Filing a Maryland estate tax return means you must prove the value of everything the deceased person owned. This is called proof of valuation support. Without it, the Comptroller of Maryland can question your numbers, delay the filing, or adjust the tax due. Executors who submit proper valuation proof early in the process avoid those headaches.

What exactly counts as proof of valuation support?

Proof of valuation support is the written evidence that backs up the dollar amount you put on an asset. For a house, that could be a certified appraisal or a broker price opinion. For a bank account, it would be a statement from the bank showing the balance on the date of death. For stocks, a brokerage statement or a screenshot of the closing price works.

The key is that each asset on your estate tax return document inventory needs a separate piece of supporting evidence. The Comptroller wants to see that you didn't guess the value or use an outdated number.

Here are common types of valuation proof:

  • Real estate appraisals or comparative market analyses
  • Bank and brokerage account statements dated to the date of death
  • Life insurance policy statements showing the death benefit payout
  • Vehicle appraisals or NADA value printouts
  • Business valuation reports for privately held companies
  • Promissory note documentation with payoff amounts

When do I need to submit valuation proof with my filing?

You include the proof with your Maryland estate tax return when you file it. You don't wait to be asked. The Comptroller's office reviews the return and checks that each asset's value matches the supporting document. If something looks off, they send a notice asking for more evidence.

Maryland law requires the estate tax return to be filed within nine months of the date of death. That gives you time to gather what you need, but starting earlier is better. Some appraisals take weeks to schedule and complete.

What happens if I don't have strong valuation support?

The Comptroller can reject your stated value and assign their own. If they think a house was worth $50,000 more than you reported, the estate tax increases based on that higher number. You then have to fight it with the proof you should have had from the start.

Weak valuation support also leads to audits. An audit means more paperwork, more time, and more stress for the executor. Getting it right upfront saves everyone trouble.

How do I get a proper valuation for estate assets?

For real estate, hire a licensed appraiser who knows your local market. A CMA from a real estate agent can work for some properties, but an appraiser's report is stronger for the Comptroller. Make sure the report states the value as of the person's date of death, not a later date.

For investments, gather the account statements from the bank or brokerage. Many financial institutions will issue a "date of death valuation" letter at no charge. This letter lists each asset and its value on the exact date you need.

Personal property like furniture, art, or collectibles can be trickier. A professional appraiser is best for high-value items. For household goods, a reasonable estimate based on what the items would sell for at a yard sale or auction is usually accepted.

For a complete list of Maryland estate settlement tax forms, check what the Comptroller requires for your specific filing.

Common mistakes executors make with valuation proof

Using valuations from the wrong date is the most common error. The value must be as of the date of death, not the date you sold the asset six months later. Market changes between those dates can cause confusion.

Another mistake is relying on online estimates for real estate. Zillow estimates are not considered official proof. The Comptroller wants a professional appraisal or a detailed report from a licensed agent.

Missing documentation for debts is another one. If you claim a deduction for a mortgage or a loan, you need a statement showing the payoff amount on the date of death. Without it, the Comptroller may not allow the deduction.

How valuation proof connects to the rest of your estate paperwork

Your valuation documents are part of a larger set of records you'll need to keep organized. The executors who start early and track everything in one place have a much easier time when filing day comes. You can follow a Maryland estate tax document organization timeline to stay on schedule.

Having the right documents gathered also helps when you work with your tax preparer. They need to see everything clearly to prepare an accurate return. Many delays come from missing paperwork, and valuation proof is one of the most common missing pieces.

For a full picture of what the Comptroller expects, review what documents are needed for Maryland estate tax return preparation.

Practical next steps for gathering valuation support

Start with a list of every asset the person owned. Then go down that list and decide what kind of proof each asset needs. Contact appraisers, banks, and brokers as early as possible so you're not rushing near the deadline.

Keep all valuation documents in a single folder, either physical or digital. Label each one clearly with the asset it supports. When you send the return to the Comptroller, include the proof for each line item that needs it.

Here is a simple checklist to follow:

  • Get a certified appraisal for real estate and high-value personal property
  • Request date-of-death letters from all banks and brokerages
  • Print out life insurance policy benefit statements
  • Get payoff statements for all debts you plan to deduct
  • Store every document in one place with clear labels
  • Review each asset against your proof before the return is filed

Tip: Make copies of everything. The Comptroller may ask to see proof again later, and it's easier to pull a copy than to request a new appraisal or bank letter months after the original.