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Understanding Date of Death Appraisals and Their Importance in Pacific Palisades
April 17th, 2025 8:51 AM

Understanding Date of Death Appraisals and Their Importance in Pacific Palisades

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

Pacific Palisades, with its coastal cliffs, elegant estates, and prestigious zip codes, is one of the most sought-after residential markets in Los Angeles. Known for its serene neighborhoods like The Riviera, Huntington, and Castellammare, real estate in Pacific Palisades often carries high value and emotional significance. When a property owner passes away, accurately determining the value of their home is a legal and financial necessity. This is where a Date of Death Appraisal becomes a crucial component of estate planning and administration.

Whether you're an executor, heir, attorney, or CPA, understanding the role of a Date of Death Appraisal in Pacific Palisades can help ensure a smooth and legally compliant estate settlement.


What Is a Date of Death Appraisal?

A Date of Death Appraisal is a certified real estate valuation that determines the fair market value of a property as of the exact date the property owner passed away. Unlike standard appraisals used for current sales or refinancing, this is a retrospective appraisal, based on comparable sales and market conditions that existed at the time of death.

These appraisals are essential for:

  • Probate court filings

  • Trust administration

  • IRS estate tax reporting (Form 706)

  • Establishing a stepped-up basis for capital gains

  • Equitable distribution among heirs or beneficiaries


Why It's Important in Pacific Palisades

1. IRS and Estate Tax Reporting

For estates that exceed federal exemption thresholds, the IRS requires a certified appraisal to determine the fair market value of any real estate holdings. In Pacific Palisades—where properties commonly range from $3 million to over $30 million—estate tax exposure is a significant consideration. A Date of Death Appraisal ensures accurate tax reporting and reduces the risk of disputes or audits.

2. Establishing a Stepped-Up Basis

When a property is inherited, the cost basis resets to the fair market value on the date of death. This stepped-up basis helps minimize capital gains tax when the property is sold in the future. An accurate and defensible appraisal protects heirs from overpaying in taxes and ensures compliance with IRS standards.

3. Fair Division of Inherited Property

In estates with multiple heirs, a certified appraisal provides a neutral, third-party opinion of value. Whether the property is sold, transferred, or divided, an appraisal helps facilitate fair decision-making and reduces the chance of disagreements.

4. Required by Probate Courts and Fiduciaries

Probate courts, estate attorneys, and trustees often require a certified Date of Death Appraisal to support the administration and distribution of assets. The appraisal serves as official documentation for the estate’s accounting and asset inventory.


Understanding the Pacific Palisades Real Estate Market

Pacific Palisades includes a variety of distinct residential enclaves, each with its own pricing dynamics and buyer profiles. An appraiser must understand the nuances of each to determine accurate valuations.

Key neighborhoods include:

  • The Riviera – Estate properties near the Riviera Country Club with large lots and ocean views

  • Huntington Palisades – Wide streets and walkability to Palisades Village

  • Castellammare and Paseo Miramar – Coastal bluff homes with panoramic views

  • Marquez Knolls and El Medio Bluffs – Hillside and blufftop homes with varying views and access

  • Alphabet Streets – High-demand walkable area popular for families and investors

In Pacific Palisades, value is influenced by proximity to the coast, privacy, lot size, school districts, view orientation, architectural style, and neighborhood prestige.


What Does a Date of Death Appraisal Include?

A certified appraisal from Pacific Home Appraisers includes:

  • Full interior and/or exterior inspection (where access is available)

  • Retrospective market analysis from the date of death

  • Comparable sales adjusted for time, size, location, amenities, and condition

  • Assessor records, parcel maps, and zoning information

  • Photographs, property descriptions, and valuation commentary

  • Final certified opinion of value, delivered in PDF format

  • USPAP-compliant report accepted by IRS, courts, and legal professionals


Who Needs a Date of Death Appraisal in Pacific Palisades?

  • Estate attorneys managing probate

  • CPAs and financial advisors preparing estate tax filings

  • Trustees and fiduciaries administering trusts

  • Heirs or beneficiaries receiving real estate

  • Real estate professionals preparing the property for sale

  • Courts and referees in contested estate cases


Our Appraisal Process

1. Consultation

We begin with a brief phone or email consultation to understand the property’s details, the purpose of the appraisal, and the effective date (the date of passing). We'll also discuss the timeline and access requirements.

2. Property Inspection

Where accessible, we conduct a detailed inspection of the home, noting layout, square footage, condition, luxury features (such as pools, home theaters, and guesthouses), and other value-impacting details.

If the property is tenant-occupied, inaccessible, or in probate hold, we offer desktop and exterior-only appraisal options with appropriate documentation.

3. Market Analysis and Research

We identify comparable sales from the valuation date and adjust for location, upgrades, view, and lot size. In rare or unique cases, we also reference sales from adjacent neighborhoods or prior sales of the subject property.

4. Report Completion and Delivery

The final certified report is delivered within five to seven business days, with rush service available within 48 hours upon request. Reports are delivered in PDF format and can be shared with attorneys, CPAs, fiduciaries, or courts as needed.


Frequently Asked Questions

Can I request a Date of Death Appraisal months or years after the date of passing?

Yes. These are called retrospective appraisals, and they’re commonly completed long after the death occurred. We use historic sales data and market conditions to determine accurate past value.

Is the appraisal accepted by the IRS and California probate courts?

Absolutely. Our appraisals are USPAP-compliant and meet IRS and court standards for use in estate tax filings, probate cases, and trust administration.

Can the same appraisal be used for tax filing and beneficiary settlement?

Yes. One appraisal report may serve multiple purposes as long as it was prepared with the appropriate scope of work and intended use. If you later plan to list the property, a current market appraisal may also be advisable.


Why Choose Pacific Home Appraisers for Pacific Palisades?

With over 5,000 appraisals completed across Southern California—including high-value estate and probate assignments—Pacific Home Appraisers is a trusted partner for families, attorneys, and fiduciaries in Pacific Palisades.

What Sets Us Apart:

  • Local expertise in Pacific Palisades’ luxury and coastal real estate market

  • Experience with high-net-worth estates, trusts, and probate cases

  • Reports accepted by IRS, probate courts, and legal professionals

  • Certified, USPAP-compliant valuations with quick turnaround

  • Rush delivery available within 48 hours upon request

We approach every appraisal with confidentiality, accuracy, and professionalism—especially during sensitive times.


Request a Certified Date of Death Appraisal in Pacific Palisades

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

If you're managing an estate or trust and need a Date of Death Appraisal in Pacific Palisades, contact Pacific Home Appraisers for accurate, court-ready valuations delivered with discretion and care.

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

We’re here to guide you through the estate valuation process with precision, professionalism, and respect.


Posted by Tony Kiani on April 17th, 2025 8:51 AMPost a Comment

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