemble free market economies, marked by free trade, low government involvement, ...
  4. Who Decides When to Print money in India?

    Find out the role of the Reserve Bank of India, or RBI, and the amount of authority given to the government. Learn who is ...
Trading Center