The fair market value of notes, secured or unsecured, is presumed to be the amount
of unpaid principal, plus interest accrued to the date of death, unless the executor
establishes that the value is lower or that the notes are worthless. However, items of interest shall be separately stated on the estate tax return. If not returned at face value, plus accrued interest, satisfactory evidence must
be submitted that the note is worth less than the unpaid amount (because of the interest
rate, date of maturity, or other cause), or that the note is uncollectible, either
in whole or in part (by reason of the insolvency of the party or parties liable, or
for other cause), and that any property pledged or mortgaged as security is insufficient
to satisfy the obligation.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.