For example, this may apply to land that has become surrounded by highly developed or valuable land. To receive this treatment the following requirements must be met. The property must be used in a trade or business and must be on U.S. soil at the date of death. The heir must have been a material participant in the business for 5 of the last 8 years prior to the owner's death. Special use valuation will result in a lower basis in the property for capital gains purposes.
Adjusted value is the market value of the property less unpaid mortgages or debts.
Charitable Remainder Trusts allow you to retain a certain percentage of income while transferring the rights in the property to a trust. At death or a specified number of years, the charity receives the property. Charitable Lead Trusts allow you to retain the rights to the property, held in trust, while giving the charity the income interest. Your estate tax deduction depends on the number of years the charity receives the income and the investment performance of the trustee. When the term of the trust has ended, the remaining assets are distributed to the donor or his heirs.