A date-of-death real estate appraisal determines the value of a property on the exact date a person passed away. This type of appraisal is commonly required for estate settlement, probate, and tax reporting.
Why Is a Date-of-Death Appraisal Needed?
When someone dies, their assets must be valued for legal and financial purposes. Real estate is often the most valuable asset in an estate.
A retrospective appraisal may be required for:
- Probate court
- Estate tax reporting
- Capital gains calculation
- Inheritance distribution
- CRA / tax purposes
- Legal disputes between beneficiaries
The appraisal must reflect the market value as of the date of death, not the current value.
How the Value Is Determined
The appraiser researches market data from the time around the date of death, including:
- Comparable sales from that period
- Market conditions at that time
- Property condition on that date
- Historical listings and records
This process is called a retrospective appraisal.
Who Uses Date-of-Death Appraisals?
These reports are commonly used by:
- Estate lawyers
- Accountants
- Executors
- Trustees
- Courts
- Tax professionals
Because the report may be reviewed by government agencies or courts, it must be prepared by a qualified appraiser.
Why Accuracy Matters
Incorrect valuation can lead to:
- Tax penalties
- Legal disputes
- Problems with probate
- Issues with CRA reporting
A professional appraisal protects the estate and the executor.
Conclusion
A date-of-death appraisal provides the official market value of a property for estate and tax purposes. Working with an experienced real estate appraiser ensures the report meets legal and professional standards.
Contact us if you need a retrospective or date-of-death appraisal for estate, probate, or tax reporting.