A probate case requires that the property of the deceased be evaluated, in order to determine the cash value of the property at the date of the death of the deceased. The probate court must know the total cash value of the property, prior to the distribution of the assets.
Probate cases depend mainly on professional valuations to determine the cash value for “non-cash” assets, such as real estate. The term evaluation generally implies a professional evaluation by an expert who is familiar with the type of property and its value in the specific sector.
Why Is A Probate Appraisal Required?
In order to assess the actual monetary value of all the property in its entirety, an appraisal of the assets of a deceased is required. The total cash value of an estate property is based on the cash value of the individual assets. The appraisal helps determine the value of the assets, so the property can be divided into equal parts. Some provisions of the probate law on succession require a fair distribution of assets among the heirs, like all living children.
Many wills also require assets to be divided equally among 2 or more heirs. Both estates distributed through probate and estates distributed by will depend on professional appraisals to determine property values.
Federal and state law also require the estate to be appraised, in order to assess the overall value of its property and tax it accordingly — which is especially true when valuing assets in high-value estates to determine whether estate taxes are due — both federal taxes and in states that impose estate taxes.
Helpful Information About Probate Appraisals
A probate appraisal generally determines the cash value of real estate and personal property. The cash value refers to the monetary value of the property at the date of death of the deceased. The valuation of the cash value of real estate, recreational vehicles & priceless antiques often requires a thorough assessment by a professional expert.
Upon the decedent’s death, the estate administrator conducts an inventory of all property, including real property, personal property, bank accounts and retirement accounts. In general, all property should be appraised for its cash value, with the exception of less expensive items, such as those that could be sold at a yard sale.
An inventory of estate property includes “non-cash” assets and “cash” assets. “Non-cash” assets, such as real estate, vehicles and jewelry, need to be professionally appraised to determine the cash value.
Other “non-cash” assets, such as household goods, may be casually appraised at fair market value, based on the potential retail value of an item. “Cash” assets, such as bank accounts, do not require appraisals. Because the cash value of “cash” assets is clearly evident.
Our Expert appraisers at Hudson View will inspect the property and appraise it based on a list of industry-specific criteria. A house appraisal, for example, often includes a complete inspection of the property and calculations based on the size of the lot, number of rooms, new renovations, exterior amenities, location and current housing market. The appraiser considers comparable property sales on the date of the death of the decedent, to determine the fair market value of the property at that time.