We recently discussed how seriously you should take the valuation of an estate. This is a huge factor, especially when there are issues with will contests or claims against the estate. We understand that you might not understand exactly what you need to do. We are here to help you learn about estate valuations and develop a plan to get this taken care of.
When dealing with a probate issue, one of the things that you will have to find out is the value of the estate. There are many things that go into this. It is important for anyone who is involved with the estate to understand these points.
Date of death estate valuation refers to the value of an asset or group of assets on the day that someone passes away. Date of death estate valuation is typically calculated using the "fair market value" of the asset at the time the person who owns it passes away. While it sounds simple enough, if you've ever sold something like an automobile, you know that fair market value is a subjective measurement, which is one reason that it's helpful to consult an experienced pro if you're trying to value your own estate or working as an estate administrator to handle tax matters.
When it comes to the value of your family heirlooms, there are actually two types of valuation to consider. The first is the emotional value that items might have to your family or to certain individuals within your family. You'll also want to consider the actual monetary value of pieces so that you can appropriately insure them and integrate them into your estate planning.
Art is a volatile commodity. What one painting is worth today isn't the guaranteed value tomorrow, and that can make inheriting an art-heavy estate an adventure in valuation and taxation. According to reports, the Internal Revenue Service does look at estates that include art appraisals that come in above $50,000. When the IRS gets involved, it's not uncommon for them to request an adjustment in value that can result in higher tax liabilities.
Probating a will can be as complex as the initial creation of a will. As an estate attorney, there are many steps we can help you take to ensure that a decedent's assets are properly valued, allocated and dispersed. The first step we can help you with is inventory and appraisal.
If you own a family business, or interests in a family business, you may want to pay attention. The Internal Revenue Service has been looking closely at, and may be ready to take action, on reducing or eliminating valuation discounts.
While it's a good idea for both spouses in a household to participate in handling the finances, the reality is that usually one spouse deals with most of the money matters, from paying the bills to managing retirement accounts.
In the simplest terms, estate planning is two-fold: numerical and emotional. Your estate has to be inventoried and accurately valued, and assets have to be distributed in such a way that limits the emotional burden placed on your heirs. This emotional aspect can be particularly tricky in some cases, and you may have to ask yourself some important questions to come to the right decision.
Step one: do the planning. Too many families are thrown into frustrating, time-consuming, expensive probate disputes because a comprehensive estate plan simply wasn't in place. You can start with a detailed list of assets with a name by each to indicate who should receive what. Your attorney can help you with this, as well as with estate valuation and the proper documents to ensure a smooth and smart distribution to heirs.