Illinois Estate Appraisal Rules for Executors

When someone dies in Illinois and leaves behind property, bank accounts, vehicles, or other assets, the executor (called a "representative" under Illinois law) is responsible for gathering and valuing everything. That appraisal step isn't optional it's a legal requirement tied directly to probate court filings. If the values are wrong, missing, or unsupported, the court can reject the inventory, delay the estate, or hold the executor personally accountable. Getting the appraisal right protects the executor, the beneficiaries, and the estate itself.

What does Illinois law actually require executors to do about asset appraisals?

Under the Illinois Probate Act of 1975, an executor must file an inventory with the probate court that lists every asset the decedent owned or had an interest in at the time of death. Each item must include its fair market value as of the date of death. This is not the purchase price, not the tax-assessed value, and not a rough guess it's what a willing buyer would pay a willing seller on the open market at that specific date.

The inventory must be filed within 60 days of the executor's appointment unless the court grants an extension. For a more detailed look at the filing process itself, our Illinois probate filing instructions walk through each step.

Which assets need to be appraised?

Every asset in the estate needs a value. Some are straightforward a bank account balance on the date of death is easy to document. Others require professional appraisal:

Real estate homes, land, rental properties, and commercial buildings almost always need a licensed appraisal.
Personal property of significant value jewelry, art, antiques, firearms, and collectibles should be appraised by a qualified specialist.
Business interests ownership stakes in LLCs, partnerships, or closely held corporations often require a business valuation expert.
Vehicles, boats, and recreational vehicles these can be valued using tools like Kelley Blue Book, but a professional opinion may be needed for rare or classic vehicles.
Financial accounts and investments brokerage statements and retirement account summaries typically provide the date-of-death value.

If you're unsure which items fall into the estate in the first place, our guide on what assets must be listed on an Illinois estate inventory covers that in detail.

Who can perform the appraisal?

Illinois doesn't require every asset to be appraised by a single professional, but the values must be defensible. Here's what that looks like in practice:

Real estate hire a licensed Illinois appraiser. The court expects a written report using standard appraisal methodology.
Personal property use a certified personal property appraiser or a dealer with recognized expertise in the specific category (for example, a gemologist for jewelry or a licensed auction house for fine art).
Business valuations a CPA or certified business appraiser with experience in estate valuations is the standard choice.
Everyday personal property for household goods, clothing, and low-value items, the executor can estimate fair market value without a formal appraisal, but should document how the value was determined.

When does the executor need to get appraisals done?

Timing matters. The 60-day inventory deadline starts from the date the executor is appointed by the court not from the date of death. In practice, most executors should begin lining up appraisers within the first two weeks. Real estate appraisals can take two to four weeks to complete, and business valuations can take even longer.

If the estate is complex, the executor can petition the court for an extension before the 60-day deadline passes. Waiting until after the deadline without filing a motion can result in the court issuing an order to show cause meaning the executor has to explain the delay in person.

What value does the executor use date of death or something else?

Illinois uses the fair market value on the date of death for the inventory filing. This is the primary valuation date. However, if the estate has elected or may elect an alternate valuation date for federal estate tax purposes (under IRC §2032), the executor may need a second set of values. That's a tax planning decision usually made with the estate's attorney and CPA, and it doesn't change what goes on the initial court inventory.

For a deeper explanation of how fair market value works in this context, see our article on understanding fair market value in Illinois estate inventory appraisal.

What happens if the executor gets the values wrong?

Errors in the inventory aren't just paperwork problems. Here's what can go wrong:

Beneficiaries can object. Under 755 ILCS 5/16-2, any interested person can file a petition challenging the inventory. If the court finds the executor was careless or dishonest, it can order a corrected filing or remove the executor entirely.
Tax consequences. An undervalued asset can create problems with the IRS or the Illinois Department of Revenue. An overvalued asset can reduce distributions to beneficiaries unnecessarily.
Personal liability. An executor who distributes assets based on incorrect values especially if they benefit themselves or certain beneficiaries can be held personally liable for the difference.

Common mistakes executors make with estate appraisals

Using tax-assessed value instead of fair market value. County assessor values in Illinois are often well below actual market value. The probate court and the IRS both expect true fair market value.
Skipping appraisals on "obvious" assets. Even if a house seems like it's worth around $300,000, a professional appraisal protects the executor from second-guessing later.
Relying on outdated appraisals. An appraisal from two years ago won't hold up. The value must reflect the date of death.
Not documenting how values were determined. If the executor estimated the value of a car using an online tool, they should print or save that documentation. If a professional appraiser was used, the written report should be kept in the estate file.
Forgetting about jointly held or transferred assets. Some assets may have already passed outside probate, but the executor still needs to account for them on the inventory when required.

Do beneficiaries have a say in the appraisal process?

Beneficiaries don't control which appraisers the executor hires, but they do have the right to review the inventory and challenge any values they believe are inaccurate. If a dispute arises, the court may order an independent appraisal. To avoid this, some executors share appraisal reports with beneficiaries before filing, which can reduce conflict and speed up the process.

How should executors organize and file the appraisal documents?

The inventory form itself is filed with the clerk of the circuit court in the county where the probate case is opened. Appraisal reports don't typically get filed with the court as attachments, but the executor should keep them in the estate's records in case the court requests supporting documentation. A clear, organized filing system either physical or digital makes this much easier.

Our step-by-step instructions on completing an estate inventory form for Illinois probate court cover how to fill out the form correctly, including where values go and how to list categories of property.

Does the executor get paid for handling appraisals?

Yes. Illinois law allows executors to receive reasonable compensation for their services, and the time and expense involved in arranging appraisals is part of that. The executor can also use estate funds to pay for professional appraisals these are considered administrative expenses of the estate, not out-of-pocket costs for the executor personally. The key is keeping receipts and documentation so the expenses can be justified if questioned.

Practical checklist for Illinois executors handling estate asset appraisals

✅ Review the full list of estate assets and identify which ones need professional appraisals.
✅ Hire a licensed appraiser for real estate and any high-value personal property.
✅ Confirm all values are based on fair market value as of the date of death.
✅ Gather supporting documents bank statements, brokerage reports, vehicle valuations for financial assets.
✅ Keep all appraisal reports and valuation documentation in the estate file.
✅ Complete and file the inventory form with the probate court within 60 days of appointment.
✅ If more time is needed, file a motion for extension before the deadline expires.
✅ Consult with the estate's attorney if any asset values are uncertain or disputed.

Next step: If you haven't started the inventory yet, begin by listing every asset you know about, then identify which ones require a professional appraiser. Schedule those appraisals immediately delays here are the most common reason executors miss the 60-day deadline.