What this appraisal is for
It gives an estate plan a number to work from before anything is signed.
Your attorney may be funding a trust, planning a gift, or moving a property to the next generation. Each of those moves value, and the plan is only as good as the value it assumes.
The effective date is today, or a date your attorney names. That is the difference from the other two estate-related assignments.
How it differs from estate and gift tax appraisals
| Assignment | Effective date | When it is ordered |
|---|---|---|
| Estate planning | Today, or a date counsel names | Before the plan is carried out |
| Gift tax | The date of the gift | After the gift, to support Form 709 |
| Estate and date of death | The date of death | After the death, for the executor |
If the gift has already been made, you need the gift tax appraisal. If the owner has died, you need the date-of-death appraisal. This page is for the stage before either.
When a value matters
The plan moves value to someone else. That is the test.
An irrevocable trust. Putting a house into a trust you cannot take back is usually a completed gift, and the value supports the return your accountant files.
A gift of a share. Parents often give children an interest in the house over several years. Each share needs a value, and a share is not a simple fraction of the whole.
A sale to family. A price below market value can be partly a gift. The appraisal shows where market value actually sits.
Equalizing among children. One child takes the house and the others take other assets. A current value is what makes the split even.
The federal figures, briefly
For 2026 the federal basic exclusion amount is $15,000,000 per person. The annual gift exclusion is $19,000 per recipient.
A gift above the annual exclusion generally needs a return even when no tax is due. Whether yours does is your accountant’s call.
Those figures change every year. Check the current ones with your accountant.
Where New Jersey comes into it
New Jersey has no gift tax, and its estate tax does not apply to deaths on or after January 1, 2018.
The inheritance tax remains. It depends on who receives the property, and it reaches back into lifetime planning in two ways.
First, transfers made within three years of death are presumed made in contemplation of death. They are reported at their value on the date of death.
Second, deeding the house to a relative while you keep living there is treated as taking effect at death. There is no look-back limit for that kind of transfer.
So a planning value today and a date-of-death value later can both end up mattering. Your attorney will know whether that applies to your plan.
The written report
A written report with the effective date counsel specifies, a market value conclusion, and the comparable sales and adjustments explained.
It states exactly what interest was valued and carries a signed USPAP certification. Delivered to you and, on written instruction, to your attorney or accountant.
Fee and turnaround are quoted in writing before any work begins.
This page describes appraisal practice. It is not legal or tax advice. The design of an estate plan, and whether a return is needed, belong with your attorney and accountant.
New Jersey specifics
- New Jersey has no gift tax, and its estate tax does not apply to deaths on or after January 1, 2018. The New Jersey transfer inheritance tax remains, and it depends on who receives the property.
- For the inheritance tax, transfers made within three years of death are presumed to be made in contemplation of death, and are reported at their market value on the date of death.
- Deeding the house to a relative while you keep living in it is treated as taking effect at death for the inheritance tax, however long ago the deed was signed. There is no look-back limit for that kind of transfer.
What you receive
- Appraisal report with an effective date of today or the date counsel specifies
- Market value conclusion with the comparable sales and adjustments explained
- A clear statement of the interest valued: the whole property, or a fractional share
- Signed USPAP certification
- Digital delivery to you and, on written instruction, to your attorney or accountant
What we need from you
- The property address, or the block and lot
- What the plan is: a trust, a gift, a sale to family, or a mix
- The effective date your attorney wants, or confirmation that it is today
- Whether the whole property or a share is moving, and to whom
- Access for an interior inspection