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:"
- It must apply to all estate property.
- It must reduce the value of the gross estate.
- It decreases the amount of estate tax liability.
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.
Financial AdvisorInheritance is a double-edged sword, as leaving money can create estate tax burdens. Opting for a life insurance plan can help mitigate those burdens.
RetirementHow to avoid 5 surprising hazards of being the executor of an estate.
Managing WealthMaking a careful choice now can save your heirs from a lot of problems later.
Managing WealthWhen it comes to estate planning, there are three main factors that come into play for distributing assets: liquidity, sentiment and tax planning.
Managing WealthAsset managers must accurately represent all of a clients assets in the client portfolio. This can be tricky for unique and hard-to-value assets.
Financial AdvisorTarget date funds will likely become a permanent fixture in the marketplace for the retirement plan sector. Here's how they have recently improved.
InvestingThe date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
RetirementTarget date mutual funds can be an alternative to bonds and CDs for investors who do not wish to actively manage their savings. The reason: These financial products periodically reallocate fund ...