Probate Appraisals: What Executors in the Tri-State Area Need to Know

Settling a loved one’s estate? Here’s how date-of-death appraisals work, why they matter, and how to make the process a little easier.

The kitchen in the old farmhouse near Yankton, SD still smelled faintly of cinnamon. The executor, a man I’ll call Tom, stood by the counter holding his mom’s recipe box. He’d found it that morning while clearing out the cupboards.

“Sorry,” he said. “I keep getting sidetracked.”

I told him to take all the time he needed. Probate appraisals happen during one of the hardest seasons in a family’s life, and nobody should feel rushed through it.

The Value Is Tied to a Date

Tom’s mom had passed away the previous winter. It was now late summer. He was worried that meant the appraisal would be “wrong,” since the house had sat empty for months.

For most estate purposes, what matters is what the home was worth on the date of death, not what it’s worth today. When that date is in the past, we do what’s called a retrospective appraisal. We value the home as of that earlier date, using sales from around that time and the best information about the home’s condition back then.

Yes, appraisers can look backward. It’s a routine part of the job.

Why It Matters

A credible date-of-death value helps in several ways:

• Settling the estate. The court, the attorney and the heirs need a fair number to work from.
• Dividing things among family. Tom’s sister was hoping to keep the farmhouse and buy out her brothers. Everyone wanted to know the split was fair.
• Tax reporting. Inherited property often receives what’s called a “step-up in basis,” which generally resets the tax starting point to the value at the date of death. That can make a real difference when the property is sold later.

I’m an appraiser, not an attorney or tax advisor, and so is everyone on our team. Talk with your estate attorney and tax professional about how the value will be used in your situation.

What Helped Tom, and What Can Help You

Tom did a few things that made the appraisal smoother, and I pass them along to every executor.

He had the date of death written down and knew what the attorney needed. He told me about the changes since his mom passed: a leaky water heater replaced and a basement full of boxes hauled away. He also dug out a few family photos showing the living room and kitchen as they looked last Christmas. Old photos can be surprisingly useful for a retrospective appraisal, especially when a home has changed.

He mentioned the extra lot next door, too, which the family almost forgot belonged to the estate. If there are outbuildings, extra lots or acreage, say so up front so nothing gets missed.

Access matters as well. Let us know who has the key, whether the furnace is on, and whether the water has been shut off.

Before I left, Tom asked if I’d like to see the recipe for his mom’s cinnamon rolls. I did. Some parts of this job don’t show up in the report, and that’s okay.

The Bottom Line 

A probate appraisal gives the estate a neutral, supportable value as of the date that matters, even if that date is months behind you. Getting it done right can prevent a lot of family tension later.

Questions about an estate property? Contact Elevate Appraisal Coop today. We’d love to help.

Stories in our posts are composites drawn from everyday appraisal work; names and details are changed.