Markets· August 16, 2026 at 08:48 p.m.
Executors Can Delay Estate Valuation to Reduce Tax Bill During Market Downturns
Key takeaways
- Executors can delay the valuation of estates for six months after death to potentially reduce federal estate tax bills
- The VIX peaked at 31.05 on March 27, 2026, making the six-month window particularly relevant this year
- Only taxable estates qualify for the alternate valuation date election
Executors of estates in the United States have the option to delay the valuation of assets for six months following the date of death, potentially reducing the federal estate tax bill if markets experience a downturn during that period. This mechanism, known as the alternate valuation date election, is codified in Internal Revenue Code Section 2032 and is made on Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return.
