The death of someone important to you exposes you to a number of emotions you must cope with as well as important decisions you need to make. If you’ve been charged with handling the matters of an estate, you might feel alone and overwhelmed. During this difficult time, it’s important to ensure that the probate court’s requirements are met in terms of determining the basis of the estate property’s value.
Complex Undertaking During an Emotional Time
The estate needs to be properly valued to determine if an estate tax return must be filed with the IRS. It’s a complex task that is further complicated by the fact that it’s often highly emotional for those close to the person who has died. However, because it’s essential that the estate appraisal is completed in a way that is accurate, complete and defensible in court, the Personal Representative should ensure that the property is handled by a skilled professional.
Understanding the Estate Tax Appraiser’s Role
The IRS has established Real Property Valuation Guidelines that must be adhered to in order to stand up in court. In order to be qualified, a real estate appraiser must be designated as so under the IRS tax regulations contained in Section 1.170A-17(a). An estate property appraiser is further required to follow the IRS valuation guidelines according to the requirements in Treasury Regulation Section 20.2031-1(b).
What’s Involved in an Estate Appraisal?
Determining an estate’s value typically includes a thorough inspection of the property. It’s appraised based on criteria that are specific to the industry. Calculations are then made by the real estate appraiser based on factors such as the current housing market, exterior amenities, number of rooms, location, new renovations and the size of the lot. The fair market value of the estate is determined by examining the sales of comparable properties that occurred on the date of the death of the owner.
Marc Cormier is a skilled and experienced Realtor who has developed expertise with properties in Maryland, Virginia and Washington DC. He applies his robust knowledge of the area’s housing market with his deep understanding of your needs to match you with the right property. Marc can be reached at (301) 660-6272