Quick answer
A Baltimore estate appraisal establishes a property's fair market value as of the exact date of death — required by the IRS for estate tax filings, by Maryland probate court for estate administration, and by heirs to calculate the stepped-up cost basis that eliminates decades of capital gains exposure. The appraisal must be performed by a Maryland Certified Residential Appraiser. Call Ed Drost at 443-904-5229 to get started — most reports delivered within 3 to 5 business days.
Why Baltimore Estates Need a Certified Appraisal
When a Baltimore homeowner passes away, real property in the estate must be valued at fair market value as of the exact date of death. This is not a formality — it is a legal requirement with significant financial consequences for the IRS, for Maryland probate court, and for every heir who will eventually sell the inherited property.
After 36 years of providing estate appraisals to Baltimore families, attorneys, and executors, I have seen the same costly mistakes made over and over — delayed appraisals that make historical market reconstruction more difficult, missed stepped-up basis opportunities that cost heirs tens of thousands of dollars in unnecessary capital gains taxes, and underqualified appraisers whose reports do not satisfy IRS or probate court requirements. This guide exists to help Baltimore families and their advisors avoid every one of those mistakes.
IRS Estate Tax Filing
Federal estate tax applies to estates exceeding the current exemption threshold. A certified appraisal from a qualified appraiser is required documentation on IRS Form 706. The IRS scrutinizes estate property valuations closely — an unsupported or uncertified value is an audit trigger.
Maryland Probate Court
Maryland's Register of Wills requires an inventory of estate assets including real property. A certified appraisal from a Maryland Certified Residential Appraiser provides the court with defensible, professionally documented value evidence that satisfies probate administration requirements.
Step-Up in Cost Basis
Even when no estate tax is owed, a certified date-of-death appraisal establishes the stepped-up basis that dramatically reduces capital gains tax when the inherited property is sold. This is the most overlooked and most financially significant reason to get an estate appraisal.
The Step-Up in Basis — The Most Overlooked Benefit
Many Baltimore families do not realize that even when no federal estate tax is owed, a certified date-of-death appraisal can save the heirs tens of thousands of dollars in capital gains taxes when the property is eventually sold.
The IRS allows inherited property to receive a "stepped-up" cost basis — meaning the heir's tax basis is reset to the property's fair market value at the date of death, not the original purchase price. For Baltimore properties that have appreciated significantly over decades of ownership, this distinction is enormous.
Step-Up in Basis — Baltimore Example
Original purchase (1978)
$85,000
What the deceased paid — without step-up, capital gains calculated on this
→
Date-of-death value (2026)
$375,000
Certified appraised value — the heir's new stepped-up cost basis
Without step-up: capital gains calculated on $290,000 of appreciation when sold. With step-up: $0 in capital gains if sold at appraised value. Potential federal tax savings at 15% rate: $43,500