Date of Death Appraisals
for Hawaiʻi Estates & Trusts
When an estate or trust holds real property, its value as of the date of death sets any tax owed, the beneficiaries' new basis and how assets are divided. The Benavente Group prepares date of death, probate, estate and trust appraisals for executors, trustees and estate attorneys across Hawaiʻi, written to stand up to IRS and Department of Taxation review.
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One Team for Every Asset
in the Estate
We understand that estate work comes at a difficult time for families. Our role is to make one part of it straightforward: a clear, well-supported value, delivered on schedule to the attorney or representative handling the estate. Our principals hold both the MAI designation for commercial property and the SRA designation for residential property. So an estate holding a family home, a rental building and a parcel of land can be valued by one team, on one consistent basis.
Executors, Trustees
and Estate Counsel
| Client | How we help |
|---|---|
| 01Estate and trust attorneys | How we helpAppraisals timed to filing deadlines, delivered to counsel. |
| 02Executors and personal representatives | How we helpClear values for the estate inventory, administration and distribution. |
| 03Trustees | How we helpValuations for trust funding, distribution, division and periodic reporting. |
| 04CPAs and family offices | How we helpSupport for estate and gift tax returns and basis records. |
Estate attorneys work to statutory deadlines and need an appraiser they can rely on. We keep communication with counsel direct and timely. We flag issues early, such as a lease that affects value, an unrecorded easement or a fractional interest. And we deliver a report counsel can file with confidence.
Appraisals for Every
Stage of an Estate
| Assignment | When it's needed |
|---|---|
| Date of death appraisal | When it's neededRetrospective value as of the decedent's death, for estate tax and basis |
| Probate appraisal | When it's neededFair market value for the estate inventory and court administration |
| Alternate valuation date | When it's neededValue six months after death, when the estate elects it |
| Trust funding and distribution | When it's neededValues when property moves into or out of a trust |
| Gift appraisal | When it's neededValue of real property gifted during life |
| Fractional interest appraisal | When it's neededValue of a partial or undivided interest, such as a share in family land |
Probate Appraisal and the
Hawaiʻi Estate Inventory
Under HRS §560:3-706, a personal representative must prepare an inventory of the decedent's property within three months of appointment. Each item is listed at its fair market value as of the date of death. Real estate is often the largest and hardest item to value.
HRS §560:3-707 allows the personal representative to employ a qualified and disinterested appraiser for any asset whose value may be in reasonable doubt, and the appraiser's name and address appear on the inventory. As independent, credentialed appraisers, we provide that support for estates holding Hawaiʻi real property. Our guide to probate real estate appraisal explains the process.
Every Kind of Property
an Estate May Hold
- Family homes and condominiums, including luxury and oceanfront residences
- Rental property, from single-family rentals to apartment buildings
- Commercial property, including office, retail and industrial buildings held by a family or trust
- Leasehold and leased fee interests, including homes on leased land and land held under ground lease
- Agricultural and ranch land on any island
- Undivided family land, including kuleana parcels shared among many heirs
- Property in Guam, Saipan and other Pacific islands held by Hawaiʻi residents
Market Value as of
the Date of Death
Not what the property is worth today, but what it would have sold for on the day the decedent died.
A date of death appraisal is a retrospective appraisal. The question is not what the property is worth today, but what it would have sold for on the day the decedent died. Sometimes the appraisal is ordered months after the death, or even years later when an estate is reopened. So we use only market evidence that would have been known on that date. Sales, listings and market conditions after the date of death are generally excluded, unless they shed light on value at the date of death itself.
We also document the property's condition as of the date of death. If the property has been renovated, damaged or cleared since, we rely on photographs, records and interviews to reconstruct its earlier condition. That documentation is essential if the value is later questioned.
One Value, Several
Consequences
The date of death value does several jobs at once.
- 01
Federal estate tax
The date of death value sets any federal estate tax owed.
- 02
Hawaiʻi estate tax
Hawaiʻi imposes its own estate tax separately.
- 03
Stepped-up basis
It establishes the basis heirs will use when they later sell.
A value that is too high costs the estate now; one that is too low can cost heirs later and invite IRS scrutiny.
In Hawaiʻi, estates frequently hold leasehold interests, kuleana and family land in undivided shares, and properties on several islands. Each needs careful treatment to arrive at a supportable value.
Why the Value Matters
Even Without Estate Tax
Many estates owe no estate tax at all, yet still need a date of death appraisal. The reason is basis. Inherited property generally takes a basis equal to its fair market value at the date of death, often called a stepped-up basis. When heirs later sell, capital gain is measured from that value.
Without a supportable appraisal, heirs may struggle to prove their basis years later, when records are harder to reconstruct. An appraisal at the time of death is inexpensive insurance against that problem.
When the Estate
Owns Only Part
Estates frequently hold a share in a property rather than the whole: a half interest with a surviving spouse, a share in family land, or a minority interest in a property held with others. A fractional interest is usually worth less than its proportional share of the whole, because the owner cannot control the property or sell it easily.
We value the property as a whole, then analyze the market evidence for the interest held. Where an entity holds the real estate, we coordinate with the business valuer on the entity-level analysis. Our partial interest appraisal guide explains the issues.
Built Around Your
Filing Date
The federal estate tax return (Form 706) is generally due nine months after the date of death, unless extended. If the alternate valuation date is under consideration, values may be needed at both dates. We set delivery dates at engagement so counsel has time to review before filing.
Key dates after a death
- Date of deathThe valuation date for the estate
- Within 3 monthsEstate inventory, after the personal representative is appointed (HRS §560:3-706)
- 6 monthsAlternate valuation date, if the estate elects it
- 9 monthsFederal estate tax return (Form 706) generally due, unless extended
Alternate valuation date
An executor may elect to value the estate's assets six months after the date of death instead of at death, when that election reduces both the value of the gross estate and the tax owed. If counsel is considering the election, we can value the property as of both dates in the same engagement.
Hawaiʻi estate tax
Hawaiʻi imposes its own estate tax, with an exemption amount and rules that differ from the federal tax. A Hawaiʻi estate may need a state filing even when no federal return is required. Your attorney or CPA will confirm the requirements for the estate. Our guide to estate appraisal for tax purposes covers the basics.
This page is general information, not legal or tax advice.
Respectful, Thorough,
On Schedule
- 01
Engagement with counsel
We confirm the date of value, the interest appraised and the filing deadline. - 02
Inspection
We inspect the property, coordinating access sensitively with the family or representative. - 03
Retrospective analysis
Market evidence as of the date of death, not today. - 04
Report
A USPAP-compliant report prepared by a qualified appraiser, with support for every conclusion.
What You
Receive
- The market value conclusion as of the date of death (and alternate valuation date if requested)
- The interest appraised, whether fee simple, leased fee, leasehold or a fractional interest
- A description of the property and its condition as of the valuation date, with photographs
- The market evidence and analysis supporting the value
- The appraiser's qualifications and USPAP certification
- A report format suitable for the estate inventory and for estate and gift tax returns
Trust Administration
Trustees need values at many points in a trust's life: when the trust is funded, when assets are distributed or divided among beneficiaries, when a sub-trust is created at the first spouse's death, and for periodic reporting.
Each valuation follows the same rigor as a date of death appraisal, at the date the trust instrument or the event requires. For trusts holding several properties, we can schedule valuations together to keep the method consistent.
What Our Clients Say
My preliminary review of the two appraisals you prepared showed that you were thorough and complete with your analysis, and I am happy with your work.
Frequently Asked
Questions
- Yes. Date of death appraisals are retrospective by nature. We value the property using market evidence as it stood on that date.
- The personal representative must list each asset at its date of death fair market value on the estate inventory, and may employ a qualified and disinterested appraiser where value is in reasonable doubt. Your attorney will advise whether an appraisal is needed for your estate.
- Yes. Our SRA-designated appraisers handle residential estates, including luxury property, alongside commercial and land holdings.
- If heirs or parties disagree on value, see our litigation support appraiser services.
- If an estate tax return is filed, real property must be reported at fair market value, and a qualified appraisal is the accepted way to support it. Your attorney or CPA will advise on filing requirements.
- The same rigor as a date of death appraisal, at the date the trust event occurs, such as funding, distribution or division.
- Yes. Retrospective appraisals can be prepared long after the date of value, using the market evidence available at that time.
- We inspect wherever possible. If the property has changed or been sold since the date of death, we rely on records, photographs and interviews to document its earlier condition.
- Yes. Gifts of real estate during life need a value as of the date of the gift for gift tax reporting, and we prepare these to the same standard.
- We set a delivery date at engagement based on the filing deadline. Tell us the deadline when you first call.
- Yes. Estates administered elsewhere often include Hawaiʻi property, and we work with counsel wherever they are based.
Discuss an
Estate With Us
Tell us about the property, the date of death or valuation date, and any filing deadline. We will respond promptly and with care.
Prefer to talk? Call (808) 784-4320