The Use of Property and Business Appraisers in Probate Cases

One of the most important parts of a probate case, is assigning a value or worth, to the property in the estate.

This is important first, because the value will determine whether a probate case is even needed in the first place. It also may be important because for property that needs to be liquidated and the proceeds disbursed to beneficiaries, like houses, the court needs to know what a fair sale price may be.

In some cases, if property needs to be “evened out” to make sure each beneficiary gets a fair amount, a value also would need to be assigned to assets.

What Will Someone Buy it For?

As a general rule, your property’s value is its market value—the value that someone might buy it for on ebay or some online marketplace. But other property needs a more professional valuation, and that can mean calling in appraisers and appraisal experts in individual fields.

Real Property

Of course, real estate is perhaps the biggest and most common area where an appraisal is needed. No, the trim (tax) notices that you get in the mail, which are used to determine your real estate taxes, are not an accurate estimation of what property is worth on the open market. Rather, an expert real estate appraiser needs to be called in.

Valuing Businesses

Businesses can be very tough to value, because there are multiple ways of valuing or appraising a business. A business may have a higher or lower value, depending on what method is used, but regardless, this is something that an expert must be called in to determine.

Collectables

Collectables can be difficult because they may be unique. There are only so many people qualified to give appraisals on, say, old coins or antique cars or comic book collections. But when these things are in an estate, their value must be assessed by (sometimes, multiple) appraisers.

No Appraisal?

Sometimes property simply cannot be appraised, or else, the appraisal value doesn’t reflect the property’s real value. This is often the case with family heirlooms or items that have sentimental value. The fair market value doesn’t truly reflect what the item may be worth to family members.

The Date of Valuation

Property must be valued based on its value on the date of the deceased’s death. With probate cases that go on for a long time, this can create problems. Property may increase or decrease, sometimes significantly, if it is a more drawn out probate case. In some cases, the property’s value six months after the death, can be used, if the estate realizes a tax benefit from the altered valuation date.

Agreeing on the Experts

Experts chosen must be agreed upon by all sides to a dispute, which can sometimes cause problems. There may even be situations when multiple experts need to appraise the same property, to get a range of valuations, or an average evaluation.

Call the West Palm Beach probate lawyers at The Law Offices of Larry E. Bray today for help with getting the value of your estate property, for your probate case.

Source:

sunbeltappraisal.org/probatewillsestates