Estate Tax Appraisal What You Need to Know

When a person dies, his or her estate may be subject to estate tax, depending on the value of the assets and the applicable exemptions. To determine the value of the estate, an appraisal is required for the real property owned by the decedent. An appraisal is an estimate of value based on how the property looks, where it is, and other things that affect its worth.


An estate tax appraisal is not the same as a regular appraisal for buying or selling a property. It has to reflect the fair market value of the property as of the date the person died, or as of an alternate valuation date six months after they died, if the executor chooses that option. It also has to be done by a qualified appraiser, who is someone who has the skills and experience to value a property fairly and professionally.

Why You Need an Appraisal for Estate Tax Purposes

You may need an appraisal for estate tax purposes for several reasons, such as:

  • Sharing the estate among the heirs: If the will or trust says that the heirs should get equal parts of the estate, you need to know how much everything is worth to divide it fairly.
  • Getting small estate status: If the value of the assets that go through probate is below a certain amount, the estate may qualify for easier probate procedures that can save you time and money as the executor and make it simpler for the heirs to get their property.
  • Setting tax basis: The heirs of a property get a new tax basis equal to the value on the date the person died. This basis is used to figure out capital gains tax when they sell the property later.
  • Paying estate taxes: The value of the estate decides whether or not it has to pay federal or state estate tax. The federal estate tax exemption for 2021 is $11.7 million per person ($23.4 million for married couples), adjusted for inflation. Some states also have their own estate or inheritance taxes, with lower limits and different rules.
Estate Tax

Frequently Asked Questions (FAQs)

You can look for appraisers in your area on the Appraisal Institute website or contact them directly. You can also ask for recommendations from your lawyer, accountant, or real estate agent. Make sure the appraiser has experience and knowledge in valuing properties like yours and knows the local market situation and trends.

The fee for an estate tax appraisal depends on many factors, such as the size, type, location, and complexity of the property; the reason and goal of the appraisal; and the skills and fees of the appraiser. The average fee ranges from $300 to $600 for a single-family home, and from $600 to $1,200 for a business or industrial property. However, the fee may change a lot depending on the specific situation of each case.

The time needed for an estate tax appraisal also depends on different things, such as how easy it is to get to the property; how much and how good data and information are available; and how busy and how fast the appraiser is. The average time needed ranges from two to four weeks for a home, and from four to eight weeks for a business or industrial property. However, the time may change a lot depending on the specific situation of each case.

No, you cannot use an online value tool or an old appraisal for estate tax purposes. Online value tools, such as Zillow or Trulia, are not good or right sources of value, as they do not consider the special features and conditions of the property, the local market changes, and the date you picked. Old appraisals are also not good for estate tax purposes, as they show the value of the property on a different date, which may have changed a lot since then. You need to get a new appraisal by a qualified appraiser who can give an independent and fair opinion of value on the date of death or the different date you picked.

If you don’t agree with the appraisal for estate tax purposes, you have several options. You can ask the appraiser to look at and change the report if you find any mistakes or things left out. You can also get another opinion from another qualified appraiser who can give a different view and analysis. You can also fight the appraisal in court if you are in a disagreement or lawsuit with other people over the value of the property. However, you should know that fighting an appraisal can be expensive and take a long time, and there is no promise that you will get a better result.

One of the best places to get a reliable and honest appraiser for estate tax purposes is Residential Appraisal and Valuation Services. We are a full-service appraisal company that specializes in appraisals for estate tax purposes. We have a team of qualified, certified, and experienced appraisers who can give you accurate, reliable, and fast appraisals for your property. We follow the highest standards of quality and honesty in our work. We also offer good rates and flexible times to meet your needs.

If you need an appraisal for estate tax purposes, don’t wait to contact us today. You can visit our website at www.residentialavs.com or call us at +1617-910-3700. We will be happy to help you with your appraisal needs.

We would love to work with you.

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