Estate Appraisal for Georgia Probate: Date of Death Value and Form 706

When someone passes away, their estate must be valued for probate, tax, and asset-distribution purposes. A professional appraisal of real property is essential. This guide explains what an estate appraisal is, when it is required, how the valuation date works, and what to expect in Georgia probate.

What Is an Estate Appraisal?

An estate appraisal is a professional valuation of real property as of the date of death—the specific day the owner passed away. This is not a current market value; it is a retrospective appraisal estimating what the property was worth on that particular date, even if the appraisal is ordered weeks or months later.

The date-of-death value is critical for:

• Probate inventory: Georgia probate requires a complete inventory of the deceased's assets.
• Estate taxes: If the estate is large, the IRS requires Form 706 (Federal Estate Tax Return), which must include real property values as of the date of death.
• Stepped-up basis: The estate's cost basis in the property is "stepped up" to its fair market value on the date of death. Heirs receive that stepped-up basis, which affects future capital gains tax if they sell the property.
• Estate distribution: If heirs are receiving different assets (one gets the house, another gets cash or securities), the house must be valued fairly so the distribution is equitable.

Georgia Probate and Real Property Inventory

Georgia law requires that real property in the estate be included in the probate inventory with a value. Georgia Supreme Court rules allow the inventory value to come from:

1. An appraisal by a professional appraiser (preferred)
2. The most recent tax assessment (if it is recent and reasonable)
3. An agreed value between the estate representative and known heirs

For any property of significant value, or if there is any question about fairness, a professional appraisal is the safest approach. It provides documentation if questions arise later.

The Date-of-Death Valuation

The effective date of an estate appraisal is the date the person died, not the appraisal date. This creates a unique challenge: an appraiser may be valuing a property in January based on comparable sales from June–December of the previous year, estimating what that property was worth in June.

To do this correctly, an appraiser must:

• Research the market as it existed on the date of death (not current market conditions)
• Adjust comparable sales for market change between the date of death and the sales date
• Account for any property changes (improvements, damage, or deterioration) between the date of death and the inspection

For example: If someone died in January 2025, and the appraiser inspects the property in March 2025, the inspection may reveal new roof installed in February. The appraisal accounts for the fact that on January 1, the roof was in its previous condition (which affects value as of that date).

Form 706 and Federal Estate Tax

If the estate is over $13.61 million (2024 federal exemption; adjusted for inflation), Form 706 (Federal Estate Tax Return) must be filed with the IRS. Form 706 requires:

• Itemization of all assets in the estate, including real property
• Valuation date: Date of death (or the alternate valuation date, six months after death, if the estate chooses)
• Fair market value of each property
• Professional appraisals for real property (required if values exceed thresholds)

Note: Many Georgia estates do not owe federal estate tax due to the high exemption limit. However, if the estate is close to the threshold, or includes valuable real property, a professional appraisal may be necessary for Form 706.

Also, Georgia does not have a state estate tax, so the concern is federal only.

Stepped-Up Basis Explained

One of the most important reasons for a date-of-death appraisal is the stepped-up basis rule.

Scenario: A parent bought a house in 1985 for $75,000. The house is worth $450,000 when the parent dies in 2026. The parent's cost basis is $75,000.

Without stepped-up basis: If the heir sells the house later, they would owe capital gains tax on the gain of $375,000 ($450,000 sale price – $75,000 original cost).

With stepped-up basis: The heir's cost basis is "stepped up" to $450,000 (the date-of-death value). If the heir sells for $450,000 six months later, there is no capital gain, and no tax is owed.

This is a massive tax benefit. An accurate date-of-death appraisal documents the stepped-up basis value, protecting the heirs from IRS challenge. The appraisal provides evidence that the property's value on the date of death was $450,000, not more.

Estate Appraisal vs. Probate Appraisal

These terms are often used interchangeably. An estate appraisal is the professional valuation for the estate's purposes. Some Georgia probate courts use the term probate appraisal to refer to the court-ordered appraisal. They are the same thing: a professional valuation of date-of-death value.

When Is an Estate Appraisal Required?

You should order an estate appraisal if:

• Real property is in the estate and its value must be documented (almost always)
• The value is significant (over $50,000, or if any heirs may question fairness)
• Form 706 is being filed (federal estate tax return; appraisals required for real property)
• Estate taxes may be owed (the estate is large or the tax situation is complex)
• The heirs do not agree on value (an independent appraisal settles the question)
• The CPA or attorney recommends one (they often do for estates over $500,000)

Timing: When to Order an Estate Appraisal

Ideally, an appraisal is ordered within the first 60 days after death, while the immediate aftermath is still underway and the estate representative has time to coordinate.

Why soon?

• Probate inventory deadline: Georgia law requires the inventory to be filed within 30 days (extensions available), or within 90 days with court approval.
• Tax considerations: If Form 706 is needed, some filing deadlines are also time-sensitive.
• Heirs' peace of mind: An early appraisal settles the value question before emotion or family disagreement complicates things.

Appraisals can be ordered later, but early ordering removes that task from an already overwhelming process.

Cost of an Estate Appraisal

A residential estate appraisal in Georgia typically costs $500–$900, similar to a divorce appraisal. Costs depend on:

• Property type and complexity: Standard home ($500–$750); luxury, acreage, or unusual property ($800–$1,200)
• Market area: Urban/suburban with abundant sales ($500–$700); rural with few comparables ($700–$1,000)
• Access: If the property is occupied and accessible, standard fee. If the property is vacant or access is difficult, fees may be higher.

The estate typically pays the appraisal fee from estate assets.

What the Appraisal Report Includes

An estate appraisal report includes:

• Property description: Address, lot size, square footage, construction date, condition, recent improvements
• Market analysis: Overview of the neighborhood and comparable-sales market as it existed on the date of death
• Comparable-sales analysis: Three to five sales from around the date of death, adjusted for differences, supporting the value opinion
• Valuation approach: Market approach (comparable sales), cost approach, and income approach (if applicable)
• Date-of-death value: The appraiser's professional opinion of fair market value as of the date of death
• Appraiser certification: Signed statement that the appraisal is accurate and meets professional standards

The report is prepared for the estate representative, the heirs, the CPA, and potentially the IRS (on Form 706).

Retrospective vs. Current Appraisals

A retrospective appraisal (date-of-death) may differ from what the property is worth today. For example:

• Date of death (June 1, 2025): Property valued at $350,000
• Today (September 2025): Market has risen; similar homes sell for $365,000

Both values can be correct. The estate appraisal documents the June 1 value (for probate and tax purposes). The current value (if the heir wants to know for their own planning) is separate.

If the property will be sold, a current appraisal (or realtor CMA) is useful. For estate and tax purposes, the date-of-death appraisal is what matters.

Probate Court and Appraisals

In Georgia, most probate courts do not require a specific appraisal form. A professional appraisal report that estimates fair market value as of the date of death is sufficient. However, some courts may request that the appraiser be named in the probate filing, or may ask questions if the value seems unusual.

If the estate goes to court (contested will, objections to inventory, etc.), a professional appraisal is strong evidence of value and may be introduced as an exhibit.

Scott D.W. Wiley's Estate Appraisals

I provide professional, probate-ready appraisals for Georgia estates. Each appraisal is clearly dated to the date of death, supports the stepped-up basis for tax purposes, and is prepared for use on Form 706 or Georgia probate inventory.

I understand that estate situations are sensitive and time-sensitive. I prioritize quick turnaround while maintaining thorough analysis.

Request an Estate Appraisal

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FAQs: Estate Appraisals in Georgia Probate

Do I need an appraisal if the property is going to be sold anyway?

Not necessarily for probate purposes. If the inventory value is agreed upon by the heirs and the estate representative, an appraisal may not be required. However, if there is any question about fairness, or if Form 706 is being filed, an appraisal protects everyone by documenting the date-of-death value.

Can the probate court reject the appraisal value?

Unlikely, if the appraisal is professional and defensible. However, if heirs object to the value, the court may request a second appraisal or hear arguments. A well-reasoned appraisal backed by comparable sales is very difficult to challenge.

How long does an estate appraisal take?

Standard: 10–14 business days. The appraisal must be ordered, the property inspected, comparables researched, and the report written. Rush service is sometimes possible but may not be necessary if the probate timeline allows.

What if the property is out of state?

I appraise properties in Georgia. If the estate includes out-of-state property, you will need an appraiser licensed in that state. Georgia-based appraisers cannot appraise out-of-state properties.

Can the stepped-up basis be challenged by the IRS?

Yes, if the date-of-death value is considered too low. A professional appraisal backed by comparable sales and sound analysis is the best defense against IRS challenge. Without an appraisal, the IRS may assign its own value, which could be higher.

What if the heirs want to keep the property and don't plan to sell?

The stepped-up basis still matters. Even if the heirs do not plan to sell immediately, documenting the date-of-death value establishes their cost basis for future capital gains tax. If one heir eventually sells while another keeps it, both benefit from the stepped-up basis established on the date of death.

Does Georgia require Form 706 to be filed?

Only if the gross estate exceeds the federal exemption ($13.61 million in 2024). Many Georgia estates do not require Form 706. However, if in doubt, consult the estate's CPA or attorney.

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Ready to Get an Estate Appraisal?

If you are administering a Georgia estate and need a professional appraisal for probate inventory, Form 706, or stepped-up basis documentation, request an estate appraisal here. I'll provide a clear, defensible valuation dated to the date of death, supporting the estate's tax and probate needs.