>>Unfortunately, one of our partners passed away last week.
Is there anything we need to do in particular in
distributing their account.  The estate has already
contacted us for a valuation on date of death.  Does that
amount need to be paid to the estate or the FMV at the time
of settlement?

Review your partnership agreement. If your partnership agreement follows the NAIC model, receipt of notice of the death of a partner is treated as a request for a full withdrawal. Follow your procedures for processing a full withdrawal.

 

The executor of the estate asked you the valuation on the date of death for purposes of determining if estate tax is due. Unless the date of death was one of your club's valuation dates, you should provide the deceased member's account valuations on the valuation date just prior to death and the one just after death. There are approved methods for the executor to follow to determine the value at death from these data. You shouldn't generate a separate valuation on the date of death just because a member died.

 

Ira Smilovitz