An executor needs a defensible value, supported by a capital gains tax valuation, to obtain probate, to account to beneficiaries, and to divide an estate where one beneficiary takes the property and another takes cash. An agent appraisal is often what gets used, and it is the wrong instrument in both directions: it is a marketing estimate rather than an assessment of market value, and it will not support the CGT position that follows.
The CGT consequence is the part that surfaces later. Under Division 128, where the deceased acquired the property before 20 September 1985, or it was their main residence and not producing income just before death, the beneficiary's cost base is the market value at the date of death. Estates administered without that value leave a retrospective valuation for someone to commission years afterwards.
Section 118-195 can give a full exemption where an inherited dwelling settles within two years of death, extendable in some circumstances under PCG 2019/5. Even where that is expected, establishing the date of death value early protects the position if a sale falls through or the estate is contested. See deceased estate valuations.
Property is usually the largest item in the pool, and competing appraisals obtained by each side predictably diverge. An independent valuation with documented comparable sales and a fee that is fixed rather than tied to the outcome is materially easier to put in front of both parties.
Two dates come up: the separation date, where contributions or changes after separation are in issue, and the current date for the final division. Where both are needed they are two reports. We value the dates you nominate rather than forming a view on which applies. See family law valuations.
For advisers
The embedded gain in the poolWhere one party takes an investment property and the other takes cash or superannuation of the same nominal value, the division is not equal after tax. The property carries a deferred capital gain that the retaining party will pay on at a future sale, since the breakdown rollover defers the CGT rather than removing it. Quantifying it needs a cost base, which frequently needs a valuation.
Where property moves between family members, into a trust or company, or into an SMSF, section 116-30 substitutes market value for the actual proceeds and section 112-20 does the same on the acquiring side. The price recorded on the transfer is largely irrelevant to the tax outcome, and state revenue offices separately assess duty on market value.
One independent valuation obtained before the transfer serves both parties and both assessments. Obtained afterwards, it becomes a retrospective exercise and the transferor may already have a liability they did not anticipate. See related party transfers.
Our reports are independent desktop valuations prepared for tax, estate administration and settlement purposes. They are used to establish values, support negotiation and underpin the CGT position that follows.
Where a court directs a single expert valuation, that engagement carries its own requirements, including the expert evidence rules and usually a physical inspection. If a matter is at that stage, raise it before ordering so we can confirm whether the report you need is one we prepare.
| Report | Fee (AUD inc. GST) | Turnaround |
|---|---|---|
| Residential, current or any past date | $297 | 24 to 48 hours |
| Commercial, current or any past date | $595 | 24 to 48 hours |
Rural holdings, specialised commercial assets and development sites are quoted individually.
Yes. Retrospective date of death valuations are routine, including for deaths many years ago, using sales evidence from that period. The fee is the same as a current valuation and delivery is 24 to 48 hours.
That is for the parties and their solicitors, but an independent report with documented comparable sales and a fee not tied to the outcome is far easier for both sides to accept than an appraisal obtained by one party. Many matters proceed on a single jointly instructed valuation.
Generally no. Our reports are desktop valuations, which suits historical dates because no inspection can record what a property was like at a past date. Where a matter genuinely requires an inspection, including some court-directed engagements, tell us before ordering.
Yes. Reports can be addressed to the firm, the client, the executor or the estate, and billed to whichever suits the retainer. Firms ordering regularly can be invoiced on account.
