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Understanding Date of Death Appraisals and Their Importance in Santa Monica
April 17th, 2025 9:02 AM

Understanding Date of Death Appraisals and Their Importance in Santa Monica

Hand offering a piece of real estate to an inheritor, symbolizing a time of death appraisal process by Pacific Home Appraisers

Santa Monica’s iconic blend of coastal luxury, walkable neighborhoods, and architecturally significant homes makes it one of the most desirable and high-value markets in Los Angeles County. When a loved one passes away, their Santa Monica property is often the estate’s most significant asset. In such cases, a Date of Death Appraisal becomes a critical part of the legal and financial process of settling the estate.

Whether you’re a beneficiary, estate attorney, fiduciary, or tax professional, this guide will explain the importance of obtaining a certified Date of Death Appraisal in Santa Monica, how the process works, and why local expertise is key to ensuring compliance and accuracy.


What Is a Date of Death Appraisal?

A Date of Death Appraisal is a certified real estate valuation that determines a property's fair market value as of the day the property owner passed away. This is not a current appraisal—it is retrospective, meaning it uses historical market data and comparable sales from that specific date to determine value.

This type of appraisal is required for:

  • Probate and estate settlement

  • IRS estate tax reporting (Form 706)

  • Establishing a stepped-up basis for capital gains

  • Trust administration

  • Equitable distribution of real estate among heirs


Why Is It Important in Santa Monica?

1. IRS and Estate Tax Filings

In high-value areas like Santa Monica, estates often exceed the federal estate tax exemption limit. A certified Date of Death Appraisal ensures accurate reporting on IRS Form 706, helps calculate potential tax liability, and reduces the risk of errors or audits. The IRS will not accept informal or estimated values—certified documentation is required.

2. Establishing a Stepped-Up Basis

When real property is inherited, the cost basis is adjusted—or "stepped up"—to reflect its fair market value at the time of death. This is crucial for determining capital gains taxes when the property is later sold. A professional appraisal helps document this new value and supports accurate tax filings for beneficiaries.

3. Equitable Distribution Among Heirs

If multiple heirs are involved, a certified appraisal offers an impartial, third-party valuation that supports fairness in the division of assets. Whether the property is sold or retained by one beneficiary, the appraisal becomes a foundational tool in avoiding disputes.

4. Court and Fiduciary Compliance

Probate courts, attorneys, trustees, and fiduciaries require USPAP-compliant appraisals to demonstrate accurate asset valuation. A Date of Death Appraisal is the standard documentation used to complete legal proceedings and trust administration.


The Santa Monica Real Estate Landscape

Santa Monica offers a variety of real estate options, each with unique valuation factors:

  • North of Montana Avenue – High-value estates and custom homes

  • Santa Monica Canyon – Homes with ocean and canyon views

  • Ocean Avenue and Wilshire Corridor – Luxury condos and mixed-use developments

  • Sunset Park and Pico Neighborhoods – Walkable residential zones with high demand

  • Downtown and Mid-City – Modern and historical mixed-density properties

In this market, property value is influenced by architectural style, proximity to the beach, school districts, zoning, lot size, and renovation history. Only a locally experienced appraiser can properly account for these variables in a retrospective valuation.


What Does a Date of Death Appraisal Include?

A certified appraisal from Pacific Home Appraisers includes:

  • A detailed interior and exterior property inspection (where access is granted)

  • Historical market research based on the date of passing

  • Selection and adjustment of comparable sales from the same neighborhood and time period

  • Evaluation of upgrades, condition, size, location, and amenities

  • Parcel maps, assessor records, photos, and zoning details

  • A final certified opinion of value

  • Delivery of a USPAP-compliant report in PDF format

This report is accepted by probate courts, estate attorneys, CPAs, the IRS, and trustees.


Who Typically Requests a Date of Death Appraisal?

  • Estate attorneys managing probate filings

  • Trustees and fiduciaries administering living or irrevocable trusts

  • CPAs and tax advisors preparing IRS Form 706

  • Heirs and beneficiaries dividing or inheriting real estate

  • Real estate professionals assisting with estate property sales

  • Court-appointed referees in contested estate matters


The Appraisal Process

1. Initial Consultation

We begin with a brief consultation to gather details, including the effective date of value (date of death), property information, intended use of the appraisal, and access logistics.

2. Property Inspection

A full inspection documents square footage, layout, condition, updates, and any distinguishing features like guest units, ADUs, ocean views, or premium finishes.

If the property is tenant-occupied, in probate hold, or otherwise inaccessible, we can perform an exterior-only or desktop appraisal with supporting documentation.

3. Market Research and Comparable Analysis

We identify comparable sales from the same time frame and neighborhood. Each sale is adjusted based on condition, size, lot attributes, and location to arrive at an accurate retrospective value.

4. Report Completion and Delivery

Reports are completed within five to seven business days, with rush delivery available in 48 hours upon request. Final reports are sent in secure PDF format and can be shared with legal, tax, or estate professionals.


Frequently Asked Questions

Can an appraisal be completed long after the date of death?

Yes. Retrospective appraisals are common and often requested months or even years later. As long as historical data is available, we can accurately determine the fair market value for the specific date.

Is the appraisal accepted by courts and the IRS?

Absolutely. Our reports are USPAP-compliant and certified, making them fully acceptable for IRS estate tax filings, probate court submissions, and trust-related documentation.

What if the estate includes multiple properties?

Each property requires its own appraisal. We provide coordinated scheduling and bundled pricing for estates with multiple real estate holdings.


Why Choose Pacific Home Appraisers in Santa Monica?

With more than 5,000 appraisals completed throughout Los Angeles County, Pacific Home Appraisers is trusted by attorneys, CPAs, trustees, and heirs to deliver accurate and defensible real estate valuations. Our extensive experience in the Santa Monica market—from beachfront condos to blufftop estates—ensures that every appraisal reflects the area’s true market dynamics.

What Sets Us Apart:

  • Deep understanding of Santa Monica’s micro-markets and property types

  • Certified appraisers experienced in estate, trust, and high-value properties

  • Reports trusted by courts, tax professionals, and legal representatives

  • Timely delivery: standard 5–7 business days, with 48-hour rush available

  • Confidential, responsive, and professional service during sensitive times


Request a Certified Date of Death Appraisal in Santa Monica

Circle logo of Pacific Home Apprasers displaying the company name and telephone number for contact.

If you’re managing a trust, estate, or probate case and need a Date of Death Appraisal in Santa Monica, contact Pacific Home Appraisers for certified, court-ready valuations backed by experience and local expertise.

Call 818-880-1466
Visit www.pacifichomeappraisers.com to schedule your appraisal or learn more.

We’re here to help you move forward with clarity, accuracy, and confidence.


Posted by Tony Kiani on April 17th, 2025 9:02 AMPost a Comment

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