Discussion of Kohler Case

The discussion of the Kohler case, posted on March 4, 2008, requires an update.  The Internal Revenue Service has issued Proposed Regulations, Section 20.2032-1(f) which provide that the election to use the alternate valuation can be utilized only to the extent that the change in value during the six-month period is a result of "market conditions."  For this purpose, "market conditions" means events outside of the control of the decedent or his executors.  When adopted as final regulations, the rules will be made applicable to estates of decedents dying on or after April 25, 2008.  Thus, the result in Kohler is reversed.