Disclaimer: This guide is general information, not legal, tax, or financial advice. Tax and probate rules are complex and vary by situation and state. Consult a CPA or estate attorney about what your estate needs.
TL;DR
- Match the appraiser to the property and the purpose. Personal property (art, jewelry, antiques, collectibles) and real estate are different specialties, and an appraisal for taxes, probate, insurance, or a sale may need different things.
- Look for recognized credentials. Major personal property appraiser organizations include the American Society of Appraisers (ASA), the International Society of Appraisers (ISA), and the Appraisers Association of America (AAA).
- USPAP matters for tax appraisals. The IRS says a qualified appraisal for donated property must follow the substance and principles of the Uniform Standards of Professional Appraisal Practice (USPAP).
- Date-of-death value is often key. The IRS says the basis of inherited property is generally its fair market value on the date of death (or an alternate valuation date if elected on an estate tax return).
- Avoid percentage-based fees for tax appraisals. IRS Form 8283 instructions state appraisal fees cannot be based on a percentage of the appraised value for qualified appraisals.
Find credentialed professionals in our appraisers directory.
Why do estates need appraisals?
Short answer: To establish fair market value for taxes, court filings, fair distribution among heirs, insurance, charitable donations, or deciding what to sell.
Common reasons:
– Tax basis for heirs. The IRS explains that the basis of inherited property is generally its fair market value on the date of the decedent’s death, or on the alternate valuation date if the executor files Form 706 and elects it. Heirs use that basis to figure gain or loss if they later sell.
– Estate tax filings. If an estate tax return is required, values must be reported. Ask a CPA whether your estate needs one.
– Probate inventories. In California, for example, the personal representative files an Inventory and Appraisal (form DE-160) and usually contacts a probate referee to value non-cash assets (California Courts Self-Help).
– Dividing property fairly among beneficiaries.
– Charitable donations of valuable items (see IRS rules below).
– Deciding how to sell — estate sale, auction, consignment, or private sale.
Rules vary by state. California is used as an example. Check your state court’s official pages, e.g., California, Florida, Texas, Illinois, or the DOJ’s court resources by state.
What types of appraisals might an estate need?
Short answer: The most common are date-of-death (fair market value) appraisals, appraisals for charitable donations, and appraisals to help decide how to sell. Insurance and real estate appraisals are separate needs.
Date-of-death (fair market value) appraisal
Values property as of the date of death, which the IRS says generally sets heirs’ basis. The IRS defines fair market value (in its Form 8283 instructions) as “the price a willing, knowledgeable buyer would pay a willing, knowledgeable seller when neither has to buy or sell.”
Alternate valuation date appraisal
Used only if the executor files an estate tax return (Form 706) and elects alternate valuation, according to the IRS. Ask a CPA whether this applies.
IRS qualified appraisal for donated property
If the estate or heirs donate an item (or group of similar items) and claim a deduction of more than $5,000, the IRS Form 8283 instructions require a written qualified appraisal by a qualified appraiser. Key IRS requirements include:
– Prepared under the substance and principles of USPAP
– Signed and dated no earlier than 60 days before the contribution date, and received before the return’s due date (including extensions)
– Fees not based on a percentage of appraised value
– For art with a deduction of $20,000 or more, a complete signed copy of the appraisal must be attached to the return
Real estate appraisal
A home is valued by a licensed or certified real estate appraiser — a different specialty from personal property. A probate realtor can provide market analysis, but that isn’t the same as a formal appraisal.
Insurance or “replacement value” appraisal
Values items at what it would cost to replace them, which typically differs from fair market value. Make sure the appraisal type matches your purpose.
What credentials should an estate appraiser have?
Short answer: A designation from a recognized appraiser organization in the relevant specialty, USPAP education, and documented experience with the type of property.
American Society of Appraisers (ASA)
According to ASA, it offers the Accredited Member (AM) designation (at least two years of full-time appraisal experience) and the Accredited Senior Appraiser (ASA) designation (at least five years of full-time appraisal experience), each also requiring the discipline’s education and report requirements. ASA says personal property candidates must pass an ethics exam and a 15-hour USPAP course and exam.
International Society of Appraisers (ISA)
ISA describes three levels:
– Member – ISA: core ISA training, three or more years of market-related experience, and the 15-hour USPAP course
– Accredited Member – ISA AM: a declared specialty and 700 documented hours of appraisal-related experience
– Certified Member – ISA CAPP: 900 documented hours of appraisal reporting and passing the CAPP exam
Appraisers Association of America (AAA)
AAA offers Accredited Member and Certified Member levels; ASA recognizes both as equivalent education when bridging between organizations. Check AAA directly for current requirements.
What does the IRS mean by a “qualified appraiser”?
Per IRS Form 8283 instructions, a qualified appraiser is an individual who:
1. Has a recognized designation from a generally recognized professional appraiser organization for the type of property, or meets minimum education requirements and has two or more years of experience valuing that type of property;
2. Regularly prepares appraisals for pay;
3. Declares in the appraisal that they are qualified to appraise that type of property; and
4. States their education and experience in the appraisal.
Generally, a party to the transaction in which the property was acquired can’t serve as the qualified appraiser (with a limited exception described by the IRS).
What is USPAP?
USPAP is the Uniform Standards of Professional Appraisal Practice, developed by the Appraisal Standards Board of The Appraisal Foundation. The IRS requires qualified appraisals for donated property to follow its substance and principles.
What questions should you ask an appraiser?
Short answer: Confirm credentials, specialty, USPAP compliance, fee structure, independence, and what the report will include.
- What are your designations, and in which specialty? Can I verify them in the organization’s directory?
- Are you current on USPAP education?
- Have you appraised items like ours (e.g., jewelry, fine art, firearms, coins)?
- What type of value will you report (fair market value, replacement value)? As of what date?
- Will the report meet IRS requirements if it’s used for taxes or a donation?
- How do you charge — hourly, flat, or per item? (Avoid percentage-of-value fees, which the IRS disallows for qualified appraisals.)
- Do you buy, sell, or broker items you appraise? How do you handle conflicts of interest?
- How long until we receive the written report?
What are red flags when hiring an appraiser?
Short answer: Percentage-based fees, offers to buy what they appraise, no written report, or no verifiable credentials.
- Fees tied to the appraised value
- Offering to buy items right after valuing them
- Verbal-only valuations when you need documentation
- Credentials you can’t verify
- A specialty that doesn’t match your items
When should you get the appraisal?
Short answer: Before selling, distributing, or donating anything of potential value.
A typical order:
1. Confirm who has authority (executor, administrator, or trustee).
2. Secure documents and keepsakes.
3. Appraise valuables.
4. Distribute, then sell through an estate sale company or other channel — see How to Choose an Estate Sale Company.
5. Donate and clear out what’s left — see Estate Cleanout vs. Junk Removal.
For the broader timeline, see What to Do After a Loved One Dies. If a surviving parent is downsizing, a senior move organizer can help identify which items to appraise.
Frequently asked questions
Do I need an appraisal for every item in the estate?
No. Appraisals are typically used for items of significant or uncertain value, or when taxes, court filings, or fair distribution require documented values.
What’s a date-of-death appraisal?
An appraisal of fair market value as of the date of death. The IRS says this value generally sets the heirs’ basis in inherited property.
What is an IRS qualified appraisal?
A written appraisal by a qualified appraiser, prepared under USPAP principles and meeting IRS regulations. It’s required for many donated items or groups of similar items with a claimed deduction over $5,000.
What do ASA, ISA, and AAA mean?
They’re major professional appraiser organizations: the American Society of Appraisers, the International Society of Appraisers, and the Appraisers Association of America. Each offers credentials with education and experience requirements.
Can an estate sale company appraise items?
Some offer valuations, but an independent appraiser avoids conflicts with sale commissions. For tax purposes, the appraiser must meet IRS qualified appraiser requirements.
Can the appraiser charge a percentage of the value?
Not for an IRS qualified appraisal — the IRS says fees can’t be based on a percentage of the appraised value. Prefer hourly or flat fees in general.
Is a real estate appraiser the same as a personal property appraiser?
No. They’re different specialties with different credentials.
What is a probate referee?
In California, a probate referee is an appraiser the personal representative usually contacts to value non-cash assets in probate. Other states have different procedures.
Sources
- IRS — Instructions for Form 8283 (qualified appraisal and qualified appraiser rules): https://www.irs.gov/instructions/i8283
- IRS — Gifts & Inheritances FAQ (basis of inherited property): https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances
- IRS — Publication 561, Determining the Value of Donated Property: https://www.irs.gov/publications/p561
- IRS — Publication 559, Survivors, Executors, and Administrators: https://www.irs.gov/publications/p559
- IRS — Publication 551, Basis of Assets: https://www.irs.gov/publications/p551
- The Appraisal Foundation — USPAP: https://www.appraisalfoundation.org/imis/TAF/Standards/Appraisal_Standards/Uniform_Standards_of_Professional_Appraisal_Practice/TAF/USPAP.aspx
- American Society of Appraisers — Professional Credentials: https://www.appraisers.org/credentials/start-here-asa’s-professional-credentials
- American Society of Appraisers — Become a Personal Property Appraiser: https://www.appraisers.org/disciplines/personal-property/become-a-pp-appraiser
- American Society of Appraisers — Education Equivalency (bridging): https://www.appraisers.org/credentials/personal-property/am-and-asa/education-equivalency-program
- International Society of Appraisers — Credentialing: https://www.isa-appraisers.org/credentialing
- Appraisers Association of America: https://www.appraisersassociation.org/
- California Courts Self-Help — Overview of formal probate: https://selfhelp.courts.ca.gov/probate/formal-probate
- Florida Courts — Probate: https://www.flcourts.gov/Courts-System/florida-courts-help/other-resources/probate
- Texas Judicial Branch — Rules & Forms: https://www.txcourts.gov/forms.aspx
- Office of the Illinois Courts — Self Help: https://www.illinoiscourts.gov/self-help/
- U.S. Department of Justice — Court Resources by State: https://www.justice.gov/jmd/ls/state