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Date of Death
Welcome to Home Point Appraisal, Your Trusted
Real Estate
Date of Death
Appraiser
A Date of Death Appraisal is a retrospective property valuation that determines the fair market value of real property as of the date of an owner’s passing. This valuation is required for IRS Form 706 estate tax filings, supports the step-up basis that heirs receive on inherited property, and frequently anchors probate proceedings and inheritance distributions among heirs. The appraisal must be USPAP-compliant and structured to meet IRS qualified appraisal standards.
High Volume, Defensible Track Record
Glenn has extensive experience performing retrospective date of death appraisals and is well versed in the unique reporting requirements associated with estate valuations. The vast majority of completed reports are submitted to the IRS as supporting documentation for Form 706 estate tax filings, with no follow-up examination or value challenge required. That track record reflects defensible methodology — IRS examiners look for retrospective comp selection, market conditions analysis, and adjustment support that mirrors what would be expected in a contemporaneous appraisal. Reports that meet those standards rarely get challenged.
Retrospective Methodology
The effective date of value is the date of the decedent’s passing — not the current market. This requires retrospective comp analysis: identifying comparable sales that closed near (typically within 90 days of) the date of death, analyzing market conditions in effect on that historical date, and applying adjustments that reflect the historical market rather than today’s. MLS historical archives, public records, and tax records support the retrospective work. Recent renovations or property changes made after the date of death are excluded — we appraise the property as it existed on the historical date.
Alternate Valuation Date (Six Months After Death)
Under IRC Section 2032, estates can elect to value real property as of an alternate date six months after death rather than the date of death itself, when doing so reduces the total estate tax liability. We can prepare appraisals at either date, or both, depending on which serves the estate. Coordinate with the estate’s CPA or attorney to confirm which valuation date applies before ordering.
Credentials That Matter to the IRS
For real estate transferred at death, the IRS requires what it terms a “qualified appraisal” prepared by a “qualified appraiser” under IRC Section 170(f)(11) and related regulations. Qualifying credentials include state certification, professional designations (ASA, SRA, MAI), regular appraisal practice, and demonstrated competence with the property type. Glenn is a California Certified Residential Appraiser and Accredited Senior Appraiser (ASA) with 25 years of active practice and over 10,000 appraisals completed across all property types in Los Angeles County.
Step-Up Basis — Why Getting This Right Matters for Heirs
Heirs who inherit real property receive a step-up in basis to fair market value as of the date of death. That stepped-up basis becomes the starting point for any future capital gains calculation when the property is eventually sold. An accurate, defensible date of death appraisal can save heirs substantial capital gains tax when they later sell — particularly in appreciating LA County markets where values have risen significantly between the date of death and any future sale.
Why Choose Home Point Appraisal?
With over 25+ years of experience in the SoCal real estate industry, we have expertise and knowledge of your local market. Call us for fast response or click the button below to get an instant quote.
Frequently Asked Questions — Date of Death Appraisal
What is a date-of-death appraisal and why is it needed?
A date-of-death appraisal is a retrospective valuation that establishes a property’s fair market value as of the date a property owner passed away. It’s needed for IRS estate tax filings (Form 706), step-up in cost basis for heirs (reducing future capital gains tax), probate court inventory, and trust administration. Without one, heirs may pay significantly more capital gains tax when the property eventually sells.
How is value determined as of a past date when current market data exists?
We analyze comparable sales that closed at or before the date of death — typically within 3–6 months prior, sometimes extending further depending on market activity. Adjustments are made for any property changes since that date. Market conditions, sale prices, and economic factors are evaluated as they existed at the date of death, not today. This is standard retrospective appraisal methodology and is supported by USPAP.
Will the IRS audit a date-of-death appraisal, and how do you protect against that?
The IRS may audit estate tax filings, especially when property values are substantial. Protection against audit challenges comes from a properly documented, USPAP-compliant appraisal that clearly shows: the comparable sales used, the adjustments applied, the market conditions analyzed, and the appraiser’s reasoning. Our reports are structured to meet IRS scrutiny by default, with the level of detail that supports the value if challenged.
What’s the difference between a date-of-death appraisal and a probate appraisal?
They’re often the same thing — but not always. A “probate appraisal” generally refers to the appraisal required for the probate court inventory, which uses the date of death as the valuation date. A “date-of-death appraisal” specifically describes the valuation date and is used for both probate AND IRS step-up purposes (even when probate isn’t required, such as with property held in a living trust). One appraisal typically serves both needs.
How far back can you do a retrospective valuation?
We can perform retrospective valuations going back decades when needed, though most date-of-death appraisals are within the last 1–5 years. The further back the date, the more research is required to reconstruct accurate market conditions. The IRS generally requires the appraisal to be performed within a reasonable time after the date of death (typically aligned with the estate tax filing deadline, which is 9 months after death), but later appraisals are accepted when justified.
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