Estate & Probate Appraisal
IRS-Compliant Valuations for Estates, Trusts, and Probate Proceedings
When a loved one passes away, the estate settlement process requires an accurate determination of the fair market value of all real property as of the date of death. In San Diego County — where property values often represent the largest single asset in an estate — a certified appraisal is essential for IRS compliance, probate court filings, and establishing the stepped-up cost basis that heirs will rely on for future tax planning. Spry Home Appraisal provides thorough, IRS-compliant estate and probate appraisals that meet the strict definition of a "Qualified Appraisal" under IRC Section 170. We work directly with estate attorneys, CPAs, trustees, and executors throughout San Diego to ensure timely and accurate valuations.
Step-Up Basis and Date-of-Death Valuations
One of the most important reasons for an estate appraisal is establishing the stepped-up cost basis. When property is inherited, the IRS allows the cost basis to be "stepped up" to the fair market value at the date of death, which can significantly reduce capital gains taxes when the property is eventually sold. For example, a San Diego home purchased decades ago for $150,000 that is now worth $1.2 million would have its basis reset to $1.2 million for the heirs. Without a certified appraisal documenting this value, heirs risk overpaying on capital gains taxes. For properties requiring ongoing value tracking, consider our asset management appraisal services.
Probate Court and Trust Administration
San Diego probate courts require accurate property valuations as part of the estate administration process. Whether the property is held in a revocable living trust or passes through probate, our appraisals provide the documentation needed for court filings, distribution among beneficiaries, and IRS Form 706 estate tax returns. We also handle complex scenarios including properties with estate planning considerations, multiple parcels, and luxury estates in communities like La Jolla, Rancho Santa Fe, and Del Mar. Our reports are routinely accepted by the San Diego Superior Court probate division.
Frequently Asked Questions
What is a date-of-death appraisal and why is it required?
A date-of-death appraisal determines the fair market value of real property as of the date the owner passed away. The IRS requires this valuation to establish the stepped-up cost basis for inherited property, which directly impacts capital gains taxes when the heirs eventually sell. It is also required for filing IRS Form 706 (Estate Tax Return) when the estate exceeds the federal exemption threshold.
How long after death can a probate appraisal be completed?
A probate appraisal can be completed at any time after the owner's death. However, the appraiser will establish the value as of the date of death using historical comparable sales data, not current market conditions. It is best to order the appraisal as soon as possible to ensure accurate records, though we routinely complete retrospective valuations for deaths that occurred months or even years prior.
Does the IRS have specific requirements for estate appraisals?
Yes. The IRS requires that the appraisal meet the definition of a "Qualified Appraisal" performed by a "Qualified Appraiser" as defined in IRC Section 170. The report must be USPAP-compliant, include a detailed description of the property, use appropriate valuation methods, and be prepared by a state-licensed or certified appraiser. Our reports meet all IRS requirements.
What is the difference between a probate appraisal and a probate referee?
In California, a probate referee is appointed by the court to provide a preliminary value for estate assets. However, a certified appraisal by a licensed appraiser provides a more thorough, defensible valuation that includes a full interior inspection, detailed comparable analysis, and USPAP compliance. Many attorneys prefer a certified appraisal for accuracy, especially for high-value San Diego properties.
How much does an estate or probate appraisal cost in San Diego?
Estate and probate appraisals in San Diego typically range from $400 to $700 for a single-family residence. Properties with higher values, unique features, or multiple parcels may cost more. Date-of-death retrospective appraisals may carry a small additional fee for historical research. The cost is typically paid by the estate and is a deductible estate expense.