EstateVal has been very carefully tested to make sure that all its methodology exactly matches IRS regulations. However, there are a few parameter settings that you can modify to make the calculations performed more closely match what you need. Below are five settings you can change in the Methodology Options Dialog:
1. Stale Price: Sometimes, a security will only price occasionally, and EstateVal can be set to ignore older prices as "stale," or no longer representative of the value of the security. By default, the "Days for Stale Price Flag:" is set to "30," meaning that if the newest price is over a month old, it will not be used. You can change this setting to suit your needs.
2. Full Coupon: If, on the date of death, a full coupon for a bond has matured, you can tell EstateVal if you would like the amount of the coupon added to the report, or if you would simply like a note telling you that the full coupon has been paid. The default for "For Full Coupon on Date of Death:" is set to "Comment," to reduce the chance that you will unintentionally declare the amount of the coupon twice, once on the report and once as the cash received. You can set it to "Amount" if you would like the coupon counted in the report.
3. Mortgage Backed Options Input: When entering the par for Ginnie Maes, Fannie Maes and Freddie Macs, you can type either the face amount of the mortgage-backed security, or the principal that remains. In either case, however, you must make sure that the "Mortgage Backed Options:" parameter matches what you entered. If you entered the face amount (in other words, if the par is evenly divisible by 5000), then this setting should read "Input Face Amount." If you entered the remaining principal (and, thus, the par will include a decimal point), it should be "Input Remaining Principal."
4. "Flower" Bonds: "Flower" bonds are a special class of bond that can be valued at par if they are used to pay estate taxes, even if their actual price is less than that. If "Value 'Flower' Bonds at Par:" is set to the default, "No," these bonds will be priced as normal. If changed to "Yes," any "Flower" bond that is pricing below face value will be reset to par and a comment will be added to the report.
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