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Answer to "What is a Date of Death Appraisal?"
Date of Death Appraisal is also called a Retrospective Appraisal. The Date of Death in a home appraisal is a significant reference point used to evaluate the property's worth at the time of the owner's passing. This valuation is essential for legal and financial purposes related to estate settlement and inheritance, ensuring a fair and accurate representation of the property's value in the given context. In the context of a home appraisal, the term "Date of Death" typically refers to the date on which the property owner passed away. This valuation helps in assessing any potential estate taxes or inheritance issues. |
Answer to: "Does the IRS require a Home Appraisal? "
When an individual inherits property, the IRS generally values the property based on its fair market value at the time of the decedent's death. This is known as the stepped-up basis, and it helps determine the capital gains tax if the property is eventually sold. The fair market value is determined using methods such as a real estate appraisal or an evaluation of comparable properties in the area. It's important for individuals dealing with inherited property to keep detailed records and documentation (real estate appraisal) to support the reported value and be prepared to provide additional information if requested by the IRS.
Our approach is rooted in understanding of the subject's market and history at the time of death. Each inherited property is distinctive and requires an experienced appraiser. Let us help you unravel the past with a comprehensive retrospective appraisal for your estate. Your estate appraisal report will help you make well-informed decisions.
Our approach is rooted in understanding of the subject's market and history at the time of death. Each inherited property is distinctive and requires an experienced appraiser. Let us help you unravel the past with a comprehensive retrospective appraisal for your estate. Your estate appraisal report will help you make well-informed decisions.
A professional estate appraisal will be performed by a Licensed Residential Real Estate Appraiser to determine the fair market value. The date of death is usually different than the date that the appraisal is ordered, an historical appraisal (also called a retrospective appraisal) is the type of appraisal that can provide the value as of the date of the event in question – in this case, the date of death of the property owner
The IRS require a California State Licensed Appraiser
Our Home Appraisers are licensed by the state of California.
Our appraisers have over 25 years of experience for homes throughout the Central Valley.
We use local Fresno MLS, Central Valley MLS, Realist, Corelogic and County Records , when developing our opinion of fair market value.
What is a Retrospective Appraisal?
The value of a property on a specific previous historical date.
Definition
Retrospective Value is generally defined as:
A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.
Source:Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago:Appraisal Institute, 2020).
Definition
Retrospective Value is generally defined as:
A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.
Source:Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago:Appraisal Institute, 2020).
What happens if I live out of town?
We understand your situation and will work with you in appraising your home. We will contact your tenants, property manager, realtor and/or representative to inspect the property. With today's technology we keep you in the loop. You will be updated with appointment times, dates and progress. Your completed report will be emailed to you.
Example:
An estate executor called last week, his father had recently passed away leaving a single family home to his sons. The executor and his bother both lived out of state and needed a fair market value appraisal to settle the estate.
Our client emailed us the contact information for his tenants, along with a detailed list of improvements. We contacted the tenants, set the appointment, inspected the property, and completed a "date of death" for the fair market value. The estate appraisal report was emailed as a PDF file for his records.
Example:
An estate executor called last week, his father had recently passed away leaving a single family home to his sons. The executor and his bother both lived out of state and needed a fair market value appraisal to settle the estate.
Our client emailed us the contact information for his tenants, along with a detailed list of improvements. We contacted the tenants, set the appointment, inspected the property, and completed a "date of death" for the fair market value. The estate appraisal report was emailed as a PDF file for his records.
House Appraisals After the Death of a Spouse or Parent
Things can get complicated during estate settlements. Siblings can disagree on values, settlements, taxes, selling etc. Our experience appraisers specialize in independent appraisals we are not bank appraisers.
What is a "Form 706"
While its daunting title "United States Estate (and Generation-Skipping Transfer) Tax Return may service to overwhelm even the most seasoned professional all on its own, Form 706 schedules further serve to confuse and overwhelm. The PDF form will help you to put assets, liabilities, trust holdings, and community property allocation where they belong and will provide sample entries to mitigate and possible eliminate IRS scrutiny of the completed return.
Current Form 706 to Download
Through the years we have assembled a wide range of information on estate settlements. For your convenience we have added a page of articles and guides to assist you in your settlements. You can find the page here.
Current Form 706 to Download
Through the years we have assembled a wide range of information on estate settlements. For your convenience we have added a page of articles and guides to assist you in your settlements. You can find the page here.
How a Home Appraisal can be used?
EQUITABLE DISTRIBUTION:
To divide up items from the estate equally among the heirs. This may require an appraisal of the total contents or a specific list of items, depending on the needs of the estate and the heirs.
ESTABLISH A BASE:
Valuing assets or a collection at a specific point in time can provide a benchmark so that the basis can be stepped up to the current value as of the date of death. It can provide a comparison at a later time to illustrate growth or decline in value.
PROBATE:
The probate court will require an inventory and appraisal of the estate assets.
TRUST INVENTORY:
In California, the majority of estates are part of an established trust. An inventory and appraisal establishes the value of the property at the time it became subject to the trust.
ESTATE PLANNING:
Planning for the future of an estate or collection is also important. An appraisal can provide a valuable tool so that owners can plan in advance for tax, distribution or donation. It can provide peace of mind for collectors to know how their treasured objects will be handled after they are gone.
ESTATE TAX:
Required by the Internal Revenue Service and many states. If the total estate is over a certain value threshold (currently at $5 million), then everything needs to be appraised and valued as of the date of death (or alternate date).
Retrospective / Date of Death appraisals take more time and research than a typical appraisal. Contact us for a "Estate Appraisal Report" quote or if you have any questions
Determining Fair Market Value
Inherited Property - Taxes can be a substantial part of the cost of settling an estate, it is critical to establish a Fair Market Value that is supported by the market condition.
The Fair Market Value as of the date of death, will be substantiated with a detailed report (i.e. the estate appraisal) that provides the real market data and analysis that I used.
Fresno Appraisal Service understands your special estate requirements. Whether you need an appraisal for estate values, probate purposes, or asset update purposes, you need to know you are in good hands.
If you need to speak with an appraiser or have questions about property values we are just a phone call away.
To divide up items from the estate equally among the heirs. This may require an appraisal of the total contents or a specific list of items, depending on the needs of the estate and the heirs.
ESTABLISH A BASE:
Valuing assets or a collection at a specific point in time can provide a benchmark so that the basis can be stepped up to the current value as of the date of death. It can provide a comparison at a later time to illustrate growth or decline in value.
PROBATE:
The probate court will require an inventory and appraisal of the estate assets.
TRUST INVENTORY:
In California, the majority of estates are part of an established trust. An inventory and appraisal establishes the value of the property at the time it became subject to the trust.
ESTATE PLANNING:
Planning for the future of an estate or collection is also important. An appraisal can provide a valuable tool so that owners can plan in advance for tax, distribution or donation. It can provide peace of mind for collectors to know how their treasured objects will be handled after they are gone.
ESTATE TAX:
Required by the Internal Revenue Service and many states. If the total estate is over a certain value threshold (currently at $5 million), then everything needs to be appraised and valued as of the date of death (or alternate date).
Retrospective / Date of Death appraisals take more time and research than a typical appraisal. Contact us for a "Estate Appraisal Report" quote or if you have any questions
Determining Fair Market Value
Inherited Property - Taxes can be a substantial part of the cost of settling an estate, it is critical to establish a Fair Market Value that is supported by the market condition.
The Fair Market Value as of the date of death, will be substantiated with a detailed report (i.e. the estate appraisal) that provides the real market data and analysis that I used.
Fresno Appraisal Service understands your special estate requirements. Whether you need an appraisal for estate values, probate purposes, or asset update purposes, you need to know you are in good hands.
If you need to speak with an appraiser or have questions about property values we are just a phone call away.
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Reach out to an appraiser:
#559-761-2370 
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7 Steps to Get Your Appraisal
- Step 1Contact us with information about the type of appraisal you require and get a fee quote. You can start this process using our by emailing your property's address and the reason for your valuation. i.e.- settlement, date of death, divorce, bankruptcy , other , or call our office at 559-761-2370. Be sure to tell us your preferred contact method. Email, Text, Phone
- Step 2 An appraiser will review your request. Your appraiser will contact you. You are no obligation to order or pay for an appraisal. Consultations are free and your appraiser will answer all your questions.
- Step 3 Schedule the inspection. Your appraiser will need interior access to the property (unless it is a land only appraisal).
- Step 4 Your appraiser will do background research on your property to prepare for the appraisal inspection.
- Step 5 Inspection: Your appraiser will inspect the property, make notes and take photos. (Payment is usually made at this time)
- Step 6 Your appraiser will finish the appraisal report. This is typically less than one week.
- Step 7 Your complete appraisal will be sent to you, the client.
IRS Publication - Real Estate Appraisal - Valuation of Real Property
The estate tax appraiser must have experience with IRS Real Property Valuation Guidelines. Treasury Regulation Section 20.2031-1(b) requires the residential appraiser to follow the valuation guidelines when preparing a real estate appraisal for tax purposes or retrospective date of death valuations. In addition, the real estate appraiser should be licensed and qualified under IRS tax regulations Section 1.170A-17(a).
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Independent Fee Appraisers
Single Family Homes / Investment Property Appraisal / Duplexes / PMI / Multi Family / Condos and Town House / Refinance Appraisal / Lake Property Appraiser / / Divorce Appraisal / Estate Appraisal / Take me to Home Page |
Coverage Area
Fresno / Clovis / Fowler Madera /Fig Garden / Bullard / Reedley / Selma / Selma / Woodward Park / River Park / Tower District / Sanger / 559-761-2370
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