Estate planning is the process of valuing a property during a holding period or disposition during your lifetime. An inheritance tax is established when dealing with real estate in an estate plan. We will look at retrospective dates of value, based on when someone has passed. The date of death and the respective values at inheritance, determine the tax value.
When we provide an appraisal in estate planning, we go through a similar process as we do in a market value appraisal. There is a scope of work, which provides the outline for the work to be conducted, followed with the interest to be appraised, whether it is Fee Simple, Leased Fee or a Leasehold interest.
The approaches we utilize are typically a Cost Approach, which is the cost to build the property along with the cost of the land, and a Sales Comparison Approach, which looks at comparable sales within your geographic area.
Following is research of the property and the surrounding area. Last we go through the inspection of the property, both the interior and exterior. Our thorough process and research provide for a highly objective valuation of the property, making sure you don't have to pay more in inheritance taxes than is necessary.