Do You Need a Date-of-Death Appraisal?

A date-of-death value is important for two reasons, so yes, you generally want one documented. First, it establishes the stepped-up basis that determines your capital gains when you sell, so a solid valuation can save real tax money. Second, in probate the court-appointed referee appraises the home as of the date of death for the estate's inventory.

In many probate cases the referee's appraisal serves this purpose, and you may not need a separate one. In trust or non-probate situations, or where you want extra support for the basis, an independent date-of-death appraisal from a qualified appraiser is worth obtaining. Keep the documentation with your records for when you file taxes on the sale. A CPA can confirm what your situation needs.