Section 2801: Determining Transfer Value

Offshore Tax with HTJ.tax · May 6, 2026 · 1m

Once you’ve established that Section 2801 of the Internal Revenue Code applies, the next critical step is:👉 What is the transfer worth?Because under §2801, value = tax base.⚖️ 1️⃣ The Core Rule: Fair Market ValueValuation follows standard U.S. transfer tax principles:👉 Fair Market Value (FMV)Defined as:• The price a willing buyer and seller would agree • With both parties having reasonable knowledge • And neither under compulsion⏳ 2️⃣ Timing Matters📌 Outright Transfers• Value is determined at the date the recipient receives the property🔄 Trust Distributions• Value is determined when the U.S…