When someone passes, the real estate they owned must be valued accurately, often as of a historical date. H.M. Hoffman & Company provides professional estate appraisal services throughout the Philadelphia region, including Montgomery, Delaware, Bucks, and Chester Counties. These valuations assist executors, estate attorneys, CPAs, and families with estate settlement, probate, federal estate tax reporting, Pennsylvania inheritance tax matters, and determining stepped-up tax basis.
A date-of-death appraisal establishes an opinion of market value as of the date of death rather than the current date. The property is inspected in its present condition, while the analysis considers its condition and relevant market conditions as of the retrospective effective date. The resulting appraisal report provides a documented, well-supported opinion of market value for the intended estate-related purpose.
For the federal estate tax return (Form 706)
When the estate’s value is high enough to require a 706 filing, the IRS requires defensible real estate values as of the date of death.
For step-up in basis
When heirs inherit property, their cost basis ‘steps up’ to the date-of-death value. A documented appraisal protects them from a much larger capital gains bill if and when they sell.
For PA inheritance tax + probate
PA inheritance tax filings require accurate property values. Probate court may also require an appraisal to confirm fair distribution among heirs.
How It Works
Our Estate Appraisal Process
I work directly with executors, estate attorneys, or the family CPA. I confirm the property, the date of death (the valuation date), and who the report’s intended users are.
Standard interior and exterior inspection at current condition. Even though the value is retrospective, the inspection still happens — I need to see the property. If it’s been substantially altered since the date of death, we discuss that and document it.
I research comparable sales as of the date of death — not today’s market. This is the part that distinguishes a date-of-death appraisal from a regular one: comparables, market conditions, and adjustments are all calibrated to the historical date.
Prepared to USPAP standards, in the format the IRS, the PA Department of Revenue, and CPAs expect. Delivered as PDF, ready to attach to the relevant returns.
Why a Professional Estate Appraisal Matters
An independent, well-supported estate appraisal provides a documented opinion of market value for estate settlement, tax reporting, and inheritance-related matters. Unlike an informal estimate, a professional appraisal includes market research, comparable sales analysis, and supporting documentation. This information can be valuable when an estate valuation is reviewed or questioned by tax authorities or other interested parties.
Pennsylvania Counties Served for Estate Work
- Montgomery County
- Delaware County
- Philadelphia County
- Chester County (Select areas)
- Bucks County (Select areas)
FAQ
Common questions about estate appraisals.
A date-of-death appraisal is a retrospective real estate appraisal that establishes an opinion of a property’s market value as of the owner’s date of death. These appraisals are commonly used for estate settlement, probate, federal estate tax reporting, Pennsylvania inheritance tax matters, and determining the tax basis of inherited real estate. The appraisal considers relevant property characteristics and market conditions as of the historical valuation date.
Sooner is better, but not for the reason you’d think. The valuation date is locked — it’s the date of death, no matter when the inspection happens. The reason to do it promptly is documentation: properties get sold, renovated, or change condition, and the cleaner the record while it’s fresh, the better. Most estate attorneys want it done within the first few months.
Because the county’s assessed value is almost never the same as fair market value — and the IRS and PA Department of Revenue require fair market value, not assessed value, for estate purposes. Using the assessment can shortchange the step-up in basis or expose the estate to challenge.
When heirs inherit property, their cost basis becomes the property’s fair market value as of the date of death — not what the deceased originally paid. If the heirs later sell, capital gains are calculated against that stepped-up basis. A lower or undocumented date-of-death value means a bigger capital gains bill at sale. A defensible appraisal protects that step-up.
USPAP-compliant appraisals prepared by certified appraisers are the standard the IRS expects for real property in estates. The report will document the valuation date, the methodology, the comparables, and the adjustments — everything an IRS reviewer would ask for if the return is examined.
Yes. Trust-owned property follows the same valuation logic — the report identifies the trust as the owner and the trustee as the engaging party (or the trustee’s attorney). The methodology is the same.
I can appraise each. Most estate engagements involve one or two properties, but larger estates with multiple holdings are common. Each property gets its own report, all keyed to the same date of death.
Related Services
Divorce Appraisals
When retrospective valuation overlaps with marital property questions.
Settling an estate?
Tell me the property and the date of death. Flat fee quoted within one business day.