Valuations involving decedents who died in 2010 require special treatment

There is a new estate property transfer procedure for decedents who died in 2010, “Generally, for decedents who died in 2010, the transferee's basis in the acquired property is the lessor of the decedent's basis in the property or the fair market value of the property on the date of death,” says Robert F. Reilly (Willamette Management Associates) in the latest issue of WMA’sInsights.

“The transferee property modified carryover basis procedures became effective on January 1, 2010, and they are effective only for 2010. Lawyers, accountants, and other estate advisers will have to become familiar with a complex set of procedures related to the administration of a 2010 decedent’s estate. The burden on estate executors and other estate advisers to gather the necessary information to comply with the carryover basis procedures, especially finding the decedent’s basis in certain transferred property, may be quite significant,” adds Reilly.

Click here for the article “Transferee’s Basis in Estate Property Acquired from a Decedent Who Died in 2010.”