Appraisal for Estate Taxes: Loved One Passed Away

Appraisals are needed for a number of reasons but getting one done after an owner (often an elder) has passed away is most common. Typically, the descendent who was assigned to be the Trustee engages an appraiser. In these situations, an appraiser is called in to conduct a fair market value based upon the exact date said person passed away. Some families hire attorneys to help facilitate these proceedings and others make way without one. This depends on a family's budget and comfortability level.

These appraisals are termed, A Retrospective Date of Death Value and used for a Step Up-In Basis. These appraisals are needed to determine how much the deceased persons asset was worth at time of death. Subsequently, when the family decides to sell the property, they will be required to pay an inheritance tax based upon the difference it was worth at time of passing and sell price.

If the owner had no will in place, a property might succumb to probate which is a court proceeding. This is a different topic which will be discussed later.

If you're looking to hire an appraiser to appraise your deceased loved one's real estate (home), there are positive elements: the fees are typically less expensive compared to Fannie Mae lender appraisals, and requirements are fewer resulting in quicker completion timeframes.

Families are often concerned about the cleanliness of the home prior to an appraiser visiting. Our loved ones from older generations tend to be packrats, and that's okay! Appraisers aren't concerned about dust, dishes in the sink or scattered knickknacks amongst moving boxes. What appraisers are really honing-in on is the overall condition & quality of materials, views if any, overall location, and dwelling & lot size.

By:

EFK Appraisal Services, Inc