Stepped-up basis
Property that passes at death generally takes a new tax basis equal to its fair market value on the date of death. The appraisal documents that basis for when the home is sold. Ask your CPA how it applies.
Trust appraisal in Sacramento for successor trustees
When the person who created a trust dies, the trustee usually needs one number first: what the home was worth on the date of death. A trust administration appraisal by a licensed residential appraiser gives the trustee a documented, independent value for the stepped-up basis, for dividing the estate, and for the trust accounting.
BREA licensed
License AL3008584, active through 2028
$1,000,000 E&O insured
Errors & omissions coverage in force
Valued as of the date of death
Effective date set to the date you need
Handled personally
Direct contact with the appraiser throughout
In plain terms
What a trust administration appraisal is
It is a retrospective appraisal ordered by the successor trustee. The report is written now, but its effective date is the date the trust-maker died. It describes what the home would have sold for in the market as it stood on that date, not what it would sell for today.
The distinction matters. If the home has been sitting for a year while the family sorts things out, today’s market and the date-of-death market can differ, and only the second figure is the one the trust needs. The analysis is built from sales and conditions of that time. Waiting is workable, but records and memories fade, so order it before the tax return or sale if you can.
The same report works for any beneficiary, the trust’s attorney and the CPA preparing the returns. Because it comes from someone with no stake in who keeps the house, it is also a fair starting point when family members disagree.
When it is needed
What a trustee uses the value for
Most trusts need the number for at least two of these.
Dividing or distributing
When the home is sold and the proceeds split, or distributed in kind to a beneficiary, everyone should be working from the same independent figure.
Buying out a sibling
One beneficiary keeping the house and paying the others is the most common family arrangement. A neutral appraisal gives the buyout a starting point nobody picked for their own benefit.
The trust accounting
Trustees owe beneficiaries information and accountings. A documented date-of-death value is the usual way to show what the home was worth when the trustee took over.
More on stepped-up basis. Under IRC section 1014, property that passes from a decedent generally takes a new basis equal to its fair market value on the date of death. A revocable trust becomes irrevocable at death, and its assets are generally treated as passing from the decedent. The appraisal documents that basis for when the home is sold. In California, a surviving spouse’s half of community property can also be stepped up. Ask your CPA how this applies.
Trust versus probate
Why trusts generally do not use the probate referee
In California, when an estate goes through formal probate, the personal representative files an Inventory and Appraisal with the court. The Probate Code requires the property in that inventory to be appraised by the personal representative, a probate referee or an independent expert as the chapter provides (Probate Code section 8900). The personal representative appraises cash-type items such as bank accounts (section 8901), and the court-designated probate referee appraises all other property in the inventory (section 8902). A court can waive the referee for good cause (section 8903).
A trust administered outside of court is different. There is no court inventory, so there is no probate referee. The successor trustee manages the property privately, and an independent appraisal is the practical way to get a defensible value.
Be clear about which situation you are in
- The home is titled in the trust: a referee is generally not involved, and this page applies.
- The home is not in the trust and goes through a formal probate: the court process controls the value of that property, and we do not replace the probate referee.
- Some of the estate is in probate and the home is in the trust: they run separately.
- You are unsure how the home is titled: the trust’s attorney, or the recorded deed, will answer it.
We do not act as a probate referee. If you are unsure which situation applies, a call is free.
While the owner is living
Funding a trust and estate planning
Most people do not need an appraisal to put a home into their own revocable living trust. That transfer is generally not a change in ownership for property tax purposes (Revenue and Taxation Code section 62).
An appraisal on a current date is useful for gifts, transfers to an irrevocable trust, equalizing what children will receive, and planning a buyout between heirs. Your attorney and CPA decide what is required.
Parent to child
Proposition 19 and the family home
Since February 16, 2021, Proposition 19 has limited the property tax exclusion for parent-child transfers. In general, it covers a family home that was the parent’s principal residence and becomes the child’s, subject to a value limit. The child must also make the home their principal residence, generally by claiming the homeowners’ exemption within one year. The value on the transfer date is compared with the limit.
See our Prop 19 appraisal page for how an appraisal fits in, and the State Board of Equalization’s Prop 19 page for the rules.
What to have ready
What successor trustees should gather
- The date of death and the property address.
- A copy of the trust, or at least its name, date and the trustee’s contact details.
- The recorded deed showing the home is in the trust, if you have it.
- Who will receive the report: attorney, CPA, beneficiaries.
- Access arrangements: who holds the keys and whether anyone lives there now.
- Photos, repair records or permits from around the date of death, and a note of anything done since.
In Sacramento County, a Change in Ownership Statement, Death of Real Property Owner (form BOE-502-D) generally goes to the County Assessor within 150 days of the death (Revenue and Taxation Code section 480(b)), even when the home was in a trust. The trust deed itself is recorded with the Sacramento County Clerk/Recorder. Confirm timing with the trust’s attorney.
If the home has been renovated, rented, damaged or sold since the death, the report values it as it was on the effective date and states clearly what could not be confirmed.
Cost and turnaround
What it costs and how long it takes
A typical single-family home or condo is $400 to $500. Larger, rural, multi-unit or unusual properties are quoted individually. Additional effective dates, rush requests and court testimony are quoted separately, and you see the quote before any work starts.
The report usually arrives 3 to 7 business days after the inspection. Because these appraisals are historical, the quote will say if more time is likely.
We cover 19 Northern California counties centered on Sacramento; see the service area. For other estate situations, see our date-of-death appraisal page. If the same family is also dividing property in a separation, see divorce appraisals.
Common questions
Frequently asked questions
Does a trust need an appraisal when the person who created it dies?
Not by law in most cases, but the successor trustee almost always needs a documented date-of-death value for the home. It sets the tax basis for the beneficiaries, gives a fair figure for dividing or buying out, and supports the trustee's accounting to beneficiaries. A large estate that must file a federal estate tax return (Form 706) also has to report values to the beneficiaries, so ask the estate's attorney.
What is a stepped-up basis?
Under federal law, property inherited from a person who has died generally takes a tax basis equal to its fair market value on the date of death instead of what the decedent paid. If the home is sold later, the taxable gain is measured from that basis. Your CPA determines how it applies in your case.
Does a living trust in California use a probate referee?
No. A probate referee is part of the court's inventory process in a formal probate. A trust administered outside of court does not file a court inventory, so there is no referee. Property that does go through probate is a different matter, and we do not replace the referee there.
Can the trustee order the appraisal, or do all beneficiaries have to agree?
The successor trustee can generally order it as part of administering the trust, and sharing the report with the beneficiaries is common. Whether the trust instrument requires anything more is a question for the trust's attorney.
Do I need an appraisal to move my home into my own living trust?
Usually not. Transferring a home into your own revocable trust is not normally treated as a change in ownership for property tax, and no value is needed to sign the deed. An appraisal helps in other cases, such as gifts, equalizing shares among children, or a transfer to an irrevocable trust.
What about Proposition 19 when a home passes from parent to child?
Prop 19 changed the property tax rules for parent-child transfers, and the value of the home on the transfer date matters to the calculation. The child must also make the home their principal residence, generally by claiming the homeowners' exemption within one year. We explain this on our Prop 19 page, and the county assessor and the trust's attorney decide how it applies.
How much does a trust appraisal cost and how long does it take?
A typical single-family home or condo is $400 to $500, and larger, rural, multi-unit or unusual properties are quoted individually. The report usually arrives 3 to 7 business days after the inspection.
Administering a trust?
Send the property address and the date of death for a quote, or call to talk through what the trust needs.
Important information about this service
Valley-Wide Appraisal Services provides independent real estate appraisal services only. Daniel R. Nelson is a licensed residential real estate appraiser, and is not an attorney, CPA, tax advisor, or estate planner. Nothing on this page is legal or tax advice, and it should not be relied on as a substitute for advice from the trust’s own professionals.
Valley-Wide Appraisal Services does not prepare or file tax returns, does not represent anyone before the Internal Revenue Service or any court, does not serve as a court-appointed Probate Referee, and does not guarantee any particular tax treatment, valuation outcome, or saving. How a value is used, reported or accepted rests with the trust’s professionals and the relevant authority.
Trust, probate and property tax rules change and depend on the facts. Confirm what your situation requires with the trust’s attorney, its CPA, or the county assessor.