Date of Death & Estate Update Appraisals
USPAP-compliant retrospective appraisals for estate settlement, stepped-up basis, and capital gains minimization.
What Is a Date of Death Appraisal?
When a property owner passes away, the IRS requires that real estate be appraised at its Fair Market Value (FMV) as of the date of death. This retrospective appraisal establishes the stepped-up cost basis, which can significantly reduce capital gains taxes, for the heirs when the property is sold in the future. Our certified appraisers provide court-ready, USPAP-compliant reports accepted by the IRS, probate courts, trustees and estate attorneys throughout Orange County, Ca.
What Is a Date of Death Appraisal?
Date of Death Valuation
A DOD appraisal determines the Fair Market Value of the property as of the date of passing, based on the home’s condition at that time.
It is best to order this within 1–3 months while market data is fresh and readily available.
Retrospective Date of Death Valuation
If the appraisal is requested months or years later, the appraiser researches market data from the original date of death and values the property in the same condition it was in in that time period.
Many families don't realize they need this appraisal
For estate tax purposes or disposition of the assets of a decedent, a Date of Death valuation is often required — yet many Executors and family members are unaware. If any improvements have been made After the date of death, the appraiser needs to be informed. In some cases, the Executor may choose an Alternate Valuation Date (six months after the date of death). The same principles apply. The Appraiser needs to be notified about this Change of Date, to pull the correct market data.
Estate or Trust Appraisals
Estate settlement appraisals establish the current fair market value of real property for distribution among heirs, trust administration, or sale. Whether the estate is going through probate or being administered through a living trust, an independent certified appraisal is essential.
Estate Update Appraisals: Estate Executors may request an updated market analysis approximately every 5 years — particularly for ongoing trusts, long-term estate administration, or when property values have shifted significantly since the original appraisal.
Fair Market Value (FMV) is defined as the price at which property would sell between a willing buyer and a willing seller, with under any pressure to buy or sell, and both having reasonable knowledge of the relevant facts.
This is the standard used by the IRS, California courts, and estate attorneys for probate, trust administration, tax reporting, and estate settlements.
Why It Matters
An accurate FMV appraisal — prepared by a State Certified Appraiser and compliant with USPAP standards — protects heirs from overpaying taxes, satisfies court and IRS requirements, and provides a defensible, independent valuation that holds up to scrutiny.
Why the Stepped-Up Basis Matters
When someone inherits real estate, the IRS allows the property's value to be "stepped up" to its Fair Market Value (FMV) as of the date of death. This adjustment can significantly reduce — and often eliminate — capital gains taxes when the property is sold. Without a proper Date of Death appraisal, heirs may be taxed on gains that never actually occurred, resulting in unnecessary tax liability.
Example: A Laguna Woods Village co-op purchased for $85,000 in 1995 may be worth $450,000 today. Without a proper Date of Death appraisal, heirs could owe capital gains taxes on the full $365,000 appreciation. With a stepped-up basis established by a qualified appraisal, that tax liability may be reduced to zero.
A qualified appraisal is required by the IRS to substantiate the stepped-up basis. Our reports meet all IRS requirements under IRC §1014.
What's Included in the Appraisal Report
You need a professional real estate appraiser bound by USPAP for the confidentiality, accuracy, and professionalism required by taxing authorities and the courts.
MLS Research Criteria Search
Covering the last 12–36 month period for the subject property type and market area.
Market Statistics Data
For all product types (square footage, lot size, etc.) within the market search area.
Market Sales Graph
Going back approximately 3 years for the product search criteria, showing the market trend over time.
USPAP-Compliant Report
Prepared to the standards taxing authorities and courts need — with full confidentiality and professionalism.
Our Appraisal Process
Ready to get started? Call Sue at (714) 328-3115 or request a quote online.
Engage & Document
We gather the property address, date of death, and any available records. We confirm the scope of work and turnaround timeline with the estate attorney or executor.
Historical Research
We research comparable sales active on or near the date of death using MLS archives, public records, and proprietary databases to reconstruct market conditions.
Property Inspection
We inspect the subject property (or use available records for retrospective dates) to document condition, features, and any factors affecting value at the relevant date.
Certified Report Delivery
We deliver a USPAP-compliant written appraisal report, signed and certified, ready for IRS submission, probate court, or estate settlement — typically within 5–7 business days.
Need a Date of Death Appraisal?
We work directly with estate attorneys, executors, CPAs, and families throughout Orange County. Contact us today for a prompt, professional consultation.
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