Date of Death Appraisal
I recently helped client after her husband passed away and needed to explain the date of death appraisal to her. As always, consult your estate attorney and tax attorney, but here are the key points for why you need to get a Date of Death Appraisal.
When a loved one passes away, it is often a difficult time for family members and friends. While dealing with the emotional trauma of loss, it can be overwhelming to navigate the legal and financial aspects of settling their estate. One important step in this process is obtaining a date of death appraisal.
A date of death appraisal is an appraisal of the value of assets at the time of a person's death. This appraisal is important for several reasons. First, it is necessary for determining the value of the estate for tax purposes. In the United States, the federal government imposes an estate tax on estates that exceed a certain value. The value of the estate is determined by the fair market value of the assets at the time of the decedent's death. Without a date of death appraisal, it is difficult to accurately determine the value of the estate and the amount of estate tax that is owed.
Second, a date of death appraisal can help prevent disputes between heirs. When a person passes away, their assets are typically distributed to their heirs according to their will or state law. However, disputes can arise if there is disagreement about the value of the assets. For example, if one heir believes that a particular piece of property is worth more than the others do, it can cause tension and potentially lead to legal action. A date of death appraisal can help resolve these disputes by providing an objective value for the assets.
Finally, a date of death appraisal is important for determining the basis of inherited assets. When an heir inherits an asset, such as a house or a stock portfolio, the basis of that asset is the fair market value at the time of the decedent's death. This basis is important for calculating the capital gains tax when the asset is eventually sold. Without a date of death appraisal, it is difficult to accurately determine the basis of the asset and the amount of capital gains tax that will be owed.
A date of death appraisal is an important step in settling an estate. It helps determine the value of the estate for tax purposes, prevents disputes between heirs, and determines the basis of inherited assets. While it may be a difficult and emotional process, obtaining a date of death appraisal is necessary to ensure that the estate is settled fairly and accurately.
If you need recommendations for an appraiser or tax attorney reach out today. I am happy to assist you.
Blake Russell, Realtor and Olympian
Sotheby's International Realty | DRE 02188622
[email protected] | 831.917.9886