Stock-Estate Taxes ?

No Federal Estate Tax Return is required for a $700K estate, but state filing thresholds may be lower. Stock gains are measured relative to the FMV of the stock on the date of death (or alternate valuation date). They are long-term by definition and it size of the gain/loss is the same whether they are sold by the estate or the beneficiaries. (Note however, that the size of the tax liability may vary depending on who makes the sale.)

Ira Smilovitz

As a minor clarification to the above, you would use date of death values to determine gains since the alternate valuation date is only available if it reduces the estate tax and hence not applicable for an estate valued below the estate tax exemption, which is currently $2 million.

Under what circumstance can an alternate valuation date be used to reduce the estate tax? Or am I misunderstanding what has been said here?

========================================= MODERATOR'S COMMENT: As the poster said, AVD applies only when it reduces the Federal Estate Tax on Form 706, and is applied to all or none of the property.

First of all have to satisfy the terms of any will and/or probate as far as the disposition of assets.

Note that under current law the basis in the stocks would step-up to FMV if passed on to whoever is to inherit whereas the estate would have the basis at which they were purchased. Since the estate is below the level of (federal) liability, it would seem from afar prudent to pass them on rather than selling from simply that pov. Of course, the estate may need revenue for final expenses and so on or there may be other confounding issues, not the least of which is the State.