A date-of-death appraisal establishes the fair market value of a property as of the exact date someone passed away. This valuation is essential for estate settlement, IRS estate tax reporting, and calculating the stepped-up cost basis that heirs use when they eventually sell the property. Without a credible date-of-death appraisal, families risk overpaying taxes or facing IRS challenges during probate.
Executors, attorneys, and families typically need a date-of-death appraisal when settling an estate, filing IRS Form 706 (Estate Tax Return), distributing assets among heirs, or establishing the stepped-up tax basis for inherited real estate. If a property was held in a living trust, the same valuation is needed to properly administer the trust and report to beneficiaries.
I research the local real estate market as it existed on the date of death, analyzing comparable sales that closed around that time to determine what the property would have sold for on that specific date. This is a retrospective appraisal, meaning I look backward at market conditions rather than at today's values. The final report includes a detailed description of the property, comparable sales analysis, market conditions, and a well-supported value conclusion.
All date-of-death appraisals are prepared in full compliance with USPAP (Uniform Standards of Professional Appraisal Practice) and meet the documentation requirements of the IRS, probate courts, and estate attorneys. With over 20 years of experience and hundreds of date-of-death appraisals completed throughout the Coachella Valley, my reports are trusted by attorneys, CPAs, and courts across Riverside County.
When you inherit real estate, the IRS allows you to "step up" the property's cost basis to its fair market value as of the date of death. This means if you later sell the property, you only pay capital gains tax on the appreciation that occurred after the date of death, not from the original purchase price. A professional date-of-death appraisal documents this stepped-up value and can save heirs significant money in capital gains taxes.
Date-of-death appraisals start at $299 for standard residential properties in the Coachella Valley. Complex estates or properties requiring extensive historical research may be quoted individually.