While not always a requirement, obtaining a formal appraisal for an inherited home is strongly recommended for several key reasons. Primarily, it helps establish the "stepped-up basis" for capital gains taxes, which can significantly minimize future tax liability if the property is sold. Additionally, it ensures fair valuation among multiple beneficiaries, preventing potential disputes. A dated, official appraisal provides an accurate and defensible value, safeguarding against future tax issues and inter-heir conflicts.
