InstantForum.NET v4.1.4California Society of CPAshttp://forums.calcpa.org/forums@calcpa.orgFri, 19 Mar 2010 16:57:51 GMT20http://forums.calcpa.org/Topic536-2-1.aspxRetired Estate Tax Attorney Joe Stemach used to speak about this frequently. He noted that he rarely saw discounts for the first to die for the reasons you cite; avoiding capital gains tax and maximizing depreciation. He thought that having a 50% interest in a trust at the second death was no different than having a 50% CP interest at the first death and was reluctant to allow discounts at the second death.</P><P>The reason that you may want a discount at the first death is to cram more assets into a Bypass trust.Tue, 29 Apr 2008 18:26:23 GMTMary Kay Fosshttp://forums.calcpa.org/Topic536-2-1.aspxI believe that if you have an appraisal by a professional that you should use it. If you found any discrepancies on the appraisal - such as not showing the correct owner for example, you should contact the appraiser to see if they can fix it.</P><P>I have always told my clients that if they did not get an appraisal, we may be able to use a 15% discount based on court cases but that a larger discount would be available with an appraisal. With the stricter rules about valuation in the Internal Revenue Code and the new AICPA standards and the more likely than not, I don't think I'll be venturing a opinion about taking a discount without an appraisal any more. I think that you're fine with using the appraisal that you have and I don't think the more likely than not will apply when you're relying on a professional.Fri, 08 Feb 2008 14:29:24 GMTMary Kay Foss