Estate Appraisal

Estate appraisals, handled with care

Handling estate settlements and date-of-death appraisals is often a complex and sensitive responsibility for executors and trustees. KO Appraisal specializes in delivering accurate and dependable appraisals to support you through this process.

Date-of-death appraisals play a critical role in tax matters, helping determine the necessity and amount of a federal estate tax return. These valuations are vital for both estate settlement and tax considerations.

• Complying with United States Treasury Department standards
• Adhering to State of California law
• Meeting IRS requirements
• Maintaining the Uniform Standards of Professional Appraisal Practice (USPAP)

Trusted expertise

Executors, lawyers, CPAs, and tax professionals rely on our meticulous, ethical appraisals. A thorough understanding of the estate valuation process ensures adherence to all pertinent standards and regulations.

For the best outcomes, date-of-death appraisals should be conducted promptly. Every situation is unique, so we also offer retrospective appraisals for those who cannot address these matters immediately.

A compassionate, professional approach

Estate and trust work usually arrives at a difficult moment for a family. I handle these assignments with that in mind, and without letting it affect the independence of the conclusion.

Estate and trust appraisals must comply with USPAP and be conducted by a state-certified appraiser. The work is performed by Kevin O'Brien, a California Certified General Real Estate Appraiser, License #3005065.

Who orders this appraisal

• Executors
• Administrators
• Estate attorneys
• CPAs
• Heirs

The rules that govern it

IRC §1014, stepped-up basis, Property inherited from a decedent takes a new income tax basis equal to its fair market value at the date of death. That reset is usually worth far more to the heirs than the estate tax itself, but it only holds up if the date-of-death value can be proven, which for real property means a qualified appraisal with that effective date.

IRC §2032, alternate valuation date, An executor may elect to value the estate six months after death instead. The election is available only if it does BOTH: reduces the gross estate AND reduces the estate tax due. It cannot be elected simply because the later number is more convenient. Where it is in play, two appraisals are often needed, one at each date.

Form 706, federal estate tax return, Due nine months after the date of death, with a six-month extension available on Form 4768. The filing threshold is indexed for inflation and changes every year, so confirm the current figure with the estate’s CPA or attorney rather than relying on a number published on any website, including this one.

California. No state estate or inheritance tax, California imposes neither an estate tax nor an inheritance tax. Federal rules may still apply, and the basis step-up under §1014 matters regardless of whether any estate tax is owed, which is why date-of-death appraisals are routinely needed for estates far below the federal filing threshold.

USPAP, retrospective effective date, An appraisal with a past effective date is a retrospective assignment. Value is developed from data available as of that date, and the report must disclose the effective date and the extent to which later information was considered.

How it works

1. Fix the effective date: the date of death, or the §2032 alternate date if the executor elects it.
2. Inspect the property, or document the extent of any limitation where access is no longer possible or the property has since been altered or sold.
3. Select comparable sales that had closed as of the effective date, disregarding what the market did afterward.
4. Report in USPAP-compliant form, addressed to the executor, trustee, or attorney who will rely on it.
5. Remain available to support the value if the return is examined.

What you receive

USPAP-compliant retrospective appraisal report with a date-of-death effective date. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.

Common questions