What Is a Date of Death Appraisal and Why Do Estates Need One?

When a loved one passes away and the estate includes real property, the property's value as of the date of death usually needs to be documented, and a date-of-death appraisal is the most reliable way to do it. Here is what you need to know.

What Is a Date of Death Appraisal?

A date of death appraisal is a retrospective appraisal that establishes the fair market value of real property as of the date the owner passed away — not today's value, but the value on that specific historical date.

This type of appraisal is commonly required for:

• Probate proceedings — to properly value and distribute estate assets

• Estate tax filings — for estates large enough to file a federal estate tax return (Florida has no state estate tax)

• Step-up in cost basis — to establish the new tax basis for heirs who may later sell the property

• Trust administration — when property held in a trust must be valued upon the grantor's death

Why the Date Matters

Real estate values change constantly. A property's value today may be noticeably higher or lower than it was two years ago. In Florida probate, the personal representative's inventory must list each asset's estimated fair market value as of the date of death, and for federal tax purposes heirs generally take a basis equal to fair market value at death. An appraisal from a certified appraiser experienced in retrospective valuation is the most reliable way to support that value.

Working with Attorneys and CPAs

At Mantis Valuation Advisors, we regularly work with estate attorneys, probate attorneys, and CPAs throughout Sarasota, Manatee, and Charlotte counties. Our reports are USPAP-compliant and prepared for use in probate, tax reporting, and trust administration. Contact us to discuss your needs.