Commercial Property in a Washington Estate? Why the Date-of-Death Appraisal Matters
If you're settling a Washington estate that includes commercial property, here's what you need to know about the appraisal:
You have to put a value on the property. If you're the personal representative (the person the court puts in charge), Washington law requires you to make a list of the estate's assets and their values within three months of your appointment.
The value is set as of the day the person died — not the day you get around to it. That date-of-death value becomes the property's new cost basis for taxes, so it follows the estate for a long time and is worth getting right.
You'll usually need a real appraisal, not a guess. For a commercial property — a warehouse, office, apartments, mixed-use, etc. — a professional appraisal is the way to back up the number, especially if the estate has to file a tax return.
This is a special kind of appraisal. It's called a "retrospective" or "date-of-death" appraisal. The appraiser looks at the property today but values it based on what the market looked like on the day the person died.
There may be a second date to consider for taxes. For federal estate tax, you can sometimes use a value from six months after the death instead — whichever works out better for the estate. This can matter if the property's value changed substantially (say, it lost a major tenant).
A solid appraisal protects you. Anyone with a stake in the estate can challenge the values you report, at any point in the process. A credible, well-documented appraisal is what keeps that number from becoming a problem down the road.
Bring in the right appraiser early. You will need a Certified General Appraiser who handles commercial property and understands date-of-death work — not just a residential appraiser sizing up a house.
Bottom line: A commercial property makes an estate more complicated, but a proper date-of-death appraisal handles the hardest part — proving what it was worth — and keeps the whole process moving.
Settling an estate is a lot to manage. If you need a commercial date-of-death appraisal, Ward Valley Appraisal is here to help. Contact us today to schedule a date-of-death appraisal you can rely on.
Sources and further reading: Helsell Fetterman (helsell.com); King County Probates (kingcountyprobates.com); Lancaster Law Office (lancasterlawoffice.com); Alpha Appraisal Services, WA (alphaappraisalservices.com); RCW 11.44.015, 11.44.035, and 11.44.050 (app.leg.wa.gov).