3.1.1.7 Divergent valuation rules

The valuation of assets is an issue on which the diverse national legislation varies considerably. Some states consider the sale/fair market value of the property at the time of the deceased’s death, others the cadastral value, and yet another may also consider a date after the deceased’s death to value the assets. Consequently, two states may value the same property differently. Furthermore, the general valuation rules may grant several exemptions for specific kinds of property (for example, life insurance, non-interest-bearing financial assets, usufruct, undeveloped immovable property, listed stocks and shares, bonds, founders’ shares, and state bonds). Therefore, it is likely that the state of the objective nexus will ascribe the property a higher value than the state of the personal nexus. If the latter state relieves double taxation by means of credit, one can observe that it may credit the taxes assessed under its domestic valuation rules. Double taxation could remain, however, with respect to the difference of the value of the property between the two states.