After the death of a family member or loved one, the process of settling his or her estate can be especially difficult. When emotions are high, and there are pressing, time-sensitive concerns, having a team of professional experts from Scott Cloward Appraisal Services, Inc. to help guide you through the process ahead will make the transition smoother.
If ownership of your loved one’s property has been transferred to you, an appraisal is needed for tax assessment purposes. This is a time-sensitive issue, and must be handled quickly to meet IRS reporting standards. Estate appraisals are usually ordered two to twelve months after the date of the original owner’s death.
Six Possible Reasons for Estate and Date of Death Appraisals
1. Equitable Distribution. If there is more than one heir, an appraisal of the total property is a required for equal division.
2. Estate Tax. At the date of death, the estate property must be appraised, especially if the overall estate it is more than the value threshold.
3. Establish a Basis. Performed prior to death to serve as benchmark of the selling price.
4. Probate Appraisal. A probate appraisal is a court requirement for the appraisal and inventory of the estate assets.
5. Estate Planning. As a property owner, you can plan ahead of time for the distribution, donation, and taxes of your estate.
6. Trust Inventory. Be a part of a well-established trust. A trust inventory will set an established value for your property.
How important it is to know the fair market value of the property?
Fair market value (FMV) is the given estimate for the value of a property based on the knowledge, willingness, and assessment of the buyer to an unpressured and willing seller in the market. An estimate of fair market value is generally subjective due to circumstances such as time, location, existence of precedents, and the assessment principles of the buyer and seller.
The selling price of a property is an indication of a reasonable fair market value. The following criteria must be observed in the process of estate planning, valuation, and selling: