Date of Death Appraisals

Losing a family member is hard enough without a stack of paperwork attached to it. If real estate is part of the estate, though, someone is eventually going to ask what the property was worth on the day of death — and a guess will not satisfy the IRS, the probate court, or the other heirs.

That number is called a date of death valuation, and it is a specific kind of appraisal. Rather than telling you what the home is worth today, it looks backward to the market as it existed on the date the owner passed away, using sales from that period. It is a different exercise than a standard appraisal and it needs to be documented accordingly.

Why You Probably Need One

• Step-up in basis. When property passes to an heir, its cost basis generally resets to the fair market value as of the date of death. Establish that value properly and the heirs may owe far less in capital gains tax when the property is eventually sold. Skip it, and you are relying on an estimate you cannot defend years later.
• Estate and probate filing. Indiana probate courts and federal estate filings expect a supportable value for real property, not a county assessment or an online estimate.
• Dividing the estate fairly. When one heir wants to keep the house and the others want to be paid out, an independent number keeps a hard conversation from becoming a permanent rift.
• Selling the property. Executors have a duty to the estate. A documented appraisal shows the sale price was reasonable.

What the Process Looks Like

1. A short conversation. Tell us the date of death, the property address, and who needs the report — an attorney, an accountant, the court, or the family. That determines how the report is written.
2. Inspection. Usually an interior and exterior walkthrough with measurements and photographs. If access is limited, we discuss alternatives up front.
3. Research. We pull comparable sales from the neighborhood around the effective date and adjust for differences in size, condition, and features.
4. Delivery. A complete written report, delivered electronically, with the reasoning laid out clearly enough that a non-appraiser can follow it.

Working With Your Attorney or CPA

Much of this work comes by way of estate attorneys and accountants across Central Indiana, and we are comfortable coordinating directly with them so you do not have to relay messages. If your attorney needs the report in a particular format or by a particular deadline, tell us early and we will build the schedule around it.

And if you are not sure whether you need an appraisal at all — call anyway. Sorting that out costs you nothing.