A date of death appraisal is a home valuation done to find out the fair market value of a property when the owner passes away. An estate appraisal is done to determine the value of all the real estate owned by the decedent at the time of their demise. There are new IRS tax regulations that require survivors to acquire a qualified appraisal on their loved one’s real property after their passing. These appraisals provide important tax information for the IRS and are sometimes required by the court for the settlement of an estate. Lexington Appraisals has the experience and expertise necessary to handle your estate and date of death valuation needs.
Information gathered in a date of death or estate appraisal is used by the IRS for a number of things. One of the aims is to find out if the IRS is owed any money through estate tax. If the property is inherited, a date of death appraisal is also important because the value of the property has to be factored into the net worth of any descendants.
What is the most important part of a date of death appraisal?
The most important part of a date of death appraisal is the assessment of fair market value.
According to the IRS, fair market value is the price for which a property would change hands between a willing buyer and seller, with both parties having all the facts and no necessary urge to buy. It’s the price a property would sell for in the local market conditions, and is not determined or influenced by a forced sale price. This value will used to determine estate taxability by the IRS. If you have questions about the implications of fair market value and estate management, consult a tax attorney.
An appraisal is also beneficial in estate planning. If you’re aware of the fair market value of your home, you can better plan your estate. By structuring your finances and legal documentation to minimize after-death taxes, you can leave a better inheritance for your loved ones and make sure they are well taken care of.
When an estate has a transfer of ownership due to death or inheritance, it is very common for an estate or date of death appraisal to be done for tax purposes. During the settlement process, it is common for an attorney or accountant to order an estate or date of death appraisal or have a family member/executor select an appraiser for the job at hand.
If you are in need of an estate appraisal, Lexington Appraisals can help. In the past, we have assisted lawyers, accountants, estate executors, and even grieving relatives. We fully understand the importance of an appraisal valuation and the sensitivity involved. We can provide estate and date of death appraisals in the following situations:
Estate and Financial Planning: We help individuals plan ahead for the future and lay a solid foundation for their posterity. We know how important it is to leave behind a strong legacy. As your estate appraisers, we will ensure the longevity and equitable distribution of what gets left behind.
Settlement of the Deceased’s Estate: In the event no last will and testament were prepared before death, we can help relatives determine the value of property and assets left behind.
Preparation for Sale: Before selling off property or assets, obtain one of our estate or date of death appraisals to be sure you are getting the best price possible.
Guardianship: When a guardianship or conservatorship has been legally prescribed, we work closely with them to figure out the value of all assets, which will help to make better-informed decisions.
The process of settling an estate is a stressful, but important job. Our team at Lexington Appraisals understands the complexities involved with appraising residential property that is part of an estate and are ready to provide you with the best possible service and experience.
Lexington Appraisals will help you take stock of your property’s valuation for estate planning purposes. If your loved one has passed and you need assistance with a date of death valuation, our expert in-house appraisal team will work with you to make this difficult process run more smoothly. Call us today for a complimentary consultation and detailed quote. All of our appraisals will be completed in agreement of the USPAP guidelines. We know this is a sensitive process, and you can rely on us to handle the experience with the care and dignity it deserves.