Date of Death Appraisals

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Date of Death Appraisals

Bixby Appraisal Group specializes in “date of death” appraisals for estate tax purposes, probate, and trusts, ensuring compliance with IRS and California legal standards. These appraisals calculate the fair market value of real estate as of the specific date of the owner’s passing, helping executors, attorneys and accountants. 

What is a Date of Death Appraisal?

A Date of Death Appraisal is an evaluation of a property’s value at the date of an individual’s death.  This type of appraisal is often needed for estate settlement. It is especially needed for inheritance tax or probate. The goal is to find the fair market value of the assets when the decedent passed away.  Qualified real estate appraisers do these appraisal reports. Appraisers consider many factors to find an accurate valuation. This ensures a fair distribution of assets among heirs or for tax purposes.

IRS Guidelines for Date of Death Appraisals

The IRS provides specific guidelines for Date of Death Appraisals, particularly for estate tax reporting.  Key points include:

  • Valuation Date: The primary date for asset valuation is the date of death.
  • Qualified Appraiser: Appraisals must be performed by a professional with appropriate education and experience.
  • Appraisal Report: A detailed written report is required, including the property description, valuation methods, and appraiser qualifications.
  • Fair Market Value (FMV): The appraisal must define the FMV as “the price a willing buyer and willing seller would agree upon, with both having reasonable knowledge of relevant facts and neither under compulsion to act.”
  • Substantiation: Accurate records and documentation are vital to support reported values on estate tax returns.
  • Penalties: Inaccurate valuations can lead to IRS penalties.

Consulting with tax professionals or estate planners is highly recommended to ensure compliance.

If you need assistance in a date of death appraisal, or you have any questions about estate planning, don’t hesitate to contact us at Bixby Appraisal Group.  We are ready to help and guide you through the process.  Call us at (310) 560-8156.