Detailed Answer — How estate assets are valued for a surviving spouse’s statutory elective share under Alaska law
Short answer: To determine a surviving spouse’s elective share in Alaska you generally (1) identify the “augmented” estate by adding back certain probate and nonprobate transfers, (2) value included assets as of the decedent’s date of death (or by another statutory valuation method), and (3) subtract valid debts and administration expenses before applying the statutory share fraction. Which specific transfers are added back and which valuation date applies depends on Alaska law and the facts. See Alaska Statutes, Title 13 — Decedents’ Estates: https://www.akleg.gov/basis/statutes.asp#13.
What the elective-share valuation process looks like
- Define the base: probate estate. Start with the value of assets that pass under the decedent’s will and other probate property after paying estate debts and administration costs.
- Add nonprobate items required by statute (the “augmented” estate). Many states require adding certain nonprobate transfers to prevent a testator from defeating a spouse’s elective share by shifting assets to nonprobate forms. Typical additions include (to the extent Alaska law applies):
- Assets in revocable trusts or transfers the decedent reserved the right to revoke.
- Property passing by joint tenancy or tenancy by the entirety if intended to pass outside probate.
- Payable-on-death (POD) and transfer-on-death (TOD) account balances and beneficiary-designated retirement plan benefits and life insurance proceeds (sometimes only to the extent the decedent retained an interest).
- Gifts and transfers made within a statutory look‑back period before death (some statutes limit how far back); also transfers made in contemplation of death.
- Assets over which the decedent retained a power of appointment.
Whether each category is included and any time limits are matters of statute and case law; review Alaska statutes and consult counsel for the exact list and limits that apply in your situation (Alaska Statutes Title 13: https://www.akleg.gov/basis/statutes.asp#13).
Valuation date and valuation method
Most commonly, the value of each included item is determined as of the decedent’s date of death. That means:
- Use the fair market value at death for real property and publicly traded securities.
- Use appraisals for closely held businesses, real estate, artwork, and other unique assets; obtain written appraisals when values are significant.
- Value retirement accounts and life insurance as of the date of death (or account value then), but apply offsets for beneficiary designations when appropriate.
- When transfers are added back (for example, a gift given during life that a statute includes), the statute may require valuing the gift either at the time of transfer or at death — check the specific Alaska provision.
After valuing all included assets, subtract estate debts, funeral expenses, and probate administration costs to get the net augmented estate used to compute the elective share.
Practical adjustments and offsets
- Credit for beneficiary receipts: If the surviving spouse already received property from the decedent (for example, joint-account distributions or lifetime gifts), Alaska law may require crediting those amounts against the elective share.
- Liabilities tied to specific assets: Mortgages and secured debts reduce the net value of those assets for valuation purposes.
- Income tax and estate tax considerations: Certain tax consequences may affect net values; get tax or legal advice if large retirement accounts or tax attributes are involved.
Illustrative hypothetical (numbers are illustrative only)
Assume for illustration that the augmented estate includes $300,000 probate assets, $200,000 in a revocable trust added back, a $50,000 POD account, and $150,000 life-insurance proceeds included by statute. Total gross augmented estate = $700,000. If estate debts and administration costs are $100,000, the net augmented estate = $600,000. If the applicable elective-share fraction were one‑third (this is hypothetical and for illustration only), the surviving spouse’s elective share would be one‑third of $600,000 = $200,000, with credit for any amounts already received by the spouse.
Where to confirm the precise rules and numbers
Alaska’s decedents’ estates statutes govern which transfers are added back, valuation rules, and procedural deadlines. For the statutory text and current law, see Alaska Statutes, Title 13 (Decedents’ Estates): https://www.akleg.gov/basis/statutes.asp#13. Because statutes and rules can change and statutes can be interpreted by cases, consult a probate attorney in Alaska for a precise calculation and to learn about filing deadlines and procedural steps.
Disclaimer: This article explains general principles and hypothetical examples and is not legal advice. It does not create an attorney-client relationship. For guidance about a specific Alaska estate or elective-share claim, contact a licensed Alaska attorney.
Helpful Hints
- Start by getting an inventory: gather account statements, trust documents, deeds, beneficiary designations, and gift records.
- Use date-of-death values: obtain professional appraisals for real estate, businesses, and valuable personal property.
- Look for beneficiary designations and joint‑ownership documents — nonprobate transfers can be added back.
- Check for a statute of limitations or a deadline to file an election; do not wait to consult counsel.
- Ask about credits: note any amounts the surviving spouse already received; those often offset the elective share.
- Consider tax impact: large IRAs or retirement plans may have tax consequences that affect the practical value of what the spouse receives.
- Keep documentation: appraisals, bank statements, trust instruments, and correspondence will be crucial if you must litigate or negotiate an elective-share claim.
- Consult a local Alaska probate attorney early — elective-share calculations are detail‑heavy and fact specific.