Jim inherits stock from his brother, who died in March of 2015, when the property had a $6.9 million FMV. This is the only property included in his brothers gross estate and there is a taxable estate. The FMV of the property as of the alternate valuation date was $6.7 million.

a) Why might the executor of the brothers estate elect to use the alternate valuation date to value the property?

b) Why might Jim prefer the executor to use FMV at time of death to value the property?

c) If the marginal estate tax rate is 40% and Jim's marginal income tax rate is 25%, which valueshould the executor use?