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Date of Death Appraisal
A date of death appraisal values a property as of the day its owner died, even if the appraisal is ordered months or years later. It is the standard tool for establishing the stepped-up tax basis of inherited real estate, and estate attorneys and CPAs request them constantly.
Why the date of death matters
Federal tax law generally resets the cost basis of inherited property to its fair market value on the owner's date of death (IRC §1014). That number determines the capital-gains tax heirs pay when they sell:
- Parent bought the house in 1987 for $95,000.
- House was worth $410,000 the day the parent died.
- Heir sells it a year later for $425,000.
With a documented date-of-death value of $410,000, the taxable gain is roughly $15,000, not $330,000. Without documentation, heirs may struggle to support the higher basis if the IRS asks. The appraisal usually costs a few hundred dollars; the tax difference can be tens of thousands.
The alternate valuation date
For estates that owe federal estate tax, the executor can elect to value assets as of six months after the date of death instead (assets sold or distributed within those six months are valued at their disposition date), but only when the election lowers both the gross estate value and the estate tax due (IRC §2032). If your attorney raises this, the same appraiser can typically provide both effective dates.
How a retrospective appraisal works
The appraiser inspects the property today, then researches comparable sales, market conditions, and the property's condition as of the effective date in the past. Retrospective assignments are a recognized practice under USPAP, the national appraisal standards, which address them directly in Advisory Opinion 34. Expect the appraiser to ask what, if anything, changed about the property since the death (renovations, damage, additions), since the valuation must reflect its condition on that date.
What it costs
Consumer-direct single-family appraisals often land in the $300–$600 range, varying by region and property; appraisers often charge more for older effective dates because the sales research is heavier. Multi-property estates can usually negotiate a package.
Frequently asked questions
The house already sold. Can I still get a date of death appraisal?
Often yes. If the appraiser can adequately research the property and market as of the effective date, a sale after death does not prevent the assignment; the sale price itself may also be relevant evidence.
Is a tax assessment or Zillow estimate enough for basis?
They are weak evidence. Assessments often lag the market and automated estimates are not appraisals. A USPAP-compliant report from a licensed appraiser is the documentation estate professionals rely on.
Who should order it: the heir or the estate?
Either can. Commonly the executor or trustee orders it during settlement; an heir who inherited directly can order one for their own basis records.
How soon after a death should we order?
Sooner is easier (fresher data, current condition closer to date-of-death condition), but retrospective appraisals years later are routine.
Find an appraiser for a date of death assignment. Browse appraisers by state. Related: Estate appraisal.