Estate | Copper State Appraisal Services

Estate Appraisals: Date of Death & Estate Tax

Copper State Appraisal – Compassionate Expertise for Life’s Most Important Transitions

Navigating the complexities of estate settlement can be overwhelming, especially during times of loss. At Copper State Appraisal, we provide professional, unbiased estate appraisal services to help families, executors, attorneys, and financial advisors make informed decisions with confidence and clarity.

Date of Death Appraisals

Establishing Fair Market Value When It Matters Most

A Date of Death appraisal determines the fair market value of real estate as of the owner’s passing. This valuation is essential for:

Equitable Asset Distribution: Ensures all heirs receive a fair share of the estate, based on accurate property values.
IRS & Legal Compliance: Provides the necessary documentation to satisfy IRS requirements and withstand scrutiny in probate or legal proceedings.
Defensible Reporting: Our appraisals are thorough, well-documented, and stand up to review by tax authorities, attorneys, and courts.

Example

Imagine a family in Phoenix inherits a home after their father passes away. The executor needs to divide the estate fairly among three siblings and must also report the property’s value to the IRS for estate tax purposes. Copper State Appraisal is called in to perform a Date of Death appraisal. We research comparable sales from the date of passing, inspect the property, and prepare a detailed report establishing the home’s fair market value at that specific time. This impartial valuation ensures each sibling receives their fair share, provides the required documentation for probate and tax filings, and helps prevent any disputes over the property’s worth. The family can move forward with confidence, knowing the process is both fair and fully compliant with legal requirements.

Estate and Capital Gains Tax Guidance

Protecting Your Family’s Financial Interests

Accurate appraisals are critical for minimizing tax liability and supporting sound financial planning. We help you:

- Support Step-Up in Basis: Our valuations establish a new tax basis for inherited property, helping reduce capital gains taxes if the property is later sold.
- Clarify Tax Exposure: We provide clear, detailed reports that help you and your advisors understand potential estate and capital gains tax implications.
- Minimize Disputes: Precise, impartial appraisals reduce the risk of disputes among heirs or with tax authorities.

Example

Suppose you inherit a home that was purchased decades ago for $100,000, but at the time of your loved one’s passing, its fair market value is $500,000. Our Date of Death appraisal establishes this new value as your tax basis. If you later sell the property for $510,000, you would only owe capital gains tax on the $10,000 increase since the date of inheritance-not on the full $410,000 increase since the original purchase. This step-up in basis, supported by our professional appraisal, can result in substantial tax savings and help prevent disagreements among heirs about the property’s value.