Date of Death Real Estate Appraisals in California

When someone passes away, the property they owned generally receives a new cost basis equal to its fair market value as of the date of death — the "step-up in basis." Establishing that value correctly can save heirs a significant amount in capital-gains tax when the property is later sold, and the IRS expects it to be supported by a credible, retrospective appraisal.

A date-of-death appraisal is retrospective: it estimates value as of a specific past date, not today. We analyze the comparable sales that were actually available in the market as of the date of passing and document our reasoning so the report withstands review by the IRS, a CPA, or the probate court.

When you need one

• Establishing a step-up in basis to minimize future capital-gains tax
• Filing an estate tax return (Form 706) or supporting a trust
• Probate administration and equitable distribution among heirs
• Documenting basis years after the fact, when records are needed retroactively

What you receive

A USPAP-compliant written report stating the property's fair market value as of the date of death, the comparable sales relied upon, and a clear explanation of the analysis. Most clients choose the Basic Desktop or Desktop report; no interior inspection is required for a retrospective value, though we can perform one when the estate is also being divided.