Legal Question in Wills and Trusts in Georgia

Re: inheritance tax

For estate tax purposes, date of death value is generally used. Under certain limited circumstances, an alternative valuation date (six months after date of death) may be elected.

For income tax purposes, there is a step-up in basis that occurs on the date of death. For example, A buys property (Blackacre) for $10,000. A's original basis is therefore $10,000. Value of Blackacre appreciates over time to $100,000 on the date of A's death. A's will leaves Blackacre to B. B will receive Blackacre with a new stepped-up basis of $100,000.

For local property tax purposes, tax is going to be based on most recent county assessment -- not necessarily tied to fair market value of the property at date of death or otherwise.

Hope this helps.

Re: inheritance tax

For Federal estate tax purposes, property is valued on the date of death unless the alternative valuation date is elected on the estate tax return. State inheritance tax laws differ, but are generally in alignment with the federal valuation date.

Consult with an attorney experienced with estate tax returns for further information.