Appraisal for Estate Tax in Arkansas

AppraiseItNow appraises many different asset types for estate tax filings, including: 

• Personal property: Furniture, household items, jewelry, sports memorabilia
• Art: Museum-grade and lower-tier artwork
• Machinery & Equipment: medical equipment, trailers, tractors, CNC machinery
• Inventory: large quantities of assets, manufactured or purchased
• Cryptocurrency: Bitcoin, NFTs, Ethereum
• Vehicles: cars, boats & marine surveys, trucks, buses
• Business Interests: Privately-held shares in companies or funds, LLCs, notes, and more 

Who We Service

For charitable contribution appraisals, we mainly service: 

• Households & HNWIs
• Estate executors and personal representatives
• Estate planners and attorneys
• Registered Investment Advisors
• Accountants and Tax Attorneys

When is an appraisal required for estate tax reporting?

An appraisal is generally needed whenever estate assets do not have a readily ascertainable market price. Publicly traded securities may be valued using market quotations, but many categories of property require an independent opinion.

Common examples include real estate, personal property, fine art, machinery & equipment, business interests, and vehicles. 

What is the valuation date for an estate tax appraisal?

In most situations, property is valued as of the date of death.

However, the IRS allows the executor to elect an alternate valuation date, typically six months later, if doing so reduces both the gross estate and the estate tax liability. Once made, the election applies broadly and must follow statutory rules. Counsel usually determines which date applies before the appraisal assignment proceeds.

What is IRS Form 706?

Form 706 is the United States Estate (and Generation-Skipping Transfer) Tax Return. It reports the assets of the decedent, their fair market values, deductions, and the resulting tax calculation.

Appraisals support the values reported for property where market quotations are not available. The IRS may request copies of reports during examination.

The form's core purpose is to report the gross estate of a deceased U.S. citizen or resident at date of death, compute the taxable estate after deductions (debts, expenses, marital and charitable deductions), and calculate any federal estate tax due. 

It is also used to compute generation-skipping transfer (GST) tax on "direct skips" at death and to elect portability of a deceased spouse's unused exclusion (DSUE) to the surviving spouse, even if no estate tax is due.

Who hires the appraiser for an estate tax matter?

The engagement is typically made by the executor, personal representative, trustee, or the estate's legal counsel.

Even though beneficiaries may have an interest in outcomes, the appraiser's duty is to provide an independent opinion. The client is the estate or fiduciary, not individual heirs.

What standard of value is used for estate tax appraisals?

Estate tax reporting almost always requires fair market value.

This is generally defined as the price at which property would change hands between a hypothetical willing buyer and willing seller, neither under compulsion and both having reasonable knowledge of relevant facts. The standard is intended to reflect an objective marketplace perspective rather than the preferences of particular heirs.

How detailed does the appraisal report need to be?

Reports must provide enough information for a reviewer to understand what was valued and how the conclusion was reached.

This typically includes:

• Identification and description of the property
• The effective date of value
• Relevant market data
• Analysis performed
• Assumptions or limiting conditions

Insufficient support can create risk during audit.

Who pays for the appraisal?

The cost is generally an administrative expense of the estate.

Payment is usually made from estate funds and may be coordinated by the executor or counsel as part of overall administration.

Who needs to file Form 706?

The filing obligation falls on the executor (or personal representative or administrator) of a decedent's estate.

For 2026 deaths of U.S. citizens/residents, the executor must file Form 706 if gross estate + adjusted taxable gifts exceeds the $15M federal exemption. Even below that, filing elects portability of the decedent's unused exclusion (DSUE) to the surviving spouse.

Mandatory filing (tax due risk):

• Combined value > $15M (2026 basic exclusion amount; indexed annually).

Optional but smart (portability):

• File anytime within 5 years of death via Rev. Proc. 2022-32 (complete Form 706 with top notation: "FILED PURSUANT TO REV. PROC. 2022-32 TO ELECT PORTABILITY"). No tax due needed.
• Locks in DSUE for survivor's future gifts/estate, potentially doubling exemption to $30M for couples.

Non-residents use Form 706-NA. Model with your CPA re: prior 709 gifts.

Who prepares Form 706?

Legally, the executor or administrator is responsible for filing, but in practice, it is usually prepared by professionals. Common preparers include estate-planning or probate attorneys who focus on transfer-tax work, and CPAs or enrolled agents experienced with estate and gift tax returns.

What is the difference between Form 706 and Form 709?

Form 706 is the estate tax return filed by the executor after someone dies. It reports the value of the decedent's estate and computes any federal estate (and certain GST) tax.

Form 709 is the gift tax return filed by an individual taxpayer during life to report taxable gifts above the annual exclusion or certain GST transfers.

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