If you are in the position of selling a home held in a trust, you will soon find that there are unique intricacies to the process. If the final owner – or grantor – of the property has passed away, it might be time to look into an appraisal. Below, we will outline some of the most common questions about appraisals in this unique circumstance.
What is an appraisal?
First off, let’s establish what an appraisal actually is. In short, an appraisal is simply the process of establishing the value of a property. Appraisals are almost always required in Real Estate transactions, as every house, property, and neighborhood is unique.
Are appraisals required after the death of the final grantor?
The short answer to this is yes. There are two main reasons the IRS mandates appraisals after the death of a grantor. First, this is what determines the value of the property. Second, an appraisal forms the basis of the estate that is in the trust. The results of these two factors can determine important tax information and add value to a trust for the beneficiaries.
How long after the date of death do I need to have the appraisal done?
The good news is that there is no set time after the date of death in which an appraisal must be completed. This means that the seller is able to take advantage of the market and tax benefits that will be most profitable. That said, a trustee has two options for the date of appraisal: the date of death of the last grantor or six months after the date of death. It is also important to keep in mind that appraisals must be completed for tax return purposes.
What if I have a highly-valued property?
If your estate is valued highly, this is where a tax consultant will come in handy. They can help you navigate the estate tax and capital gains tax factors to help you maximize your benefits and cut costs.
I need help. What can I do?
At American Real Estate, we understand the intricacies, the nuances, and the ins and outs of the appraisal process. We are here to consult and help, so that you do not have to navigate this undertaking alone. Give us a call, and we can get started right away.