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Mary dies in 2016, and included in her gross estate are the following assets: Fair Market...

Mary dies in 2016, and included in her gross estate are the following assets:

Fair Market Value
Date of Death    Six Months Later  
Stock in Orange Corporation $3,000,000 $3,100,000
Stock in Crimson Corporation $6,100,000 $5,900,000

a. How much is included in her gross estate if the alternate valuation date is elected?
$

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Answer #1

In case of death of an individual, the personal representative has an option to select Fair Market Value on the date of death or on alternate valuation date. The alternate valuation date value is the fair market value of all assets included in the decedent’s gross estate, six months after the date of death.

In the given case, the value Six Months Later are shall be considered.

Mary's Gross Estate = $3,100,000 + $5,900,000 = $9,000,000

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