Date of Death and Alternate Valuation Date: What to Know
Dealing with the loss of a loved one is never easy. On top of the emotional toll, there are many financial and legal matters to sort out.
Knowing your options can help ease the burden during a tough time.
One major part of settling an estate is figuring out how much your loved one’s property is worth. This process is called a date of death valuation, and it helps determine the value of real estate and other assets at the time of death. Another option to consider is the alternate valuation date, which lets you revalue the estate’s assets six months later.
Let’s explore these two options so you can make the right choice for your family and situation.
What is a Date of Death Valuation?
A date of death valuation is a snapshot of how much a person’s home or property was worth on the day they died.
This value is important for legal procedures like settling the estate, figuring out taxes, and making sure everything is divided fairly among heirs and/or beneficiaries.
What is an Alternate Valuation Date?
An alternate valuation date gives you the option to value a deceased loved one’s estate six months after they pass away, rather than using the date of death. This option can be helpful if the market fluctuates significantly during those six months.
This option can be used to save on taxes. Say your loved one’s house is worth $500,000 when they died. Six months later, the housing market has dropped and the house is only worth $450,000. By electing the alternate valuation date, estate taxes will be less because they’re based on the lower value.
AVD is only an option if there’s a decrease in the estate value and the estate tax liability.
Date of Death vs. Alternate Valuation Date – How to Choose?
It all comes down to what has happened to the value of the property in the six months following the person’s death. In short, use the date of death valuation if the property is stable or rising in value and opt for the alternate valuation date if the real estate market drops after death to reduce taxes.
When considering whether to use a date of death valuation or alternate valuation, work with an expert to review the overall financial situation of the estate.
How Our Real Estate Valuation Services Can Help
Accurate real estate valuations are crucial for both legal and financial reasons when handling a loved one’s estate. At Akrivis, we strive to make the process easier and less stressful for you and your family with fast, accurate valuations and hybrid appraisals.
Expertise in Estate Valuations
We’re professionals with years of experience providing real estate valuations for residential, commercial, and agricultural properties. Whether you need a date of death valuation or an alternate valuation date, we’ll provide accurate, IRS-compliant reports that meet necessary legal and tax requirements.
Navigating Tax Implications
Understanding date of death valuations and alternate valuation dates can be confusing, especially when taxes are involved. We’re here to walk you through the process and understand both options. We’ll discuss how the real estate market has changed and help you maximize benefits so you don’t pay more in taxes than necessary.
Seamless Process
With so much going on during this difficult time, we strive to make sure the valuation process is smooth and stress-free. We make it easy to manage your account online and provide real estate valuation reports in five business days or less. Our efficient process helps you stay on track so you can balance all communication, minimize delays, and meet all legal requirements.
Work With Akrivis
Whether you need help with a date of death valuation or an alternate valuation date, we’re here to help you weigh your options and make decisions with confidence. When you work with Akrivis, you’re getting more than just a real estate valuation. You’re getting expert advice, compassionate support, and a team dedicated to making a challenging process just a little bit easier.