Have you decided to get your estate planning taken care of?
Congratulations on deciding to get your estate planning taken care of. This is one of the most responsible things that you can do as an adult. As you know, you want to make sure that everything in your estate is valued properly. It’s not enough to say, “Well, I paid $250,000 for my home twelve years ago, and I guess the price went up, so I’ll put it at $300,000.” You could be right, or you could be wrong.
In fact if you follow what Zillow says, their own statistics say they are inaccurate. They give themselves a 4 star (out of 4) rating for how accurate their values are in Jackson County. What that means is that 61% of the time they are within 5% of sales price. However, that means that 39% of the time they are greater than 5% off…and actually 12% of the time they are off by more than 20%. Do you want to trust your estate values to a system that feels good if they are that wrong that often?
Should the IRS come calling, you want to be right, and you want the proof a professional appraisal will provide you with backup and support in case of an audit.
First, to put your mind and wallet at ease, the costs of appraisals are deductible expenses on estate tax returns and sometimes in estate planning, as well. Secondly, often the appraiser can assist your attorney in actually structuring your estate plan so that it will maximize your tax benefits by providing a strictly “value” point of view.
The appraisal that we do for you has another long-term benefit, as well. It will provide a benchmark for the value of your real estate so that subsequent appraisals will illustrate the movement in value.
What exactly is an Estate Plan?
That’s a great question! Each estate plan is as unique as the individual who creates the plan. Your plan is a collection of legal documents drafted and executed with the guidance of a qualified estate planning attorney. The foundation of any estate plan is a Last Will and Testament which will provide instructions for the distribution of your assets upon your death; however, an estate plan can do much more than simply provide for the division of your assets when you die.
Your plan may also include trusts, advanced directives relating to healthcare, and financial powers of attorney just to name a few additional options. Your personal legacy can also be incorporated into your estate plan through incentives to children and grandchildren that encourage them to strive for personal growth and academic achievement. It can be as boiler-plate or creative as you would like it to be.
An appraisal is an important document to have. Here are a few of the reasons you might want or need one.
- Estate Planning
- Sale to a relative
- Sale to a non-relative
- Dividing your estate among your heirs/beneficiaries
- Prior to listing your house for sale
- Partial interest, typically for income property
- Gifts and gift trusts
- Federal or state tax returns
- Determining the basis for capital gains tax
Aside from you, the people who will want this appraisal are attorneys, accountants and enrolled agents, trustees, executors and administrators. Have one done, get the copies made, and you’re ready for all requests.
All Aces Appraisals will simplify the appraisal process for you. Our number one concern is getting the job done right, and making it as easy for you as possible.
Why get appraisals in connection with estate planning?
Appraisals of privately held business interests (stock, partnership units, etc.) are required by IRS regulations to support values claimed on estate or gift tax returns.
- A professional appraisal provides the client some insurance against an IRS audit and professional support in case of an audit.
- The costs of appraisals are deductible expenses on estate tax returns and sometimes in estate planning (e.g., family limited partnerships).
- Have a full appraisal report done on the most important pieces in your collection. An accredited appraiser can help determine which pieces require a full report. He or she can also help catalog and identify the rest of the collection.
- Often the appraiser can assist an attorney in structuring an estate plan that will maximize the tax benefits for the client by providing the attorney with strictly a “value” point of view.
- The appraisal can provide a benchmark of value for an asset or collection so that subsequent appraisals will illustrate the growth (or decline) in value.
Please let us make the appraising process easier for you.
The appraisal process does not need to be confusing or difficult in the estate planning process. Our job is to connect with you to determine your needs and do what we can to simplify the process for you. At All Aces Appraisals our number one job as a real estate appraisers is to provide credible reports that helps you satisfy your duties and to have the support to back it up if the IRS comes calling.