Estate Appraisals: What to Know Before You Distribute Assets

Estate Appraisals: What to Know Before You Distribute Assets

When a loved one passes away, the questions pile up fast — legal, emotional, financial. And one of the most overlooked, yet critically important steps in the estate process is the home appraisal.

For families, attorneys, and fiduciaries alike, getting a clear and defensible opinion of value is about more than paperwork. It’s about setting a solid foundation for everything that comes next: taxes, asset division, and peace of mind.

But estate appraisals aren’t one-size-fits-all. And if you’ve never had to request one before, here’s what you need to know.

It’s not just about “what the house is worth.”

Most people think an appraisal is a current market estimate. But in estate cases, it’s often about past value — what the property was worth as of a specific date, usually the date of death or six months after (if filing with the IRS under the alternate valuation date).

That means the appraiser isn’t just pulling recent sales. They’re analyzing historical data, filtering it through the lens of what the market was doing at that time, and drawing a defensible conclusion based on that past snapshot.

This requires a different skill set — and a very careful approach to methodology.

The report has to be ready for legal review.

Estate appraisals aren’t just for internal use. They often become part of probate court filings, IRS documentation, or estate accounting. That means they need to be fully USPAP-compliant, clearly written, and neutral in tone.

In practical terms, this means:

• Explaining every adjustment and data point
  
  
• Using comparable sales that reflect the market at the relevant date
  
  
• Providing narrative, not just numbers
  
  
• Avoiding assumptions or shortcuts that could raise red flags during audit or review
  
  

If the report reads like it was rushed or overly technical, it can lead to challenges — from beneficiaries, tax authorities, or opposing counsel.