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. Managing Wealth

    How To Choose The Right Executor For Your Estate

    Making a careful choice now can save your heirs from a lot of problems later.
  4. 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.
  5. Financial Advisor

    When Do Alternatives Add Value to a Portfolio?

    Alternative investments continue to grow in popularity. But when do they really add value to a client's portfolio?
  6. 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.
  7. Investing

    Understanding Alternative Investments

    An alternative investment is one that’s not among the three traditional asset types – stocks, bonds or cash.
Frequently Asked Questions
  1. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money?

    Can pension money be used to fund other retirement accounts?
  2. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ...
  3. How does a company move from an OTC market to a major exchange?

    The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ...
  4. Can I roll a traditional IRA into a 529 college account for my grandchild?

    The short answer: Not without paying taxes. But as with much of the tax code, there are various nuisances and exemptions ...
Trading Center