Estate & Date of Death Appraisals

Settling an estate or forming a trust can both be difficult tasks. Determining the value of a property associated with an estate or trust is an important part of the process. The value needed in an estate appraisal, probate appraisal, or trust appraisal may be the property’s current market value or the property’s (retrospective) value as of a specific prior date (date of death, etc.) An estate or date of death appraisal is typically used to set the tax basis for the property.

In our experience, Property Tax Appeal Appraiser knows that people need estate and date of death appraisals for a variety of reasons. We also understand the unique process of determining and planning an estate as well as the need to have accurate information to help maintain fairness to all parties involved.

Determining the Proper Valuation — Date of Death Appraisals

It is important that a proper valuation of the successor’s assets like real estate, real property, etc. is performed after an individual’s passing. It is the date of death appraisal that determines the fair market value of real estate that the person leaves behind.

According to the IRS, fair market value is defined as the following:

The price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent’s gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate.

(Regulation 20.2031-1.)

The date of death valuation is a component of valuation of assets at death by an estate appraiser. This estate appraisal exercise comes in handy when it comes to determining the tax liability to the IRS. The estate appraisal is also used in determining the basis on which the new income tax will be calculated for the descendant to whom the property flows after an individual’s death.

Conducting a valuation of such property is often a complex process. That is why the services of an experienced, qualified, and certified appraisal expert are vital to determining retrospective fair market value. For example, in case a probate hearing is required or the real estate has to be divided among heirs at the decedent’s wishes, a professional appraiser will help navigate the process.

As a matter of fact, many real estate attorneys who handle such cases prefer that only an experienced, state-certified appraiser assess the valuation of such real estate. Relying on a valuation report by non-certified professional can prove to be risky.

Property Tax Appeal Appraiser proves to be Atlanta’s top provider of estate and date of death appraisals. We provide a level of service and communication that is personal and unmatched with over two decades of experience in the Atlanta area. Call us today for your free consultation.