While most people don’t want to think about estate planning, it is one way to make sure all your affairs are in order for you and your loved ones. There are many different ways to approach this process, and your estate plan should be tailored to meet your unique situation and goals. However, one thing that most estate plans have in common is an appraisal performed by an independent appraiser who has expertise in valuing real property.
What is Estate Planning?
Estate planning is creating legal documents to guide your estate. It’s an essential part of life that can help you avoid probate and ensure the distribution of assets according to your wishes. Estate planning may helpreduce taxes since many assets are passed at death, possibly without tax liability if transferred appropriately during life or through a trust.
A good estate planner will help create a plan based on your goals and values so that everyone benefits from the best possible outcome.
Why Is It Important To Get An Estate Planning Appraisal?
An estate appraisal provides a value of real estate at a date specified. It may be a current date, the date of death, or a date of your or your advisor’s choosing. The value date may extend years in the past. The real estate value may impact tax planning, but is needed to establish a basis. According to the IRS, two of the ways to establish a basis are:
“1. The fair market value (FMV) of the property on the date of the decedent’s death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
2. The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.”
If you want to learn more, visit IRS.gov.
How Can An Estate Planning Appraisal Make Probate Easier?
An estate planning appraisal may make the probate process easier for you, your beneficiaries, and your heirs.
Do You Need Estate Planning For A Family Member?
It is hard enough to deal with the death of a family member without having to think of all the following steps. Let us help lighten your load and take care of the estate planning. Contact DVS Appraisals today to learn more about estate planning for your family.