Estate valuation is the process of determining the fair market value of a person’s assets at a specific point in time, often at death. In the United States, estate valuation plays a crucial role in legal, financial, and tax-related matters. Assets commonly included in an estate valuation may consist of real estate, investment accounts, business interests, personal property, and intangible assets.

The primary purpose of estate valuation is to establish accurate values for estate tax reporting, probate proceedings, and equitable distribution among heirs. Federal and state tax authorities rely on these valuations to calculate potential estate tax obligations. An incorrect valuation can lead to disputes, penalties, or delays in estate settlement.

Estate valuation methods vary depending on asset type. Real estate may be assessed through comparable market analysis, while business interests often require income-based or asset-based approaches. Market conditions at the valuation date significantly influence results, making timing an important factor.

Professional standards and legal guidelines govern estate valuation practices in the United States. Documentation and supporting evidence are essential to ensure transparency and compliance. Overall, estate valuation provides a structured framework for understanding an estate’s true worth, helping stakeholders make informed decisions during estate administration and legal proceedings.