[WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

[Philip N. Jones]

To me, the question (or rather the answer) is what the WDOR will accept on an estate tax return.
Anecdotal evidence suggests that the WDOR might accept a BPO on a first-to-die no-tax-due return, but they generally do not accept a BPO on a second-to-die tax-due return.
Can anyone else comment on this?   What has your experience been?  Is my anecdotal evidence half-baked?
What other purposes might you use a BPO for in an estate?  Dividing the assets among family?
(When getting a BPO, be sure to insist on an opinion of what the property would have SOLD for on the date of death, not what the broker would have listed it for.  It is often difficult to get brokers to understand that estate tax concept.)
And of course, I agree with those who say that if you will be selling the property promptly after death, then the selling price is the gold standard for valuation, assuming it was sold on the open market to a unrelated third party after a reasonable listing period.  But even that can be a bit tricky at times.  Down here in Oregon, the real estate market was hotter than a pistol for the last three years or so, then early this year it started cooling and actually declining, perhaps by 10%.  I believe it is still declining as we speak.  If Dad died in February, and we sold the house in September, perhaps the WDOR would question whether the September sales price was the February value.  Of course, with the stock market following a similar path, it's time to consider an alternate valuation date election.
Phil Jones


Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of sdonahue at sdonahuelaw.com
Sent: Thursday, September 15, 2022 9:49 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

I've used a BPO on a couple of occasions with no blowback.  If there is some objection, you can always do the full appraisal after that.

Good luck,

Susan

SUSAN DONAHUE
Law Office of Susan Donahue
125 West 2nd Avenue, Suite "B"
P.O. Box 81
Twisp, WA 98856
(509) 996-5944 (phone)
(509) 362-9692 (fax)
sdonahue at sdonahuelaw.com<mailto:sdonahue at sdonahuelaw.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Diane J. Kiepe
Sent: Thursday, September 15, 2022 8:09 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

Michael,

I have used (and others in my firm) a BPO on more than one occasion.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of msafren at jennylinglaw.com<mailto:msafren at jennylinglaw.com>
Sent: Wednesday, September 14, 2022 9:13 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] BPO vs Appraisal for property valuation to obtain step up in basis for estate beneficiaries

Hello Fellow Listservs,

I wanted to ask your collective opinions and experiences on whether a Broker Price Opinion (BPO) was sufficient support to document the value of real estate (as of  the date of decedent's death) for the step up in basis for estate beneficiaries or if you think that a full on appraisal by a licensed appraiser was needed instead of the BPO.

The PR is selling real estate owned by the estate, but did not want to bear the expense and delay of the appraisal if it could be avoided and a BPO substituted to establish the value of real estate for purposes of obtaining the step up in basis valuation for the property for tax purposes.

Thank you all in advance!!

Warmest regards,

Michael S. Safren, Esq.
Attorney at Law

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005
P: (206) 859-5098 | E: msafren at jennylinglaw.com<mailto:msafren at jennylinglaw.com>
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