An estate appraisal establishes the fair market value of real property for probate, federal estate tax reporting, or heir distribution purposes. Motto Appraisal Service produces USPAP-compliant, IRS-qualified estate appraisals throughout DFW — including retrospective date-of-death reports — typically delivered in 3-5 business days.
Probate Court Requirements for Real Estate in Texas
When a Texas estate goes through probate, the court requires a valuation of all real property. Texas probate proceedings are handled by county courts-at-law or statutory probate courts, depending on the county. In Tarrant County, Dallas County, and Denton County, estate proceedings regularly involve formal appraisals of residential real estate.
The executor or administrator of the estate has a fiduciary duty to correctly value estate assets. Using an informal estimate — a Zillow number, a neighbor's opinion, or a real estate agent's CMA — exposes the executor to personal liability if the valuation is later found to be inaccurate. A licensed appraisal from a state-certified appraiser provides the defensible, documented value that protects executors and satisfies court requirements.
Motto Appraisal Service works directly with estate attorneys and executors throughout Tarrant, Dallas, and Denton counties. Reports are formatted to meet probate court requirements and can be submitted as exhibits to probate filings.
Date-of-Death Retrospective Appraisals
When someone passes away, the relevant date for estate valuation is not today — it is the date of death. This is called a retrospective or effective-date appraisal. We establish value as of the date the owner died, using market data from that period to reflect what the property would have sold for on that specific date.
Retrospective appraisals require the same rigor as current-date appraisals, but depend on the availability of historical comparable sales data around the effective date. Texas property markets — particularly in growing DFW suburbs like Trophy Club, Keller, Southlake, and Frisco — have experienced significant value swings in recent years. A date-of-death value from 2020 may be substantially different from today's value, making the effective date critical.
We can complete retrospective appraisals for dates going back many years in most DFW submarkets. Contact us with the address and effective date for a feasibility confirmation.
IRS Estate Tax Appraisals and Form 706
Estates exceeding the federal exemption threshold (currently over $13 million per individual for 2024-2025) must file IRS Form 706 and report the fair market value of all estate assets. Real property must be valued by a qualified appraisal under Treasury Regulation 1.170A-17 and IRS Revenue Procedure 2001-38.
A qualified appraisal for IRS purposes must include: the date of the appraisal and the effective date of value, a description of the property, the valuation methodology used, the appraiser's qualifications, and a signed certification of independence. USPAP compliance is required. Luke Motto produces appraisals that meet these requirements.
Even below the federal exemption threshold, a qualified appraisal may be required for state estate tax purposes, or for purposes of establishing the step-up in basis for inherited property under Internal Revenue Code Section 1014. Consult your estate attorney or CPA about which filings apply to your situation.
Inherited Property Valuation and Step-Up in Basis
When property is inherited, the beneficiary's cost basis for tax purposes is stepped up (or stepped down) to the fair market value on the date of death. This has significant implications for future capital gains tax if the property is later sold. Documenting the step-up in basis with a qualified appraisal at the time of inheritance protects heirs from overpaying capital gains taxes years later.
For example: a DFW home purchased in 1995 for $120,000 that was worth $580,000 at the date of death in 2023 means the heir's basis is $580,000 — not $120,000. If the heir sells it three years later for $620,000, they owe capital gains only on the $40,000 gain — not on the entire $500,000 appreciation that occurred during the decedent's lifetime. A date-of-death appraisal is the IRS-recognized method of establishing that $580,000 figure.
What the Estate Appraisal Report Includes
- Complete USPAP-compliant appraisal report in PDF format
- Effective date clearly stated (current or retrospective date of death)
- Interior and exterior inspection (or desktop review with documented methodology for retrospective)
- Comparable sales grid with adjustments documented
- Market conditions analysis for the relevant DFW submarket
- Photographs of the subject property
- Signed appraiser certification meeting IRS qualified appraisal requirements
- Appraiser's qualifications and license information
Service Area for Estate Appraisals
Motto Appraisal Service covers all of Dallas County, Tarrant County, Denton County, Collin County, and Kaufman County for estate and probate appraisals. Primary cities include Fort Worth, Dallas, Arlington, Denton, Frisco, McKinney, Plano, Garland, Irving, Trophy Club, Roanoke, Keller, Southlake, Colleyville, Grapevine, and all surrounding communities.
Order an Estate or Probate Appraisal
USPAP-compliant, IRS-qualified. Serving Tarrant, Dallas, and Denton County. Standard delivery 3-5 business days.
Frequently Asked Questions
What is a date-of-death appraisal and when is it required?
A date-of-death appraisal establishes the fair market value of real property as of the date the owner died. It is required for federal estate tax returns (Form 706), probate court filings, step-up in basis calculations for inherited property, and distribution between heirs. The IRS requires a qualified appraisal from a qualified appraiser meeting Treasury Regulation requirements.
How far back can a retrospective estate appraisal go?
There is no absolute cutoff, but the further back the effective date, the more important it is that market data from that period is available. We can typically complete retrospective appraisals going back 5-10 years or more if sufficient comparable sales data existed in that market during that period. Contact us with the effective date and property address for a feasibility assessment.
Does the estate appraisal need to be USPAP-compliant for the IRS?
Yes. The IRS requires that estate tax appraisals meet the requirements of Treasury Regulation 1.170A-17, which mandates a qualified appraisal produced by a qualified appraiser. USPAP compliance is a component of meeting this standard. The appraisal must include the effective date, a description of the property, the valuation method used, the appraiser's qualifications, and a signed certification.
Can one appraisal be used for both probate court and the IRS?
Generally yes, if the appraisal meets both the court's requirements and the IRS qualified appraisal standard. We produce reports designed to satisfy both simultaneously. Discuss your specific situation with your probate attorney and tax advisor to confirm.
What counties do you serve for estate appraisals in DFW?
Motto Appraisal Service serves Dallas County, Tarrant County, Denton County, Collin County, and Kaufman County for estate and probate appraisals. This covers communities throughout the DFW metroplex including Fort Worth, Dallas, Denton, Frisco, McKinney, Plano, Trophy Club, Keller, Southlake, and surrounding areas.
How long does the probate appraisal process take?
Standard delivery is 3-5 business days from the property inspection. For estate situations where access is available immediately, we often complete inspections within 1-2 days of the order. Rush delivery is available if the estate has a court filing deadline. Call (817) 217-4375 to discuss your timeline.
Who orders the estate appraisal — the executor, the attorney, or an heir?
Any of these parties can order the appraisal. Most commonly, the estate's executor (or administrator) orders it, often at the direction of the probate attorney. The fee is typically paid from estate assets. We can work directly with the estate's attorney or CPA if preferred.
Can the estate appraisal be used if heirs disagree on value?
Yes. A licensed appraisal from an independent appraiser is the most credible resolution when heirs disagree. If one party contests the value, they may commission their own appraisal, but a single neutral report often resolves disputes before they escalate. The report is documentable, signed, and defensible in probate court.