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 or during estate planning. This valuation is essential for legal, financial, and tax-related purposes in the United States. Assets commonly included in estate valuation are real estate, bank accounts, investments, business interests, retirement accounts, and personal property.

Accurate estate valuation helps ensure proper distribution of assets according to wills, trusts, or state laws. It also plays a critical role in calculating federal and state estate taxes, as tax liabilities are based on the total value of the estate. Errors or inconsistencies in valuation may lead to disputes among beneficiaries or scrutiny from tax authorities.

Several methods are used in estate valuation, depending on the type of asset involved. Real estate is often valued through professional appraisals, while securities are assessed using market values on the applicable date. Business interests may require more complex valuation techniques, such as income-based or asset-based approaches.

Estate valuation also supports transparency during probate proceedings by providing a clear financial picture of the estate. A well-documented and accurate valuation can reduce conflicts, improve compliance with legal requirements, and facilitate an orderly estate administration process.