Appraisals and Probate Court Proceedings

Probate Court ProceedingsThere are many situations when an appraisal of personal property is needed for estates.  If someone calls and says “I need an estate appraisal”, a few additional questions should be answered so the proper service can be provided.  Depending on the circumstances, they may need an appraisal of the entire residential contents or just a specific list of items.  The intended use of the appraisal will guide us in the right direction:

ESTATE TAX:  Required by the Internal Revenue Service and many states.  If the total estate is over a certain value threshold (currently at $5 million), then everything needs to be appraised and valued as of the date of death (or alternate date).   The IRS requires a room by room inventory of the complete residential contents.  Items of low value under $100 Fair Market Value can be grouped together with similar items.   Many states follow the Federal level; however several states have a much lower threshold requiring an appraisal.

EQUITABLE DISTRIBUTION: To divide up items from the estate equally among the heirs.   This may require an appraisal of the total contents or a specific list of items, depending on the needs of the estate and the heirs.

ESTABLISH A BASIS: Valuing assets or a collection at a specific point in time can provide a benchmark so that the basis can be stepped up to the current value as of the date of death.  It can provide a comparison at a later time to illustrate growth or decline in value.

PROBATE:   The probate court will require an inventory and appraisal of the estate assets.

TRUST INVENTORY: The majority of estates are part of an established trust.   An inventory and appraisal establishes the value of the property at the time it became subject to the trust.

ESTATE PLANNING:  Planning for the future of an estate or collection is also important.  An appraisal can provide a valuable tool so that owners can plan in advance for tax, distribution or donation.  It can provide peace of mind for collectors to know how their treasured objects will be handled after they are gone.

Bernhardt Appraisal can be your advocate and consultant as well as your appraiser with Probate Court Proceedings.