Legal Question in Wills and Trusts in California

The new basis is set at the value of the property at the time of death. For federal capital gains purpose, the value set by the probate appraiser is evidence of that value, but is not conclusive or binding on the Internal Revenue Service. If the sale is very close to the date of death, then it may be that the sales price is more persuasive as to the property's true basis.

It makes no sense to speculate on tax advantages in a pubic forum like this.

Mr. Perry is right on the first issue. The market value at the moment of death is the new basis. Figuring out what that number is, is open to debate and negotiation with the tax authorities, and ultimately a decision by the tax court if it comes to that.

On the second question, I would generally agree with Mr. Perry, but not on such a simple question as that. The appraisal is not binding, but it is good evidence of the value at death. So the higher it is provides evidence that the difference between the new basis and the later selling price is less - hence the capital gains tax is less.

Although I agree with both answers of previous counsel, you would be wise in obtaining an opinion from a CPA who specializes in tax matters as relates land values and probate estate transfers.