When Is the Alternate Valuation Date?
The Executor Will Have the Option of Valuing the Estate on the Date of Death, or Alternately, on the Six-Month Anniversary of Death – the Latter Is, Fittingly...
The executor will have the option of valuing the estate on the date of death, or alternately, on the six-month anniversary of death – the latter is, fittingly, referred to as the “Alternate Valuation Date.”
What is an alternate valuation date?
Instead of using the value of assets on the date of death for estate tax purposes, the executor may elect an “alternate valuation” date of six months after the date of death. This election could effectively lower an estate's federal estate tax bill.
How does the alternate valuation date work?
Date of Alternate Valuation
If the alternate date is elected, all estate assets are valued six months after the date of death. The exception to this is if an asset is sold, exchanged, distributed to a beneficiary, or otherwise disposed of within six months of death.
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