Understanding the value of what you own or inherit will help you make wise financial decisions. Estate appraisals determine the value of property for the following reasons.
Types of Estate Appraisals
Pre-listing estate appraisal
A pre-listing estate appraisal is when the parties need to know the value of a property so that they can list and sell it after someone’s death. Pre-listing appraisals are generally not related to taxes or the IRS.
A donations appraisal is needed in scenarios related to charitable or non-profit donations. If you have inherited a house and would like to donate it, you would need to establish a value for tax purposes.
Estate tax appraisal
Estate tax is a tax levied on the value of an estate of a deceased person before distributing the funds and assets to the heirs. Beneficiaries would order an estate tax appraisal so that they can report the value of the property to the IRS.
Estate trust appraisal
A trust is an arrangement that allows a third party to hold assets on behalf of a beneficiary. A trust specifies when and how assets are distributed. For example, “The house goes to Jane. The condo goes to John”. Depending on the type of the trust and the timing, an appraisal could be needed after a person passes away, or it could be required when a living individual establishes a trust.
Probate estate appraisal
When the probate court is distributing and handling an estate, it has to follow the court’s process of determining which parties receive what property and how much each piece of property is worth. First, the court identifies and inventories the properties in an estate. The court then has properties appraised and pays any debts and taxes before distributing the funds to the beneficiaries.
Information for Beneficiaries
Settling an estate generally requires establishing the fair market value for any residential property involved. Many people do not realize how beneficial it is to have an appraisal that supports the numbers used in the documents filed with the revenue authorities. Contact Stafford Appraisals to learn more about the appraisal process or to schedule an estate appraisal. For more detailed information on estate planning including DIY estate planning, visit the American Bar Association’s Estate Planning Info & FAQs.
Information for Estate Lawyers
Stafford Appraisals looks forward to working with you to provide the best service possible to your clients. Contact us today to request an estate appraisal fee schedule or to schedule an appraisal.