Most of us have absolutely no idea how to estate settlement works and we’re caught off guard when we’re suddenly expected to settle one unexpectedly. At Sacramento Appraisal Group, we understand this and we hope the following information can assist those searching for answers as they try to cope with their loss. When ownership of an estate is transferred due to inheritance, it is very common to seek an estate settlement appraisal for tax purposes. Typically the appraisal is ordered by an attorney or an accountant. Sometimes a family member, even the heir of the estate, will select an appraiser to come and determine the value of the property. Some people wait as long as 2-6 months to have the property appraised while others have it done right away. There have even been cases where people have waited years to have the property appraised.
It isn’t uncommon in real estate to have an appraiser perform what’s known as a “retrospective appraisal.” A retrospective appraisal doesn’t find the current value of the home, but the value of the property when the previous owner passed away. These appraisals are typically known as “Date of Death Appraisals” or Estate Settlement Appraisals. This allows the taxes assessed onto the property to keep from increasing to a higher level than after the death of the initial property owner. Sometimes a current or “as is” appraisal is ordered to accompany the retrospective appraisal. The “as is” appraisal is based on current market trends and activity. These are the two typical types of appraisals asked for if the title was transferred after the death of the previous owner. It should be noted that every situation is unique and should be handled as such. Sometimes people wait not realizing that it is an IRS requirement to have an estate settlement appraisal for tax purposes. A competent attorney or accountant can assist you and let you know exactly when you need an appraisal. Each individual’s circumstances will be different, and this is why a professional can be such a great assistance as people attempt to make some sense of what’s going on. There’s already enough going on when a loved one passes and we are here to offer assistance to those in need. Please call us today if you have any questions or for a free estimate. (We also discussed Estate Appraisals here)
