Valuation Techniques and the Federal Gross Estate
Generally, federal estate taxes are based either on the FMV of the transferred property as of the date the decedent died or the alternate valuation date which is six months following the date of death.  


Fair Market Value (FMV):
The price at which property would change hands between a willing seller and buyer of which neither is under any urgency to buy or sell, and both parties have reasonable knowledge of relevant facts pertaining to the property.

Step-up In Basis:
Marketable securities such as publically traded stock, mutual funds, bonds, etc. receive a step-up in basis to FMV at the date of death as well.

Sample Questions 1 - 4

Related Articles
  1. Taxes

    How a Step-up in Basis Reduces Capital Gains Tax

    How to use a step-up in basis to reduce the capital gains tax on inherited appreciated assets.
  2. Taxes

    Get Ready For The Estate Tax Phase-Out

    Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.
  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. 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.
  5. Taxes

    Trade Properties To Keep The Taxman At Bay

    Like-kind exchanges can mean a much lower tax bill on real estate for savvy investors.
  6. Investing

    A Guide to Real Estate Investing

    Investing in real estate is a popular choice for good reasons, but it's more complicated than owning your typical stocks and bonds.
  7. Investing

    Relative Valuation: Using Stocks To Value Other Stocks

    This effective approach will help you understand which stocks you should be investing in.
  8. Managing Wealth

    Real Estate Valuation: What You Should Know

    Anyone from mortgage lenders to property buyers and sellers can benefit from a basic understanding of real estate valuation.
Frequently Asked Questions
  1. What's considered to be a good debt-to-income (DTI) ratio?

    Your debt-to-income ratio helps lenders determine your credit worthiness. Find out how to calculate your score and how to ...
  2. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ...
  3. What does a Chief Financial Officer (CFO) do?

    A CFO is responsible for accurate reporting of a company's financial information, investing the company's money and identifying ...
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ...
Trading Center