Investment You Would Rather Be... Full Size Version Related Content Understanding the Alternate Valuation Date Executors can value the estate on the date of death, or on its six-month anniversary —the “Alternate Valuation Date." What If You Get Audited? The chances of an IRS audit aren't that high. And being audited does not necessarily imply that the IRS suspects wrongdoing. When Life Insurance Becomes Taxable Life insurance proceeds are generally tax-free. But not in all cases.