Whether you are settling an estate, administering a living trust, or working through probate, you need a reliable value for the home, usually as of the day a loved one passed. Robert Howlett, SRA, AI-RRS, prepares independent appraisals that support tax filings, trust accountings, buyouts between heirs, and fair distributions.
Whether a home passes through a will, a living trust, or the probate court, someone has to establish what it is worth. The appraisal supports the paperwork, the taxes, and the decisions the family has to make.
Executors and administrators gather the assets, pay debts and taxes, and distribute what remains. The home is often the largest asset.
Many California families use a living trust to avoid probate. The successor trustee still needs a supported value to do the job properly.
When there is no trust, or the home was left outside of it, the estate goes through the probate court.
Most estate and trust work comes down to one question: what was the home worth on a specific past date? That is the work we do most, whether the date is a passing, a trust event, or the day before a fire.
A date of death appraisal is a retrospective appraisal: it values the home as of a specific past date, using the comparable sales and market conditions from that time, not today's. That date is most often the day the owner passed, but it can be any date your attorney, CPA, or insurer needs, even months or years later.
The value that sets the heirs' new tax basis, including a surviving spouse's basis for community property.
A trust funding date, the date of a gift, or another date named by counsel or a CPA.
When someone sells a home, capital gains tax is based on the difference between the sale price and the owner's tax basis, which is usually what they paid plus improvements. Inherited property is treated differently.
Under federal tax law, property inherited at death generally receives a new basis equal to its fair market value on the date of death. The decades of appreciation during the original owner's lifetime are not taxed to the heirs.
The new basis has to be supported. A credible date of death appraisal is the record your CPA relies on, and the evidence if the IRS ever asks how the value was determined.
When the beneficiaries sell, they generally pay tax only on the gain since the date of death. An unsupported or low value can mean paying tax on gain that should have been erased.
Figures are illustrative. The heirs avoid capital gains tax on $750,000 of appreciation that happened during their parents' lifetime.
For a home held as community property, both halves can generally receive a step-up when the first spouse dies, not just the deceased spouse's half. The surviving spouse may then sell with little or no taxable gain. A date of death appraisal documents the value for that step-up.
Property given away during life usually keeps the giver's original basis, with no step-up. That difference is one reason estate planners and CPAs pay close attention to how and when property passes.
This is general information, not tax or legal advice. Your CPA or estate attorney can tell you how these rules apply to your situation.
Every estate is different, but these situations come up again and again. In each one, an independent value helps the family move forward with less conflict.
A neutral value sets a fair buyout price for the other beneficiaries, so no one feels shortchanged.
An independent appraisal takes the number out of the argument. If someone has another appraisal, Robert can review it as an AI-RRS review specialist.
When one beneficiary receives the home and others receive cash or investments, the appraisal lets the trustee or executor equalize the shares.
The surviving spouse may need a date of death value to divide the trust, and to document the step-up in basis on community property.
Under Prop 19, a child who makes the inherited home their primary residence may keep part of the parent's property tax base. The amount depends on the home's market value at the date of death.
Heirs with an FHA reverse mortgage (HECM) can generally keep the home by paying the loan balance or 95% of the appraised value, whichever is less. A current appraisal is part of that process.
A pre-listing appraisal helps the executor or trustee set a realistic price and shows beneficiaries the sale was fair.
It is not too late. A retrospective appraisal values the home as of the date of death using the sales and market conditions from that time.
Settling an estate is hard enough. We handle the appraisal with patience and explain each step in plain language.
Robert works with attorneys, accountants, financial planners, and professional fiduciaries across Southern California.
A note on probate: In California probate, a court-appointed probate referee values estate assets for the inventory. An independent appraisal still documents the tax basis, supports trust administration outside of probate, and gives the family and its attorney their own evidence if a value is in question.
An estate appraisal may be read by the IRS, a court, a CPA, and every beneficiary. Robert holds two of the Appraisal Institute's designations, earned through advanced coursework, peer-reviewed work, and years of experience.
The Appraisal Institute's residential designation, requiring training and standards well beyond the state license.
Specialized training in reviewing other appraisals, useful when beneficiaries or the IRS question a value.
Licensed by the California Bureau of Real Estate Appraisers (BREA).
See what each designation requires and how designated appraisers compare with state-licensed appraisers.
When beneficiaries disagree, a trustee's decisions are challenged, or the IRS questions a value, the appraiser who wrote the report should be the one to defend it.
The appraiser who inspected the home and wrote the report is the one who testifies.
Robert explains how the market looked on the date of death and why the comparable sales support the value.
The SRA and AI-RRS designations and 25 years of experience make his qualifications hard to challenge.
As a review specialist, Robert can identify weaknesses in another appraiser's report and testify to them.
A well-supported date of death value protects the step-up in basis, which can save beneficiaries thousands of dollars in capital gains tax.
We walk you through the appraisal and make sure all of your questions are answered.
We keep it efficient and respectful during a difficult time, with clear communication from scheduling to final report.
Call, text, or request a free quote. Tell us the property address and the date of death, or another date your attorney or CPA needs.
Robert inspects the home and researches the sales and market conditions as of the effective date.
You get a detailed, USPAP-compliant report, typically within about 3 days of the inspection, ready for your CPA, attorney, or trustee.
No. A retrospective appraisal values the home as of the date of death using the sales and market conditions from that time. These are common, and we do them regularly.
Yes. A retrospective appraisal can value the home as it was just before the fire, using pre-fire sales and records such as photos, permits, and listing history. This can support an insurance claim, a casualty loss calculation, or an estate's date of death value.
Tell us about any repairs, clean-out, or updates made after the passing. The appraisal reflects the home's condition as of the date of death, so photos and records from that time are helpful.
Often yes. The date of death value becomes the beneficiaries' basis for any future sale, and it helps divide the estate fairly or support a buyout between heirs. It is easier to document now than years from now.
Usually yes. A trust avoids probate, but the successor trustee still needs a date of death value for the trust accounting, the beneficiaries' tax basis, and dividing or distributing the property fairly.
Probate is a court-supervised process for property that passes by will or without one. Trust administration happens privately, with a successor trustee in charge. Both usually need a supported value for the home. Your attorney can explain which applies to you.
Yes. An independent appraisal gives everyone the same neutral number to work from, which is often the fastest way to settle a buyout.
The probate referee values assets for the court's inventory. Many attorneys and CPAs also want an independent, USPAP-compliant appraisal for tax basis or if the value may be disputed. Your attorney can advise what your case needs.
Usually the executor, trustee, or administrator, or their attorney or CPA. Beneficiaries sometimes order one as well. The appraisal is independent, so the value does not depend on who orders it.
Call today or fill out our free quote request form. Tell us the address and the date of death, and we'll take it from there.