Losing someone you love is never easy. The grief is heavy enough without having to deal with paperwork, taxes, and legal requirements. But here is the reality. When someone passes away and leaves behind real estate, there are rules to follow. One of those rules is getting a date of death appraisal. S. Keenan, INC. handles these all the time, and we know exactly why they are so important.
Let us walk through five key reasons an estate might need this type of appraisal. Trust us, it matters more than you think.
1. You Have to File Estate Taxes with the IRS
This is the biggest reason. When someone dies, the IRS wants to know what everything was worth on that specific day. That includes the house, the land, and any other real estate they owned.
The federal estate tax kicks in for larger estates. Even if your estate is under the federal threshold, your state might have its own rules. S. Keenan, INC. sees this all the time. The IRS does not accept guesses. They do not accept what you think the house might be worth. They want a professional appraisal done by someone who knows what they are doing.
Here is the thing. If you get the value wrong, the IRS can come back and audit you. That means penalties, interest, and a whole lot of headaches you do not need. A proper date of death appraisal from S. Keenan, INC. protects you from all of that.
2. You Need to Establish the Cost Basis for Capital Gains
This one trips people up all the time. Here is how it works. When you inherit a house, the tax law gives you something called a stepped-up basis. That means your cost basis becomes the value of the property on the date the person died, not what they originally paid for it.
Why does this matter? Because when you sell the house later, you only pay capital gains tax on the increase from that date of death value. Not the increase from what your loved one paid decades ago. That is a huge difference.
Let us give you an example. Your loved one bought the house for fifty thousand dollars back in 1980. On the date they passed away, it is worth three hundred thousand dollars. You inherit it and sell it later for three hundred twenty thousand. You only pay tax on the twenty thousand dollar increase, not the two hundred seventy thousand dollars of total gain. That saves you a massive amount of money.
S. Keenan, INC. makes sure that date of death value is accurate. If you get it wrong, you could end up paying way more in taxes than you should. Nobody wants that.
3. You Are Selling the Property
If you plan to sell the inherited house, you absolutely need the date of death appraisal. It sets that cost basis we just talked about. Without it, you have no official number to work with.
Plus, when you go to sell, buyers and their lenders will want to know the property is worth what they are paying. Having the date of death appraisal handy gives you a professional value you can reference. It makes the whole transaction smoother.
S. Keenan, INC. provides appraisals that stand up to scrutiny. Lenders accept them. Buyers trust them. You have peace of mind knowing the number is right.
4. You Are Dividing Assets Among Heirs
Money and family can be a tricky combination. When multiple heirs are involved, you need a fair way to divide things up. Sometimes one heir wants the house and the others want cash. Sometimes you have to sell the property and split the proceeds.
In all these situations, you need an unbiased, professional value that everyone can agree on. An appraisal gives you that. It takes the emotion out of the equation. It gives everyone a number they can trust.
S. Keenan, INC. provides that independent third-party opinion. We are not on anyone’s side. We just give you the facts. That makes the whole process much less stressful for everyone involved.
5. There Is a Legal Dispute or Challenge
Sometimes families disagree. Sometimes there are legal challenges to the will or the estate plan. When that happens, the courts get involved. And the courts want evidence.
A professional date of death appraisal becomes that evidence. It is a documented, professional opinion of value that holds up in court. S. Keenan, INC. provides thorough, well-documented reports that stand up to legal scrutiny.
Whether it is a probate dispute, a divorce, or any other legal matter, having that appraisal gives you solid ground to stand on. It protects you and it protects the estate.
What If the Person Died a Long Time Ago?
This happens more than you might think. Sometimes estates take years to settle. Sometimes people just do not get around to it. S. Keenan, INC. can go back as far as needed. It takes more research, but we have the resources to do it right. We dig into historical data, find sales from that time period, and reconstruct what the market was doing.
If the property is held in a trust, you might still need a date of death appraisal for the stepped-up basis. S. Keenan, INC. handles these all the time. Give us a call and we will walk you through exactly what you need.
Frequently Asked Questions
What exactly is a date of death appraisal?
It determines what a property was worth on the exact day the owner passed away. That number becomes the official value for tax and legal purposes.
Who pays for the date of death appraisal?
The estate pays for it. It’s considered an estate expense, just like legal fees or funeral costs. It comes out of the estate funds before anything gets distributed to the heirs.
Can the executor order the appraisal?
Absolutely. The executor or personal representative of the estate typically orders it. They’re responsible for handling all estate matters, including property valuation.
How far back can a date of death appraisal go?
We can go back as far as needed. The research gets tougher the further back you go, but we’ve got access to historical data and can handle appraisals for dates going back many years.
What if the property has been renovated since the date of death?
We value the property as it was on the date of death. Any renovations done after that date don’t affect the date of death value for estate purposes. They might matter when you sell later, but not for the estate valuation.
Is a date of death appraisal the same as a regular appraisal?
They’re similar but not the same. A regular appraisal looks at current value. A date of death appraisal looks at historical value. The research is different, and the report has to meet specific IRS requirements.
Do I need an appraisal if I’m keeping the property?
Yes, you still need it for tax purposes. Even if you plan to live in the house, you need to establish the cost basis for future tax calculations when you eventually sell.
What happens if the IRS disagrees with the appraisal?
If the IRS questions the value, you need a strong, well-documented appraisal to defend it. That’s why you hire a qualified appraiser with local knowledge. We provide thorough reports that hold up under IRS scrutiny.
Can one appraisal cover multiple properties?
Yes. If the deceased owned multiple properties, you can have them all appraised. Each property gets its own value as of the date of death. We can handle them all in one engagement.
How long does a date of death appraisal take?
Depends on how far back the date is and how much research is needed. Usually about one to two weeks. For older dates, it might take a bit longer. We work efficiently to get you the report you need
