Appraisals for Estate Settlement
Settling an estate is a difficult experience following the loss of a loved one. As an executor, not only were you given the fiduciary responsibility to carry out the wishes of the departed. You also will need to handle the estate settlement process. This is to avoid any financial penalties that could follow if the estate tax return were subject to an IRS or State estate tax audit.
When an estate has a transfer of ownership, it is very common for a real estate appraisal to be conducted for tax purposes. In these cases, the trustee is typically directed by their attorney or accountant to hire an appraiser.
Choose an Appraiser That Will Answer Your Questions
Estate settlements are often complicated situations. Heirs and other concerned parties may have different opinions regarding the market value or asking price of a property.
By choosing an experienced appraiser, you’ll receive an unbiased valuation of the property. The opinion of value will be supported and accurate. This very detailed formal appraisal will be delivered within 48-72 hours after the appointment.
We understand the sensitive nature of estate situations. Knowing some questions from heirs may arise, we offer a free consultation to anyone involved in the estate.
An experienced appraiser will provide the most accurate opinion of value.
The appraiser will take in consideration the following aspects for a valuation:
- Information about the property and it’s unique features or characteristics.
- Extensive research on recent, nearby comparable sales
- Current market trends
This valuation can also be used in court, if needed.
Chicago Appraisals has a reputable, professional appraiser in your local area. An appraiser that understands and has years of experience with estate situations.
Retroactive Estate Appraisals
In probate circumstances, retroactive appraisals are fairly common in estate settlement situations. A retroactive appraisal involves appraising a home based on a prior date, which is usually the date of death. In some cases, these real estate appraisals are often referred to as ‘date of death’ appraisals.
In the event a ‘date of death’ appraisal is required, an experienced appraiser will inspect the property. Including the land, building, and fixtures as is today. However, the valuation would be based on the market conditions on the date of death.
For example, if the homeowner died on March 1, 2017, and the appraisal was scheduled for May 10, 2017, the inspection would take place on May 10.
The research or snapshot of the market, would be based on market conditions on March 1, 2017. The retroactive appraisal report would be completed with an effective date of March 1, 2017.
Occasionally, an estate will request both a retroactive appraisal, and a ‘current value’ appraisal. This will help the trustee determine the current market value for purposes of sale or settlement between heirs. This may determine an acceptable selling price for the property, if necessary.
Contact Chicago Appraisals for Estate Planning Assistance
If you have been given the responsibility as executor for a family member’s estate, it’s important to entrust an experienced real estate appraiser.
Contact us for more information on how we can provide our real estate appraisal services to help you settle an estate.
Estate planning is complicated and the facts of each case are unique. This article provides a brief, general introduction to the topic. This is not legal advice. Please contact an estate attorney to provide legal advice. As with any legal matter, we highly recommend consulting with an attorney.