A date of death appraisal establishes what real estate was worth on the day its owner died. It has several common uses. First, it documents the stepped-up tax basis for heirs, which determines how much capital gains tax they owe if they later sell the property. Second, it supports federal estate tax returns when an estate is large enough to require Form 706. Third, probate courts and trust administrators use it to inventory estate assets accurately. Fourth, it helps families divide property fairly among multiple heirs, since everyone is working from a documented value rather than guesses. It can also be used for state-level filings, buying out a sibling’s share, or resolving disputes between beneficiaries. Because the appraisal reflects a specific past date, it is prepared as a retrospective appraisal by a licensed appraiser. Attorneys, CPAs, and fiduciaries typically request one early in estate administration so every later decision rests on a defensible number.
