A date-of-death appraisal sets the fair market value of an estate’s property as of the day the owner died. Maryland taxes estates above $5 million and also levies a 10 percent inheritance tax. Virginia has neither, apart from certain remainder interests that remain subject to its inheritance tax. The District exempts $4,988,400 for deaths in 2026. All three require a defensible valuation.
If you are settling an estate in the DC metro, you have probably been told you need a date-of-death appraisal, without being told why or what makes one hold up. Maryland is the only state that imposes both an estate tax and an inheritance tax, Virginia effectively imposes neither, and the District sets its own threshold, so the answer depends on which side of the Potomac the property sits.
What Is a Date-of-Death Appraisal and Why Is It Required?
A date-of-death appraisal is a written opinion of the fair market value of a decedent’s property as of the date of death, prepared by a qualified appraiser. For personal property, that means furnishings, fine art, jewelry, silver, coins, firearms, collections, and everything else without a public price quotation.
It is required in two directions. Looking backward, it establishes the gross estate for federal and state estate tax. Looking forward, it sets the heirs’ cost basis, which determines what they owe when they sell.
How the Stepped-Up Basis Rule Makes the Date-of-Death Value Matter
Under Internal Revenue Code § 1014, property acquired from a decedent takes a new cost basis equal to its fair market value on the date of death. The original purchase price disappears. A dining suite bought in 1974 for $900 and worth $3,000 on the date of death carries a $3,000 basis into the heirs’ hands.
That single rule is why the appraisal matters even in estates that will never owe a dollar of tax. Without a documented date-of-death value, the family has no support for the basis it claims later, and the IRS is entitled to treat an undocumented basis as zero.
The Alternate Valuation Date: When a Maryland, Virginia, or DC Estate Can Elect It
Federal law lets an estate elect a second valuation date six months after death instead of the date of death itself. The election lives at IRC § 2032 and is made on Form 706.
The election is narrower than it sounds. Section 2032(c) allows it only where it decreases both the value of the gross estate and the sum of the federal estate tax and the chapter 13 generation-skipping transfer tax on property includible in the gross estate, reduced by allowable credits. An estate that owes neither tax cannot use the election at all.
Maryland Estate Tax and Inheritance Tax Appraisal Requirements
Maryland is the only state imposing both taxes, which makes the valuation work heavier. The estate tax exclusion is $5 million and is not indexed for inflation. Form MET-1, the Maryland estate tax return, is filed with the Comptroller within nine months of death.
The inheritance tax is separate and turns on who receives the property, not on how large the estate is. It is a flat 10 percent, collected through the Register of Wills, and the exemptions under Md. Code Tax-General § 7-203 are wider than most summaries suggest: spouses, children and lineal descendants, parents, grandparents, siblings, stepchildren and stepparents including former ones, spouses of children and of lineal descendants, so a son-in-law or daughter-in-law owes nothing, unremarried surviving spouses of deceased children, entities owned entirely by exempt persons, and registered domestic partners. A collateral heir such as a niece, nephew, cousin, or friend is not exempt.
Because the tax is calculated on what passes to a non-exempt beneficiary, an estate appraisal in Maryland does tax work even in estates nowhere near the $5 million line.
Virginia Has No Estate Tax, and Still Needs a Date-of-Death Valuation
The Virginia estate tax was effectively repealed for deaths on or after July 1, 2007, and Virginia Tax states that the Commonwealth today imposes no estate tax and no inheritance tax, apart from certain remainder interests.
That does not remove the appraisal. Every Virginia personal representative must return an inventory of the decedent’s personal estate to the Commissioner of Accounts within four months of qualification under Virginia Code § 64.2-1300, and it has to carry values.
The federal layer applies in Arlington, Alexandria, and Fairfax as everywhere else. A Virginia estate above the federal exclusion files Form 706, and every heir needs a documented stepped-up basis. The absence of a state tax simplifies the filing, not the valuation.
Washington, DC Estate Tax Threshold and Appraisal Rules
The District sets its own exclusion, the zero bracket amount, and adjusts it for inflation each year. For decedents dying in 2026, the amount is $4,988,400.
DC also carries the strictest probate appraisal language of the three. Section 20-712 requires the appraisal to be in columnar form, to describe and value each item appraised, and to be verified by the appraiser. The personal representative may value cash, debts, and publicly traded securities personally, but not household contents, artwork, or collections.
Estate Tax Appraisal Requirements in Maryland, Virginia and DC Compared
The three jurisdictions diverge on tax, not on the need for a valuation. The federal position is included because it applies wherever the property sits.
| Location | Estate Tax Threshold | Inheritance Tax | Filing Deadline | Appraisal Requirement |
|---|---|---|---|---|
| Maryland | $5,000,000, not indexed for inflation | Yes — flat 10%, with spouses, lineal descendants, stepchildren, parents, grandparents, siblings, and children's spouses among those exempt (§ 7-203) | Form MET-1 within 9 months of death, filed with the Comptroller of Maryland | Date-of-death fair market value, for the inventory and for both taxes |
| Virginia | None | None, apart from certain remainder interests | No state estate tax return | Date-of-death values on the inventory returned to the Commissioner of Accounts |
| Washington, DC | $4,988,400 for deaths in 2026, indexed annually | None | Form D-76 within 10 months of death, filed with the DC Office of Tax and Revenue | Verified appraisal in columnar form for supervised estates (D.C. Code § 20-712) |
| Federal | $15,000,000 basic exclusion for deaths in 2026 | Not applicable | Form 706 within 9 months of death, 6-month extension available | Expert appraisal under oath for articles of marked artistic or intrinsic value over $3,000 |
What Makes a Date-of-Death Appraisal Court- and IRS-Defensible
Defensibility comes down to whether an examiner can follow the reasoning without taking the appraiser’s word for it. Treasury Regulation § 20.2031-6 is explicit: when household and personal effects include articles of marked artistic or intrinsic value totaling more than $3,000, the appraisal of an expert must be filed with the return, under oath, with the executor’s declaration as to the completeness of the itemized list and the disinterested character and qualifications of the appraiser.
The regulation names the categories it has in mind, and they include older homes here: jewelry, furs, silverware, paintings, antiques, books, statuary, oriental rugs, and coin or stamp collections.
Three attributes carry the report. Each item is individually described rather than grouped into a lump figure. Each value is tied to comparable market evidence at the correct level of market. And the appraiser is disinterested, with no stake in the values.
Why USPAP Compliance Matters for a Date-of-Death Appraisal
The Uniform Standards of Professional Appraisal Practice, published by The Appraisal Foundation, is the standard attorneys, courts, and insurance carriers look for before they rely on a number. USPAP has operated on a continuous edition since January 1, 2024.
USPAP governs the parts of the assignment that determine whether the value means anything: identifying the client and intended users, stating the intended use, selecting the correct definition of value, disclosing the scope of work, and certifying independence. Two reports on the same dining room can differ widely because one was written to fair market value, the other to replacement cost. That is why an insurer will not accept an estate report for a claim, and why a probate judge will not accept a replacement-value figure on an inventory.
Frequently Asked Questions
Usually yes. Even an estate far below every threshold needs documented values for the probate inventory and for the basis the heirs rely on at sale; without them, the IRS may treat the basis as zero. Have the appraisal prepared while the property is still intact.
No. The Virginia estate tax was effectively repealed for deaths on or after July 1, 2007, and Virginia Tax states the Commonwealth now imposes no inheritance tax apart from certain remainder interests. Federal estate tax rules and the inventory requirement still apply. Confirm the current position with Virginia Tax before filing.
It is a flat 10 percent on property passing to a non-exempt beneficiary, collected through the Register of Wills. Spouses, lineal descendants, stepchildren, parents, grandparents, siblings, sons- and daughters-in-law, and registered domestic partners are among those exempt under Md. Code Tax-General § 7-203; nieces, nephews, cousins, and friends are not. Confirm each beneficiary’s status with your county Register of Wills.
For decedents dying in 2026, the District’s zero bracket amount is $4,988,400, and estates above it file Form D-76 within ten months of death. The figure is adjusted annually, so verify it with the DC Office of Tax and Revenue for the year of death.
A disinterested appraiser with recognized competency in the specific category of property, working to USPAP. Darren Hahnfeld performs court-ready appraisals in-house for probate, estate settlement, divorce, insurance claims, and charitable donations across Maryland, Virginia, and DC. Ask any appraiser to confirm their designation and USPAP currency first.
Schedule a Date-of-Death Appraisal in Washington, DC or Northern Virginia Today
A date-of-death appraisal is the document that holds an estate together. It supports the inventory, the tax position, and years later the basis an heir reports on a sale. Getting it right means examining each item properly and writing to the correct definition of value.
If you are settling an estate in Washington, DC, Arlington, Alexandria, or anywhere in the DC metro, schedule a free consultation with iStuffSellers by calling 301-401-6688. Darren will assess the contents and prepare the licensed personal property appraisal your attorney and accountant need. iStuffSellers is licensed, bonded, and insured in Maryland, Virginia, and Washington, DC.
