Estate tax valuation plays a critical role in determining the taxable value of a deceased individual’s assets in the United States. It establishes the fair market value of property transferred at death, forming the basis for calculating federal estate tax obligations. Accurate estate tax valuation ensures compliance with tax laws and helps prevent disputes with tax authorities.

In the USA, estate tax valuation generally reflects the fair market value of assets on the date of death. This includes real estate, closely held businesses, investments, personal property, and other financial interests. In some cases, an alternate valuation date may be applied if it reduces both the gross estate and overall tax liability, in accordance with federal regulations.

Valuation methods vary depending on asset type. Real property is often appraised using comparable sales data, while business interests may require income-based or market-based approaches. Discounts for lack of marketability or minority ownership may also apply under specific circumstances.

Thorough documentation and professional appraisals are typically necessary to support reported values. Proper estate tax valuation promotes transparency, ensures regulatory compliance, and supports accurate tax reporting within the United States legal framework.