When a dividend or stock split occurs, EstateVal and the other EVP Office applications handle it according to IRS regulations. Specifically, the following situations are all accounted for: Securities trading ex-dividend Securities trading ex-dividend on a forward pricing date Pricing where the deceased is a holder of record on an unpaid dividend Stock splits between […]
IRS Regulation § 20.2031-2 (b) 1 addresses inversely weighted means. Means are inversely weighted with respect to the number of trading days between the valuation date and pricing dates. Since markets were closed, for example, from September 11, 2001 through September 14, 2001, the weighting should not apply and means are derived from a straight […]
Series H/HH Bonds are redeemable at par on demand. If a bond is redeemed before final maturity, interest ceases as of the end of the interest payment period preceding redemption. Thus, Series H bonds are valued at par for estate tax purposes, without including any accrued interest.
United States Treasury Bills and Series E/EE Bonds are simple securities that can suddenly become very confusing when they are evaluated on the Alternate Date. They don’t seem to follow the rules—the value that appears on the Alternate Date report is exactly the same as the value that appeared on the Date of Death! Other […]
Mortgage-backed securities can be very complicated. That’s because mortgage-backed pools have several components that must be included in Date-of-Death and Alternate Date valuations. Variables in mortgage-backed securities include the market value of the remaining balance, interest accruing throughout the current interest period, any accrued principal from prior months and any accrued interest from prior interest […]
EVP Systems gets its mutual bond prices from Intercontinental Exchange (ICE). Through ties within the municipal bond community, ICE gets information each day on actual municipal bond sales. They use that information to estimate movements in the market for bonds and for the issues of particular municipalities. Market conditions are combined with descriptive information on […]