most suitable use valuation

most suitable use valuation
For gift and estate tax purposes, property that is transferred normally is valued in accordance with its most suitable or highest and best use. Thus, if a farm is worth more as a potential shopping center, this value will control even though the transferee (i.e., the donee or heir) continues to use the property as a farm.
For an exception to this rule concerning the valuation of certain kinds of real estate transferred by death, see special use valuation

Black's law dictionary. . 1990.

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