A probate appraisal is the formal value of the home on the day the owner passed. It drives the inventory, the stepped-up tax basis, and the floor for any later sale. The probate referee does the work — my job is to make sure they have what they need.
When probate is filed, the court assigns a probate referee — an appraiser appointed by the State Controller’s office to value non-cash estate assets. Real estate, jewelry, business interests, art. The referee’s value goes onto the Inventory & Appraisal (DE-160).
Their fee is set by statute: 1/10 of 1% (0.1%) of the appraised value, plus mileage and basic expenses, with a $75 minimum and $10,000 maximum per estate. Paid out of estate funds at closing or final distribution.
What surprises people: the referee usually doesn’t enter the home. They appraise from public records, comps, and what they can see from the curb. If the home is in poor condition, that won’t show in their value unless someone documents it.
That documentation is most of what I provide.
Filed within 120 days of Letters. Establishes what the estate is worth. The court works from this number for every subsequent decision.
For federal capital-gains, the heirs’ basis is the date-of-death value — not what the decedent paid. A higher value here means less gain (and less tax) on a later sale.
Probate Code §10810 fees are calculated on the gross value of the estate. Higher inventory value → higher statutory fees. (Worth knowing — not a reason to under-value, but a reason to be accurate.)
In a limited-authority sale, the home must sell for at least 90% of the re-appraised value. If the referee’s number is too high, you’ll fail to find a buyer at the floor.
There’s no fee for this when I’m involved in the eventual sale. If you’d like an opinion of value before deciding whether to list, that’s part of the free consultation.
For trust sales and small-estate procedures — yes, and it’s often the better choice. A licensed California appraiser does a full interior inspection and produces a USPAP-compliant report your CPA will accept for the stepped-up basis. The probate referee is only required when the case goes through formal probate.
You can request a re-appraisal, especially before a limited-authority sale (the law actually requires a re-appraisal within one year of the intended sale date). If the referee’s number is materially wrong, document it with comps, photos, contractor bids for needed repairs, and submit through your attorney.
Typically 30–60 days from when the referee receives the assignment from the court. The total Inventory & Appraisal must be filed within 120 days of Letters, so we have some runway, but it’s not unlimited.
For limited-authority sales, yes — the law requires the appraisal to be no more than one year old at the time of the intended sale. For full-authority sales, the original date-of-death appraisal stays on the inventory and the market sets the actual sale price.