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NACVA Accredited Valuation Analyst Exam Questions 141–145 (page: 30)

Updated On: 9-Feb-2026

The practical effect/s of Special Valuation Rules is/ are:

  1. Cumulative dividends or distribution rights
  2. Non-voters having voting rights
  3. Flexible and optional redemption rights
  4. Non-lapsing conversion rights

Answer(s): A,D



There is an additional___________ valuation rule, which requires that the appraiser determine whether any of the extraordinary payment rights, if exercised in conjunction with any qualified distribution rights, would lower the total value of the preferred security.

  1. Lower of
  2. Separate Command
  3. Mandatory redemption rights
  4. Lower in

Answer(s): A



There are some factors that determine whether the buy-sell agreement is conclusively binding for estate tax purposes. Which of the following is/are out of those factors?

  1. The agreement must restrict the transfer of the securities to the buy-sell price during the owner’s life as well as at death.
  2. There must be a valid business purpose for establishing the agreement
  3. The value may not refilect those typical of arm’s length transactions in the subject company’s industry
  4. The value established in the agreement must have been an adequate and fair price at the time the agreement was executed

Answer(s): A,B,D



With respect to the contents,___________ must include:
1. The date of the appraisal
2. The date of the transfer
3. The purpose of the appraisal
4. The description of the property
5. A description of the assumption utilized
6. A description of the appraisal process employed, including the valuation method utilized
7. A description of any hypothetical conditions considered etc.

  1. Applicable valuation restrictions
  2. Appraisal report
  3. Three-year gift tax statute of limitations
  4. Lapse of certain rights

Answer(s): B



The remainder interest is valued:

  1. By taking the security’s appraised fair market value and discounting it to a present value under the IRS actuarial tables based on seller’s projected remaining life.
  2. By self-canceling installment note
  3. By taking the security’s appraised fair market value and discounting it to a present value under the IRS actuarial tables based on seller’s projected remaining life.
  4. By sale of a private annuity

Answer(s): A



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