[WSBAPT] What valuation date should be used?

[Philip N. Jones]

The six-month rule is an estate tax election, not a valuation/distribution election.
First, check the will or trust for any valuation/distribution language.
Then check the will or trust for language that permits non-pro-rata distributions.  Such language is fairly common.
Then check the will or trust for language that permits distributions without regard to differences in tax basis.  Such language is also fairly common.
But back to your question:  I am not aware of a hard-and-fast rule, but I would tend to not use date of death, or tax basis which is likely the same value.  Given the fact that six years have gone by, those values will be way out of line.  So I would vote for current fair market value.
To state the obvious:  Don't distribute anything unless you can get all (both?) of the siblings to agree in writing to the plan of distribution, being fully informed as to tax basis.  If they can agree on values, fine.  Otherwise, you need appraisals.  Or a carefully worded agreement.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Bryce Dille
Sent: Tuesday, August 29, 2023 2:13 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] What valuation date should be used?

You can use the 6 months after date of death for valuation tax purposes but if cant agree PR can sell the property and divide proceeds you cant force the heirs to accept property in lieu of cash distribution unless a parcel is conveyed to all heirs entitled thereto as tenants in common so absent an agreement you can't  distribute one parcel to one heir and cash to another based on an arbitrary valuation

Bryce H. Dille
Dille Law, PLLC
2010 Caton Way SW Ste. 101
Olympia, WA 98502
Office: 360-350-0270
Cell: 253-579-5561

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Shannon Jones
Sent: Tuesday, August 29, 2023 1:54 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] What valuation date should be used?

I would think date of death as that will be the recipient's tax basis in the property - Shannon

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Julie Martiniello
Sent: Tuesday, August 29, 2023 1:22 PM
To: Trust and Probate Section <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] What valuation date should be used?

Hello All,

I have a fact pattern where multiple pieces of real estate are to be distributed between siblings. Father died 6 years ago and nothing was done. Siblings are in agreement to divide assets 50/50, but want to divy up the properties vs own them together. However there is a disagreement on if the split should be based on date of death values vs current values. Is there a hardline rule on this I am unaware of if the parties cannot agree?

--

Respectfully,

Julie Martiniello, Partner
Dimension Law Group, PLLC
Office:  206-973-3500│Fax:  206-577-5090
Email: julie at dimensionlaw.com<mailto:synthia at dimensionlaw.com>
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