dsoltis said:
i reside in NJ, my father died in OK, he left me and my siblings 1250 shares of pfizer stock (pfe).i need to know how the value is determined, at time of death or present market value. a company called equiserve is in charge and i feel as though we are being ripped off.
My response:
There are two dates of evaluation for purpose of "value" - -
1. For probate tax purposes, the tax rate is based on their value on the date of death; e.g., if on the date of death each share was worth $100.00, then it is that amount, times the total number of shares, upon each heir that will be taxed.
2. For purposes of sale, the value is determined by that sale days' market value; e.g., if you wanted to sell them yesterday, and you had a contract to sell them on yesterday's date, you probably would have lost your shirt on each share. The New York Stock Exchange had its worst day in history yesterday, September 17, 2001, having lost 680 points in that one day !
Then, all of you have to worry about capital gains tax if you should sell them at a profit. Before you sell, it would be a wise move for each of you to consult a tax professional so that each of your tax situations can be evaluated.
IAAL
