Kidder Mathews’ multi-disciplinary team of real estate experts offers a full range of estate, gift, and trust real estate valuation services to assist clients in executing strategies to preserve businesses and other assets in their families for future generations. Our valuation professionals work with property owners, families, attorneys, accountants, trustees, and other advisors to support estate planning, gift tax reporting, and wealth transfer for individual assets, ownership interests, and complex multi-property portfolios.
With increased IRS scrutiny, it is imperative that estate and gift tax valuations are diligently performed and thoroughly documented to ensure supportable conclusions.
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Estate, Gift & Trust Real Estate Appraisals
Kidder Mathews provides independent real estate valuations to support estate tax filings, gift tax filings, estate planning, trusts, wealth transfer strategies, succession planning, and other tax and financial planning needs. Depending on the assignment, our work may include valuation of the underlying real property, partial ownership interests, minority interests, portfolio holdings, or other complex real estate interests.
Kidder Mathews Advantage
Through strategic alliances developed over decades, Kidder Mathews has the capabilities to address a broad spectrum of estate and gift tax related issues.
Collectively, our real estate team offers more than a century of experience assisting our institutional and non-institutional clientele defend their real estate valuation positions before Internal Revenue Service, Federal Tax Court, state tax authorities, and other taxing entities.
Date-of-Death Real Estate Appraisals (Stepped-Up Basis)
When an owner passes away, the tax basis of inherited real estate is generally reset to its fair market value on the date of death. Kidder Mathews prepares retrospective date-of-death appraisals that establish that value for executors, trustees, heirs, attorneys, and accountants, supporting estate tax reporting, the heirs’ new tax basis, and the allocation between land and depreciable building.
Because these appraisals are often completed months after the date of death, the analysis relies only on market evidence that was known or knowable as of that date.
IRS, Tax Court & Valuation Dispute Experience
Estate and gift tax valuations can face significant scrutiny from federal and state tax authorities. Kidder Mathews prepares carefully documented valuation analyses designed to support defensible conclusions, and our team has experience assisting clients and their advisors with matters involving IRS examination, Federal Tax Court testimony, state tax authorities, and other valuation disputes.
Kidder Mathews Estate, Gift & Trust Valuation Services
Real Estate Appraisal & Valuation — Independent valuation of commercial, residential, agricultural, and specialty real estate for estate planning, estate tax, gift tax, and wealth transfer purposes.
Date-of-Death (Stepped-Up Basis) Appraisals — Retrospective fair market value appraisals as of the date of death for heirs, executors, and their advisors, supporting estate tax reporting and the heir’s new tax basis.
Federal Tax Court Testimony & IRS Expert Witness Work — Expert witness testimony and valuation analysis supporting matters involving IRS examination, Federal Tax Court, and other tax authority disputes.
Blockage & Portfolio Discount Analysis — Analysis of market absorption and portfolio-related valuation considerations for large groups of real estate assets.
Minority Interest Discounts — Analysis of valuation discounts for minority, noncontrolling, partnership, and LLC ownership interests in real estate.
Discounts for Lack of Marketability — Analysis of valuation discounts associated with less-marketable ownership interests.
Property & Ownership Types We Value
Property types may include:
- Retail (regional mall / shopping center portfolios)
- Industrial
- Agricultural land and ranches
- Residential and multifamily
- Hospitality and resort properties
- Mixed-use and personal estate properties
Ownership interests may include:
- Fee simple interests
- Minority and noncontrolling interests
- Portfolio interests
Who We Work With
Kidder Mathews provides estate, gift, and trust real estate valuation services for:
- Property owners and high-net-worth individuals and families
- Family offices
- Trustees and executors
- Estate planning, trust, and tax attorneys
- Accountants and financial advisors
Representative Assignments
Large Portfolios
- Irrigated farmland and rangeland portfolio (over 400,000 acres, taxable estate)
- National mall portfolio exceeding 235 properties and 42 million square feet
- Portfolio of personal estates valued in Washington, California, Idaho, Montana, Utah, New Mexico, Louisiana, New York, London, and the south of France for estate planning purposes
IRS & Tax Court Matters
- Estate in Modesto, CA valued containing three apartment complexes that were master leased to an operating company; valued the properties and Tax Court adopted a value within 5% of our conclusion of value
- Provided valuations of numerous properties within Washington that included minority ownership discounts that were submitted to the IRS and never challenged
Agricultural & Land Assets
- Estate in the Central Valley of California valued with more than 18,000 acres of agricultural land, mostly improved with almond, pistachio, and walnut orchards
International Assignments
- International development project in Bermuda (estate planning related use)
- Upscale resort development comprising 1,438 acre atoll in French Polynesia (estate planning related use)
- Large planned development in Cabo San Lucas, Mexico for estate tax valuation
- High net worth individual estate valued that included airplane hangars, a private island, resort, and personal estate in Washington and British Columbia
Complex & Discount Analysis
- Underlying valuations and blockage analysis comprising 54 industrial buildings in Silicon Valley (taxable estate); successfully defended through IRS scrutiny and audit
- Large ranch near Lone Pine, CA valued for an estate; the property included one of the largest blocks of private land in the county and required a discount for market absorption which was defended through audit
- Portfolio of 30 homes plus commercial buildings in San Jose, CA and 40 homes and commercial buildings in Orange County, CA valued; the valuations involved market absorption discounts (blockage discounts), both were audited and both were successfully defended
Frequently Asked Questions
Does Kidder Mathews provide real estate appraisals for estate and trust planning?
Yes. Kidder Mathews provides real estate valuation services for estate planning, trusts, estate administration, gift tax planning, estate and gift tax filings, succession planning, and other wealth-transfer needs.
What types of real estate can Kidder Mathews value for estate or gift tax purposes?
Kidder Mathews values commercial real estate, residential properties, agricultural land, large portfolios, and complex real estate holdings for estate and gift tax purposes.
Who typically needs an estate or gift real estate appraisal?
Clients may include property owners, high-net-worth individuals and families, family offices, trustees, executors, attorneys, and accountants.
Does Kidder Mathews work with estate planning attorneys and CPAs on estate and gift valuations?
Yes. Kidder Mathews valuation professionals work with estate planning, trust, and tax attorneys, accountants, financial advisors, trustees, and executors, as well as property owners and families. Our team prepares carefully documented valuation analyses designed to support defensible conclusions for estate tax filings, gift tax reporting, and wealth transfer planning, and has experience assisting attorneys and accountants with matters involving IRS examination, Federal Tax Court, and state tax authorities.
Why is a real estate appraisal needed for estate or gift tax purposes?
An independent appraisal may be needed to establish the value of real estate or an ownership interest for estate tax, gift tax, estate administration, wealth transfer, succession planning, or related reporting and planning purposes.
What is a date-of-death real estate appraisal?
A date-of-death appraisal is a retrospective appraisal that estimates the fair market value of real estate as of the date the owner died, even when the work is completed months later. The value generally becomes the heir’s new tax basis in the property and may be reported on an estate tax return where one is required. Kidder Mathews prepares date-of-death appraisals for executors, trustees, heirs, attorneys, and accountants.
Why do heirs and estates need a date-of-death appraisal?
A date-of-death appraisal documents the new tax basis in inherited real estate, which affects the gain or loss calculated on a later sale and the depreciation that can be claimed going forward. It also supports the allocation of value between land and building. When no estate tax return is filed, a well-supported appraisal is often the primary evidence of the heir’s basis if the IRS later questions it.
Can Kidder Mathews value partial or minority interests in real estate?
Yes. Kidder Mathews provides valuation services involving partial, minority, partnership, LLC, and other ownership interests and can analyze applicable discounts and other valuation considerations.
Does Kidder Mathews provide support during an IRS audit or Tax Court dispute?
Yes. Kidder Mathews has experience assisting clients and advisors with valuation matters involving IRS scrutiny, Federal Tax Court, state tax authorities, and other disputes, including valuation analysis and expert witness testimony.
Can Kidder Mathews value large real estate portfolios for estate planning?
Yes. Kidder Mathews has experience valuing large, multi-property portfolios and analyzing portfolio-related and market-absorption considerations for estate and gift tax purposes.
Does Kidder Mathews handle estate and gift valuation assignments outside the Western U.S.?
Yes. Kidder Mathews has completed estate-related valuation assignments throughout the U.S. and internationally.
Who leads Kidder Mathews Valuation Advisory Services?
Randy Clemson, Executive Vice President of Kidder Mathews Valuation Advisory Services, leads the firm’s valuation advisory group companywide across the Western U.S. Estate, gift, and trust valuation inquiries can be directed to Randy Clemson at 602.513.5158 or randy.clemson@kidder.com.
Contact Us
Estate, Gift & Trust Real Estate Valuation Specialists
Christopher Berger, MAI | Bellevue, WA
Daniel Boring, CRE®, MAI, ARA, ASA | West Coast
Bill Drewes, MAI | Los Angeles, CA
Robert Dunatov, MBA | Orange County, CA
Tom Fernwood, MAI | San Francisco, CA
Valuation Advisory Services Leadership
Randy Clemson, Executive Vice President, Valuation Advisory Services
602.513.5158 | randy.clemson@kidder.com
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute tax, legal, or accounting advice. Kidder Mathews provides real estate appraisal and valuation services. The tax treatment of any property or transfer depends on individual facts and circumstances, so please consult your attorney, CPA, or other qualified tax advisor.