To add to the already expert guidance others have provided, to determine the fair market value at the time of death or alternate valuation date, at times it may be necessary to procure an appraisal from a licensed appraiser to determine what the fair market value would be at the date of death or alternate valuation date.
The IRS has defined the appraisal standards that must be met along with verifiable minimum education, designation and experience requirements for an appraiser performing appraisals for estate tax purposes. The appraiser must have experience with IRS Real Property Valuation Guidelines. Treasury Regulation Section 20.2031-1(b) requires the residential appraiser to follow the valuation guidelines when preparing a real estate appraisal for tax purposes or retrospective date of death valuations. In addition, the real estate appraiser should be designated and qualified under IRS tax regulations Section 1.170A-17(a).
