Date of death valuations (Retrospective Appraisals)
Estate appraisals are commonly ordered by the executor of an estate to determine tax liability and dispose of real property under a will or in probate. There are many situations — none of them lacking stress and complexity — where you might need an appraisal of property that states an opinion of what the property was worth on a date some time ago, rather than when the appraisal is ordered. For estate tax purposes or disposition of the assets of a decedent, a “date of death” valuation is often required. (Sometimes, the executor of the estate may choose to have the date be six months after the date of death — but the same principles apply.)
Attorneys, accountants, executors and others rely on Maryland Appraisal, LLC for “date of death” valuations because such appraisals require special expertise and training. They require a firm that’s been in the area for some time and can effectively research comparable contemporaneous sales.
Real property isn’t like publicly traded stock or other items which don’t fluctuate in value very much or for which historical public data is available. You need a Maryland Certified Real Estate Appraiser, bound by the Uniform Standards of Professional Appraisal Practice (USPAP) for a high degree of confidentiality and professionalism, and you need the kind of quality report and work product taxing authorities and courts need and expect.
Establishing Basis for Estate Planning Purposes
As Maryland Certified Residential Appraisers, we are often called upon to prepare a date of death appraisal for an estate or trust to establish the “basis” for estate tax liability or trust purposes. If the property was acquired from a decedent the basis is typically the fair market value on the date of the decedent’s death (I.R.C. § 1014). An alternative valuation date may be chosen by the executor that is six months after the date of death, and typically, only if a tax savings can be shown by your tax preparer, accountant or real estate attorney.
We have certified residential appraisers with experience in all types of residential property and provide appraisal services in Maryland and Washington DC. To talk to an appraiser or to schedule an appraisal appointment call 443-765-5422, you can be assured of our fullest degree of discretion.