Borealis Appraisals Ltd.
Estate Planning Appraisal
What is an appraisal for estate planning purposes?
An appraisal for estate planning purposes is an assessment of the value of a property to help plan for their distribution upon a person’s death. This type of appraisal is typically conducted to determine the current market value of real estate which will then be used in the creation of a will or trust.
The valuation helps establish:
- The fair market value of assets for tax purposes, including estate taxes or capital gains.
- A basis for dividing assets among heirs, ensuring that the distribution is fair and equitable.
- The property value for trust funding or setting up charitable donations.
An accurate appraisal can also prevent potential disputes among beneficiaries and help minimize tax liabilities, making it a crucial component of effective estate planning.
Other Estate Purpose appraisals include valuing real estate property(ies) after a person dies. An appraisal may be required by the beneficiary(ies) of the deceased’s assets for tax consequences.
An appraisal may also be required if there are multiple beneficiaries of the deceased’s real estate property(ies) and one party wishes to buy out the other(s).