Who appraises what in California probate
The Probate Code provides that the personal representative, a probate referee or an independent expert appraises inventory property as the chapter provides. The personal representative appraises money, cash items and similar property, and a probate referee designated by the court usually appraises the other property in the inventory. Statutory exceptions exist, and a court may waive the referee's appraisal for good cause. Hiring a private appraiser does not by itself satisfy the court inventory requirement. Before the hearing on final distribution, the personal representative or an interested person may file a written objection to an appraisal, and the objector has the burden of proof.
Where an independent appraisal fits
An independent appraisal from an appraiser such as Randy M. Sonns is a separate engagement. Owners and trustees use one when they need a documented value for a purpose the referee's appraisal does not serve, such as a trust, a sale or a family discussion. Hiring one does not by itself satisfy the court inventory requirement in a court-supervised probate. The estate's attorney can say whether an exception or a court waiver applies.
Official guidance
Why the date matters
Many estate decisions turn on the value at the date of death. The Internal Revenue Service says the tax basis of inherited property is generally its fair market value on that date, subject to exceptions and elections. For example, an executor may elect an alternate valuation date on Form 706 only if the election reduces both the gross estate and the sum of the estate tax and any generation-skipping transfer tax payable, after credits. Property disposed of within six months of death is valued on its disposition date, and other property is valued six months after death, subject to statutory rules. A tax adviser can say which value applies.
Have ready
What to prepare
Checklist
- The property address and access arrangements.
- The effective date and who will rely on the report.
- Property records the personal representative or trustee holds.
- Any earlier appraisal, survey or inspection report.
- A dated list of improvements and repairs.
What the report will not do
It will not give legal or tax advice, and it will not say how a court will treat the value. For the service, see estate appraisal in Los Angeles, and for the definition read what is a home appraisal. For method, see how appraisers determine home value, and for quick answers see the appraisal FAQ.
Frequently asked questions
Do I need a probate referee if I hire an appraiser?
In a court-supervised probate the Probate Code provides for the referee's role. Hiring a private appraiser does not by itself satisfy the court inventory requirement, and any exception or court waiver is for the estate's attorney to determine.
Who orders the independent appraisal?
The executor, trustee or an heir, often on the attorney's advice.
Can a past date be used?
Yes, a retrospective effective date is possible. Tell the appraiser the date.
What if heirs disagree with an appraisal?
The Probate Code lets an interested person file a written objection before the hearing on final distribution. Ask the attorney.