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Schedule Date of Death (DOD) Appraisals
Property & Assets
Some assets may require a formal Date of Death appraisal to establish fair market value. These valuations are used for probate, estate tax filings, and equitable asset distribution. The estate planning attorney or CPA will typically advise if needed. If so, engage a qualified appraiser familiar with estate work.
Frequently Asked Questions
Process
What is a Date of Death appraisal?
A Date of Death (DOD) appraisal establishes the fair market value of property as of the date the person died. This value becomes the new cost basis for inherited assets (the "stepped-up basis"), which determines capital gains tax when the property is eventually sold. Without a DOD appraisal, the IRS may assign its own value, which could result in a higher tax bill.
Costs
Why do I need a Date of Death appraisal?
The stepped-up basis saves heirs significant capital gains taxes. For example, if a home was purchased for $200,000 and is worth $500,000 at death, the new basis is $500,000. If you sell for $510,000, you owe taxes on only $10,000 in gains instead of $310,000. A DOD appraisal is also required for the estate tax return (Form 706) if the estate exceeds the filing threshold, and it helps resolve disputes among beneficiaries.
How much do Date of Death appraisals cost?
Real estate appraisals typically cost $300-$600 for a standard home, $500-$1,500 for complex or high-value properties. Retrospective appraisals (performed after the date of death) may cost slightly more because the appraiser must research comparable sales from the date of death. Personal property appraisals cost $100-$500 per item. Schedule appraisals within 60-90 days of death while comparable market data is still readily available.
Legal
Who can perform a Date of Death appraisal?
Use a licensed, certified appraiser—specifically one designated as a Certified General Appraiser (for real estate) or a qualified personal property appraiser (for valuables). The IRS requires appraisals to meet Uniform Standards of Professional Appraisal Practice (USPAP). For estate tax purposes, the appraiser must have relevant credentials and experience. Ask for references and confirm their license with your state's appraisal board.