Estate Planning & Divorce

A residential appraisal for estate planning is an independent, objective assessment of a property's value, to support the distribution of assets as part of an individual's or family's estate planning. The primary goal of this appraisal is to provide a reliable estimate of the property's value, which can be used to:

1. Determine estate tax liability: The appraisal helps to establish the property's value for estate tax purposes, ensuring that the estate's tax liability is accurately calculated.

2. Allocate assets: The appraisal provides a basis for dividing assets among beneficiaries, such as heirs or charitable organizations, in a fair and equitable manner.

3. Establish a basis for future transactions: The appraisal sets a benchmark for the property's value, which can be used to determine capital gains or losses in future transactions, such as sales or gifts.

4. Support gift tax reporting: If the property is being transferred as a gift, the appraisal provides a value for gift tax reporting purposes.

5. Facilitate trust administration: The appraisal helps to establish the property's value for trust administration purposes, ensuring that the trust's assets are accurately valued and distributed according to the trust's terms.

Estate Planning

Divorce

A residential appraisal for divorce is an independent, objective assessment of a property's value, to support the division of marital assets as part of a divorce proceeding. The primary goal of this appraisal is to provide a reliable estimate of the property's value, which can be used to:

1. Determine equitable distribution: The appraisal helps to establish the property's value, ensuring that the marital assets are divided fairly and equitably between the parties.

2. Support settlement negotiations: The appraisal provides a basis for negotiations between the parties, helping to resolve disputes and reach a mutually acceptable agreement.

3. Facilitate buyout or sale: The appraisal sets a benchmark for the property's value, which can be used to determine the amount of a buyout or the sale price of the property.

4. Establish a basis for future transactions: The appraisal provides a value for the property, which can be used to determine capital gains or losses in future transactions, such as sales or refinancing.

To be effective in estate planning and divorce, the appraisal report should:

• Be performed by a licensed and/or certified, experienced appraiser.

• Be based on a thorough inspection of the property.

• Consider all relevant factors that affect the property's value.

• Provide a clear, well-supported opinion of the property's value.

• Be retained as part of the estate's records, in case of future audits or disputes

• Be admissible in court, in case the divorce proceeding becomes contested.