Alternative Valuation Date

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Typically, a deceased person's estate is valued at the time of death; however, a provision in the tax code allows the executor of the estate to determine the value of the estate six months after the date of death. This is known as the alternative valuation date. It means that if the value of the estate diminishes, estate taxes will be based on the lower valuation rather than the higher value that applied at the time of death. Once a valuation date is selected, then all property typically must be valued at the same date.