Alternative Valuation Date

Alternative Valuation Date

Six months after the death of a person subject to the estate tax. If the executor of an estate believes that the value of an estate is declining or will decline, he/she may use the alternative valuation date for purposes of determining the value of the estate. This reduces the estate tax owed. Otherwise, the executor uses the date of the person's death.
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It is important to note that once the election is made to opt for the alternative valuation date, it is irrevocable and must apply to all the property in the Estate uniformly.
By the time these trusts are funded, several years could have passed since the first spouse's death, and the appraisals and values used at date-of-death, or the alternative valuation date, are no longer current.
Table 3: Comparison Option Values Using Alternative Valuation Dates and Methods
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