Date of Death Appraisal vs Current Value: Which Effective Date Should an Estate Appraisal Use?

A date of death appraisal values an item as of the day its owner died, using only the market information that existed or could have been known on that date. For federal estate tax and most probate filings, that is the date that controls. A current-value appraisal answers a different question, and mixing the two up is one of the most common and costly mistakes executors make.

This guide explains how retrospective valuation works, when the alternate valuation date applies, and which purposes call for a current-value report instead. Our team prepares both kinds through our estate appraisal services, and the first decision in every engagement is choosing the right effective date.

What Is a Date of Death Appraisal?

A date of death appraisal is a retrospective appraisal: the appraiser's effective date sits in the past, while the report is written later. The effective date is the date to which the analysis, opinions, and conclusions apply. The report date is the day the document is completed and signed.

The two dates are often months apart. An executor might order the appraisal in October for a person who died in January. The report is dated October, but the value opinion speaks as of January.

That gap shapes the research. The appraiser may use only information that was known or knowable on the effective date. An auction result from last week, however dramatic, cannot support a value as of a date before it happened.

Key takeaway: The effective date tells the reader what moment in time the value describes. The report date only tells them when the work was finished.

Which Valuation Date Does Federal Estate Tax Use?

Federal estate tax generally values property at its fair market value on the date of death. The Instructions for Form 706 define fair market value as the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion, both with reasonable knowledge of the relevant facts.

The size of the estate decides whether a return is required. The federal basic exclusion amount for 2026 decedents is $15,000,000 . Many estates fall well below that figure and owe no federal estate tax.

A return may still make sense below the threshold. Executors sometimes file Form 706 to document values that will support the beneficiaries' basis, to elect portability for a surviving spouse, or to start the statute of limitations running. Whether that is worthwhile is a question for the estate's CPA or attorney, but the appraisal date is the same either way: the date of death, unless the executor elects otherwise.

How Does the Alternate Valuation Date Work?

The alternate valuation date is six months after the date of death, and the executor may elect it on Form 706 under IRC Section 2032. It exists to give relief when an estate loses value shortly after death.

The Form 706 instructions and the regulation under Section 2032 set the ground rules:

• Both numbers must drop: The election is allowed only if it reduces both the gross estate and the estate tax liability.
• All or nothing: The election applies to the whole estate. The executor cannot apply it asset by asset and pick the lower value for each item.
• Early dispositions use the disposition date: Property distributed, sold, exchanged, or otherwise disposed of within 6 months after death is valued as of that date.
• Everything else is valued at 6 months: Property still held at the end of the period is valued as of the date six months after death.
• Lapse of time is handled separately: Property affected by the mere passage of time, such as certain terminable interests, is generally valued as of the date of death or the earlier disposition date, with an adjustment as the regulation describes.

The appraiser does not choose between these dates. The executor and the estate's tax advisor make the election, and the appraiser then values each item as of the applicable date.

Example: A collector dies on January 10, 2026. Without an election, every item is valued as of January 10, 2026. If the executor validly elects alternate valuation, a painting sold at auction on April 20, 2026 is valued as of April 20. A rug still in the estate after the six-month period is valued as of July 10, 2026. A report written in November 2026 must still speak to those statutory dates, not to November's market.

Date of Death Valuation for Probate and Basis

Probate courts generally require personal property to be inventoried at fair market value as of the date of death. A date of death appraisal gives the executor a defensible figure for the inventory and for later accountings to heirs and the court. Before an appraisal begins, our team asks for a copy of the death certificate and the letters of appointment or other document showing the executor's authority.

The same value often drives income tax later. Under IRC Section 1014, the basis of inherited property is generally its fair market value at the date of death, the so-called stepped-up basis. When an executor elects alternate valuation, the estate-tax value can drive basis instead. The Form 8971 instructions state that the value reported to beneficiaries is generally the fair market value on the date of death or on the alternate valuation date used for the estate tax return.

That is why a sloppy or undated valuation creates trouble years later. When a beneficiary sells an inherited ring or a vehicle, the gain is measured against that basis. A clean date of death report is the document that supports it.

Pro tip: Ask for the appraisal as soon as the executor is appointed. Sale records, insurance schedules, and photographs from near the date of death are easier to find early, and they help the appraiser reconstruct the market as it stood then.

When Do You Need a Current-Value Appraisal Instead?

A current-value appraisal is the right tool when the question is what the property is worth now, not what it was worth at death. Several common estate situations fall into that category:

• Buyouts between heirs: When one heir wants to keep a piece of furniture or a collection and pay the others their share, the fair price is today's value.
• Sale of estate property: An executor deciding on an asking price or an auction reserve needs the current market picture.
• Division of property: Splitting contents among beneficiaries in kind, so each receives items of equal value, usually requires current figures.
• Insurance coverage: An heir who keeps an item and insures it needs a value that reflects current replacement conditions.
• Fiduciary or litigation needs: Some state accounting rules or disputes among beneficiaries call for current value, sometimes alongside a date of death figure.

These purposes do not replace the federal estate tax valuation date. An estate can reasonably need both reports for the same item: one as of the date of death for the return and the inventory, and one as of today for the buyout.

The table below summarizes which effective date fits each purpose.

Purpose	Effective Date	Appraisal Type
Federal estate tax (default)	Date of death	Retrospective
Federal estate tax with Section 2032 election	Disposition date or 6 months after death	Retrospective
Probate inventory and court filings	Date of death	Retrospective
Basis reporting to beneficiaries	Date of death or alternate valuation date	Retrospective
Buyout between heirs	Current	Current
Sale or distribution planning	Current	Current
Insurance on retained items	Current	Current
Charitable gift made by will	Date of transfer to the charity	Retrospective or current, depending on timing

The Charitable Gift Exception

For a decedent who died on or after January 1, 2016, a charitable gift made by will is treated as made by the estate when the property is transferred to the charity, not immediately before death. The value for tax receipting purposes is therefore measured as of the date of transfer. This is general industry knowledge for appraisers working on estates .

The practical consequence is that the appraiser must confirm the date of the transfer or deed of gift before researching anything. Collecting comparable sales from the wrong time frame wastes effort and produces a report built on the wrong date. For a donation, the date of death may be one number the estate needs, and the transfer date another.

How Do Appraisers Reconstruct Value as of a Past Date?

An appraiser reconstructs a past value by researching sales and market conditions as they stood on the effective date, then reporting the conclusion with that date clearly stated. Our appraisers prepare reports in accordance with USPAP, published by The Appraisal Foundation, and hold credentials with leading organizations such as the ISA, ASA, and AAA. If you are vetting an appraiser for this work, our guide to estate appraiser credentials explains what executors should verify.

A well-built date of death report identifies the following items:

• The effective valuation date and the report date
• Whether the valuation is for date of death or alternate valuation purposes
• The definition of fair market value applied
• The property rights being appraised and the valuation premise
• The market data and assumptions used to reconstruct conditions on the effective date

One market-timing rule comes up often. Under Revenue Procedure 65-19, a sale price realized within a reasonable period after the valuation date is generally presumed to reflect the value on that date, provided there was no substantial change in market conditions in between. An estate that sells an item at auction a few weeks after death can use that result as strong evidence, but a sale months later in a shifted market may not carry the same weight.

For personal property, the work is delivered online by default. Our Advanced (IRS-qualified) personal property appraisals start from $295, and every engagement is a fixed fee quoted before work begins, never billed hourly. The fee reflects scope: how many items, the complexity of the property, the completeness of the records, and the intended use. It does not depend on the property's value.

Settle the Valuation Date Before You Order the Appraisal

The date question comes first and should be answered before anyone starts researching. Confirm with the estate's CPA or attorney whether a federal return is required, whether the executor will elect alternate valuation, and whether any items are going to charity under the will. Then identify which items also need a current-value report for buyouts, sales, or insurance.

If you are an executor with property to value, our team can scope both the date of death and current-value reports in one conversation. You can request an estate appraisal and tell us the date of death, the purpose, and the items involved.

This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Readers should consult a qualified attorney or CPA regarding their specific circumstances.