Question ID: $1251998$

Darwin, age $60,$ has an estate valued at $$15$ million. Included in the valuation of his estate are the following:

A small U$.$S$.$ Treasury note that is subject to changes in market value

One$-$half ownership in Coeur d'Alene Estates, a private real estate development owned as a joint tenant with rights of survivorship with his sister, Anne

$800,000$ shares of Untell Inc., a public corporation traded on a major exchange; $50,000$ shares of this stock are traded daily

A joint and last survivor annuity that names his daughter, Ruthie, as the surviving annuitant

When Darwin dies, which one of the following valuation techniques would most effectively reduce the value of his gross estate, and why?

A$)$

A blockage discount on the publicly traded stock, because the stock is difficult to sell on a public exchange at one time and in such a large quantity

B$)$

The alternate valuation date on the joint and last survivor annuity, because the value of the annuity will be less in six months than it is on the date of Darwin's death

C$)$

The date$-$of$-$death fair market value for the U$.$S$.$ Treasury note, because it would reflect the current market price if the value of the Treasury note decreases

D$)$

A co$-$ownership discount on the real estate development, because it would be difficult to find a buyer for the real estate six months after the date of Darwin's death