Date of Death Appraisals

Estate and Trust appraisals MUST meet these four legal standards.

1. United States Treasury Department Standards

2. State of California laws,

3. IRS Standards

4. Uniform Standards of Professional Appraisal Practice (USPAP*).

For that reason, it’s important that the intricate task be delegated to a highly competent real estate appraiser.

“Estate and Trust appraisals have been required to comply with USPAP since July 30, 2018, and can only be completed by a State Certified Real Estate Appraiser.”

Date of death appraisals are crucial for executors when liquidating a home after the owner dies.

As a homeowner who has been entrusted with the responsibility of settling an estate, we understand that this can be a stressful and emotional time for you. However, it is essential to carry out the wishes of your loved one as quickly and respectfully as possible.

Why is a Date of Death Appraisal Required?

This type of appraisal is required for tax purposes and stepped-up basis. The appraisal is essentially used to establish whether a federal estate tax return is payable to the IRS, and the amount of estate tax, if one is owed.

All property owners have done some estate planning for the distribution of their estate to their heirs whether they are aware of it or not. Without a will or a trust the inheritance laws (laws of intestacy) of your state will determine how your property will pass to your heirs. 

If you have no heirs that fit the state's formula, the assets will be taken by the state. Often times the state's formula and rules for moving assets to your heirs will not be what you would have chosen if you had done some planning.

One of the best ways to get your estate over the in-testate chasm is to build a bridge, otherwise known as a trust, to your heirs.

This provides for the estate to be taken safely over the financial risks that are posed by creditors, probate, estate taxes, and the legal system.

When should the Date of Death Appraisal be done?

The sooner the better. In many cases, date of death appraisals are ordered between 2 to 6 months after the death of a loved one.  For those who aren’t able to handle these details immediately after their loved one’s death, we can do a retrospective appraisal for them.