[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR20.2031-4]

[Page 268]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954--Table of Contents
 
Sec.  20.2031-4  Valuation of notes.

    The fair market value of notes, secured or unsecured, is presumed to 
be the amount of unpaid principal, plus interest accrued to the date of 
death, unless the executor establishes that the value is lower or that 
the notes are worthless. However, items of interest shall be separately 
stated on the estate tax return. If not returned at face value, plus 
accrued interest, satisfactory evidence must be submitted that the note 
is worth less than the unpaid amount (because of the interest rate, date 
of maturity, or other cause), or that the note is uncollectible, either 
in whole or in part (by reason of the insolvency of the party or parties 
liable, or for other cause), and that any property pledged or mortgaged 
as security is insufficient to satisfy the obligation.