When should an appraisal be done when settling an estate?

Question

My mother passed away about 3 years ago and she owned her home as tenants in common with her husband (they were not married when they bought the home). Now that she is deceased we are trying to settle the estate and her ex-husband says the appraisal of the property is based on the date when she died, however he just got the appraisal done last week and they are guessing how much they think the house was worth when she died. It was my assumption that the appraisal is done at the time the estate is being settled because how can someone accurately value a home based on what the market was 3 years ago. I did leave a message for my attorney but she left for the night and I wanted to see what I can find out prior to speaking with her. By the way I live in New York.

Answer 1

Each state's probate laws will differ somewhat on this point, but typically the home should be valued as of the date of death. Also, in many states, a real estate agent can simply provide you with a market analysis of the home on the date of death.  They will do this by reviewing sales figures for comparable properties around the date of death.  The Fair Market Value upon death becomes the heir's basis (cost) for the house.  This is the amount that is counted to determine if any inheritance taxes are due, etc.  

You need to speak with the estate attorney (if you have one) to find out what New York probate law says.  If the estate does not have an attorney, it might be a good idea to retain one, if only for this issue, to avoid further costs from court proceedings in the future.  

Answer 2

When my mother died, the value was based on when the appraisal was done (while the estate was being settled).  

Answer 3

Get the appraisal done now. Values have changed so much. If her ex wants to pay you the amount for a three year old appraisal, let him do it, his loss. If he wants you to pay for a three year old appraisal tell him no. What was then is not what is now!

Answer 4

For Federal Estate tax purposes the estate can elect to have  properties valued at the date of death or one year from the dtate of death. NY which has its own estate taxes may also follow that rule.