When someone passes, the real estate they owned has to be valued — accurately, retrospectively, and in a format the IRS and the PA Department of Revenue will accept. The number affects the federal estate tax return, the PA inheritance tax return, the heirs’ future capital gains basis, and how the estate is divided. It’s not a place to guess.
I prepare date-of-death appraisals for executors, estate attorneys, and CPAs. The valuation date is the date of death — not today. The inspection happens at current condition; the analysis reconstructs the market as of that historical date. The report is built to be filed.
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
From engagement to filed report.
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.
The IRS Doesn’t Accept ‘Best Guess.’
A back-of-the-envelope estimate or a real estate agent’s letter doesn’t satisfy IRS or PA Department of Revenue requirements. If the estate is later audited — or if heirs sell years later and the basis is questioned — the documented USPAP-compliant appraisal is what the family will need. It’s cheap insurance for a number that may have to defend itself a decade from now.
Pennsylvania Counties Served for Estate Work
- Montgomery County
- Delaware County
- Philadelphia County
- Chester County (parts within 25 miles of Narberth)
FAQ
Common questions about estate appraisals.
It’s a retrospective appraisal where the valuation date is the date the property owner passed away. The report establishes what the property was worth on that specific date — which is the value used for federal estate tax (Form 706), PA inheritance tax, and the heirs’ stepped-up cost basis.
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.