Best documented with a retrospective appraisal from a licensed appraiser. Executors may alternatively elect the alternate valuation date (six months after death) if doing so reduces overall estate tax — but this election affects all estate assets, not just real estate.
Related terms
Step-Up in Basis
A federal tax rule (IRC §1014) that resets an inherited asset's cost basis to its fair market value on the date of the original owner's death.
Probate
The court-supervised process of validating a will, paying the deceased's debts, and transferring remaining assets to heirs.
Inheritance Tax
A state-level tax paid by the heir on the value of property received from a deceased person.