Date of Death Appraisal Explained

A Date of Death Appraisal is a critical step in managing a loved one’s estate, whether it’s in probate or trust administration.

This appraisal determines the fair market value of the property as of the date your loved one passed away. It’s a critical part of the probate process and can also be helpful in trust administration.

In this video, we explain why a Date of Death Appraisal is necessary:

- Legal Requirement: In probate, the court requires this appraisal to verify the property’s value.

- 90% Rule: The appraisal helps ensure the property is sold for at least 90% of its appraised value, avoiding court intervention.

- Tax Purposes: The appraisal establishes a stepped-up basis, which can reduce capital gains taxes for heirs when the property is sold.

We also discuss how the appraisal is conducted. In probate cases, a probate referee (a court-appointed appraiser) evaluates the property. In trust cases, a licensed appraiser may be used. The process can take several months, so it’s important to start early.

Finally, we share tips for working with your attorney and real estate professional to ensure the appraisal is accurate and doesn’t delay the sale. Watch this video to learn how a Date of Death Appraisal can protect the estate and make the process smoother for everyone involved.