Calculate fair market value of mutual funds after a death

Here’s an easy way to determine fair market value

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From the September/October 2015 issue of the magazine.

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Q: How do I calculate the fair market value of my parent’s mutual funds when it comes to probate fees, executor fees and capital gains tax? The funds were jointly held by both of my parents up to and at their death.

 —Kamal Singh, Toronto, ON

A: Calculating fair market value (FMV) on assets can sometimes be really tough. Thankfully, in this case, the answer is easily found, says Lenore Davis, Senior Partner at Dixon, Davis & Company in Victoria. “Simply visit the website of the company that runs the fund and search for market value on the date of death. If both parents died on the same day, each person’s share is 50% of FMV.  If they died at different dates, then you need to search both dates.” Good news since the role of executor—the person tasked with filing the deceased’s last tax return and for sorting out the estate—can be complicated enough.

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