Estate Planning is most often referred to as the process of organizing and managing the assets of an individual or family with the ultimate goal of estate planning being to transfer the wealth of the family from one generation to the next with the lowest tax consequences possible. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses.
An Estate Tax Appraisal is often referred to as a fair market value appraisal as defined and promulgated by the Internal Revenue Service (IRS). Fair Market Value is defined by the IRS as follows:
“The Fair Market Value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent’s gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate. Thus, in the case of an item of property includible in the decedent’s gross estate, which is generally obtained by the public in the retail market, the fair market value of such an item of property is the price at which the item or a comparable item would be sold at retail.”
Estate Tax Appraisals provide a number of benefits:
- Obviously they provide a taxable value basis as of an appropriate date for the real property owned by the estate for use in filings with the IRS and appropriate state agencies.
- It provides the information necessary to analyze the inventory of real property belonging to the estate holder in question which thereby facilitates the equitable distribution thereof to the entitled heirs.
- They provide the basis by which an equitable evaluation of the taxes required to be paid, if any, by the individual heirs to the estate are responsible. And,
- It facilities the future estate planning needs of the heirs and/or beneficiaries since a value basis of the real property is available for the date of inheritance for the next generation to utilize.
Estate planning can be reactive such as in the case of being precipitated by the passing of a family member or proactive if undertaken prior to such an event. Whatever the situation we are able to provide the appropriate valuation services for your real estate assets. Our name assures peace of mind to everyone concerned because as a reputable real estate valuation company we are able and willing to stand behind our work and appraisals if they are challenged by the parties of concern including the IRS.