Estate Tax Question

[noname87]

What is the name of your state?NJ

I am the executor of a taxable estate. The estate had several treasury bills which matured 4 months after the date of death of my mother. I have elected to use the alternate evaluation date. What is the correct (for federal estate taxes - form 709) evaluation of these treasure bills? Is it a) the value at the date of death or b)the face value.

 

[anteater]

What is the name of your state?NJ

I am the executor of a taxable estate. The estate had several treasury bills which matured 4 months after the date of death of my mother. I have elected to use the alternate evaluation date. What is the correct (for federal estate taxes - form 709) evaluation of these treasure bills? Is it a) the value at the date of death or b)the face value.

I'm not an estate tax expert, so I might be corrected....

But, if you are using the alternative valuation date, then all assets must be valued using that date. And, if my memory is not fading too badly, if an asset was disposed of (or, in this case, came to maturity and was redeemed) between the date of death and the alternative valuation date, then the actual sales price is used. So, I vote for face value.

 

[noname87]

In some ways that makes sense but in other ways it doesn't which is why I asked the question in the first place.

For municipal bonds, I was told that the alternate evaluation is the value at the six month date or if sold the then the sale price (less the accrued interest) plus the accrued interest up to the date of death. Since the treasure matured, any increase in the value of the treasure since death is pure interest. So way isn't it treated like a municipal bond. I realize it is a lot to ask for the tax code to make sense. I just wished that I sold the bonds instead of allowing them to mature four months later.

 

[Dandy Don]

This question belongs on the tax law message board or better yet, by consulting with a local CPA or tax accountant experienced in estate matters.

 

[noname87]

Thanks for the suggestion. I will try there.

My accountant seems clueless (yes I need a better one). The estate lawyer admits to not understanding treasures and has given me conflicting advice. At $300 dollars an hour I am trying not to pay him to research this and to better understand the issue before I go back to him. It is too late to switch horses as far as the lawyer is concerned.