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Is new appraisal required to sell property due to time that has passed since death?

Is new appraisal required to sell property due to time that has passed since death?

Q: Does the IRS require a date of death appraisal?

Yes, the IRS requires a date of death appraisal for estate tax purposes. The fair market value of the deceased's assets must be established as of the date of death to determine the estate's tax liability. This appraisal is crucial for accurately reporting the value of the estate on tax returns.

Q: Is it illegal to keep property in a deceased person's name?

Yes, it is generally illegal to keep property in a deceased person's name after their death. The property should be transferred to the rightful heirs or beneficiaries through the probate process. Keeping property in the deceased's name can lead to legal complications and may hinder the estate's administration.

Full question:

Owner of real property was deceased intestate Sept. 2005 and administrator appointed. Appraisal completed 7 months ago. Is new appraisal required to sell property due to time beyond one year since deceased became deceased?

Category: Wills and Estates
Subcategory: Probate
Date: 04/07/2025
State: California

Answer:

Section 10308 of the California Probate Code provides: sales of real property shall be reported to and be confirmed by the court before title to the property passes to the purchaser, whether the sale is a private sale or a public auction sale and notwithstanding that the property is directed by the will to be sold or authority is given in the will to sell the property.

Section 10309 of the California Probate Code provides: Unless given the power to independently administer the estate by the court,

(a) no sale of real property at private sale shall be confirmed by the court unless all of the following conditions are satisfied:

(1) The real property has been appraised within one year prior to the date of the confirmation hearing.

(2) The valuation date used in the appraisal described in paragraph (1) is within one year prior to the date of the confirmation hearing.

(3) The sum offered for the property is at least 90 percent of the appraised value of the property as determined by the appraisal described in paragraph (1).

(b) An appraisal of the property may be had at any time before the sale or the confirmation of sale in any of the following cases:

(1) Where the property has not been previously appraised.

(2) Where the property has not been appraised within one year before the date of the confirmation hearing.

(3) Where the valuation date used in the latest appraisal is more than one year before the date of the confirmation hearing.

(4) Where the court is satisfied that the latest appraisal is too high or too low.

(c) A new appraisal made pursuant to subdivision (b) need not be made by a probate referee if the original appraisal of the property was made by a person other than a probate referee. If the original appraisal of the property was made by a probate referee, the new appraisal may be made by the probate referee who made the original appraisal without further order of the court or further request for the appointment of a new probate referee. If appraisal by a probate referee is required, a new probate referee shall be appointed, using the same procedure as for the appointment of an original referee, to make the new appraisal if the original probate referee is dead, has been removed, or is otherwise unable to act, or if there is other reason to appoint another probate referee.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What does date of death valuation mean?

Date of death valuation refers to the process of determining the fair market value of a deceased person's property as of the date they passed away. This valuation is important for estate tax purposes and for distributing the property among heirs. It helps ensure that the estate is assessed accurately and fairly, reflecting the property's worth at the time of death.

Does the IRS require a date of death appraisal?

Why would a beneficiary have an appraisal on the property?

A beneficiary may request an appraisal on a property to determine its fair market value for various reasons, including understanding their inheritance's worth, preparing for potential tax obligations, or deciding whether to sell the property. An accurate appraisal can help beneficiaries make informed financial decisions regarding the estate.

Why is a date of death appraisal important?

A date of death appraisal is important because it establishes the value of the deceased's assets at the time of their passing. This valuation is essential for estate tax calculations, ensuring fair distribution among heirs, and complying with legal requirements. It helps prevent disputes among beneficiaries and provides clarity in the estate settlement process.

Is it illegal to keep property in a deceased person's name?

What are the IRS guidelines for date of death appraisal?

The IRS guidelines for date of death appraisal require that the fair market value of the deceased's assets be determined as of the date of death. Appraisals must be conducted by qualified appraisers, and proper documentation should be maintained. This valuation is critical for accurately reporting the estate's value on tax returns and ensuring compliance with tax laws.