Estate Appraisal

Estate Appraisal Services

Our primary focus is on the appraisal of real estate for trusts, estates, gifts, estate planning, FLP’s, LLC’s, estate liquidations, partnership assets, wills, probate, Q-Tip trusts, and charitable gifts. Our California appraisers provide unbiased appraisal opinions of residential, industrial, and commercial real estate. We are committed to providing professionally prepared tax compliant valuations and fractional interest discount opinions according to the new proposed tax regulations and IRS Real Property Valuation Guide Lines. Our clients include estate planning attorneys, law firms, accountants, CPA and CFP firms, enrolled agents, lawyers, trust administrators, executors, beneficiaries, court appointed receivers, corporate, and partnership entities.

Our professional estate planning valuation services cover all areas throughout Los Angeles County, Orange County, Riverside County, San Bernardino County, San Diego County, and Ventura County.

Tax Planning and Choosing an Estate Appraiser

Estate planning and wealth preservation professionals should be aware that new proposed estate regulations (26 CFR part 1) require taxpayers to obtain a qualified appraisal and attach it to their estate return in which the deduction is claimed.  The new reporting and substantiation requirements include deductions for real estate charitable contributions reported on tax returns 1040(E), 1041,8939706 or 7091099-R and 5498.  In addition, the IRS proposed amendment requires a qualified appraisal by a qualified appraiser and will apply to estate tax returns filed after August 17, 2006 sec. 1.170A-17.  For returns prepared on or before August 17, 2006 Section 1.170A-13(c) of the current regulations applies. The IRS requires well documented appraisals prepared by an appraiser who holds a designation from a qualified appraisal organization with specialized experienced in the real estate being appraised in accordance with IRS Real Property Valuation Guidelines.

Estate tax planning administrators and estate tax attorneys need to know when choosing a qualified appraiser for gift tax returns, death taxes, estate asset protection, trust planning, and probate matters. An administrator, beneficiary, or trustee should find a appraiser experienced in residential, apartment, industrial, or commercial real property that is knowledgeable in estate planning valuation issues and IRS Real Property Valuation Guidelines. Treasury Regulation Section 20.2031-1(b) requires the appraiser to follow certain real estate valuation guide lines and prepare “qualified” appraisals for tax returns. This includes estate returns forRetrospective date of death valuationsInsurance Casualty Loss Disasters, gifts,charitable trusts, and other tax issues of a decedents estate. Moreover, the appraiser must be “qualified” under regulations proposed in Section 1.170A-17 and should be able to qualify as a real estate expert witness. Additionally, information that should be stated in the appraisal is set forth in IRS Rev. Proc. 66-49, 1966-2 C.B. 1257. For example, utilizing the correct definition of “Market Value”, “Use Value”, “Fair Market Value”, “Intrinsic Value”, or “Investment Value” means the difference between a disputed appraisal and one that is prepared correctly. Anselmo v. Commissioner, the Court states there is no distinction between the measure of “Fair Market Value” for estate and gift tax purposes and charitable contributions for real estate. In addition, Rev. Proc. 79-24, 1979-1 C.B. 565 indicates guide lines for the “Market Approach” also known as the “Market Comparison Approach”, better known in appraising for federally related transactions as the “Sales Comparison Approach”. Similarly, Rev. Rul. 68-609, 1968 C.B. 327 provides the general approach, methods and factors outlined in Rev. Rul. 59-60, 1959-1 C.B. 237.

When reviewing you estate tax with your attorney or tax accountant, it is also wise to avoid submitting a residential or commercial appraisal with your estate return that is more than two years old and does not meet other specific IRS filing guide lines. Additionally, when reviewing a commercial estate appraisal, the IRS looks at the accreditation of the appraiser, the rationale of the “Fair Market Value” opinion, the validity of the comparable research, and the overall professionalism of the report. In preparing an appraisal for estate planning purposes the IRS requires the appraiser to follow specific appraisal guidelines and IRS Real Property Valuation Guidelines. In addition, when valuing partial or fractional interests  (Use of Blockage and Lack of Marketability Discounts) it is important to provide a well documented report with the appropriate valuation techniques.

It is equally important that you select an appraiser for your estate tax planning needs who has the experience and knowledge necessary to prepare estate planning appraisals for returns according to IRS guidelines. We believe appraisals prepared or supervised by a designated Member of the Appraisal Institute provides you with the highest quality real estate reporting in the industry. Appraisal Institute members hold the highest appraisal industry designations and have the necessary educational background and years of real estate experience needed for residential and commercial appraisal work.

For an estates that includes gifts of California real estate in a charitable trust establishing “Fair Market Value” (FMV) is essential in substantiating and reporting deductions for charitable contributions under section 170(f)(11) and measuring the lifetime income of planned gifts under a trust. All donations of $5,000 or more require a qualified appraisal. Section 155 of the Deficit Reduction Act of 1984 requires a qualified appraisal for certain contributions of property made after December 31, 1984. A helpful resource is IRS publication 561 Determining the Value of Donated Property, which describes the protocol in detail, including the procedures for real estate appraisers, content of appraisals, etc. The donor must complete IRS form 8283 (signed by NHF) and file this form with his/her return for the year in which the gift of real estate is claimed certain trusts and estates. A copy of the qualified appraisal it typically attached to form 8283 for estate tax filing, which is also signed by an appraiser.

Settling an estate usually requires an appraiser to establish an opinion of “Fair Market Value” (FMV) for the residential or commercial real estate involved. Often, the date of death (effective date of the appraisal) differs from the date of the inspection. Our commercial appraisers are familiar with the procedures and requirements necessary to perform a retrospective forensic appraisal with an effective date and a “Fair Market Value” opinion matching the date of death. The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.

Many tax attorney’s, estate planning professionals, accountants, enrolled agents, and Certified Financial Planning professionals involved in real estate planning, trust administration, probate and wills, and IRS estate return filings rely on our appraisal services when they need an expert to complete an accurate “Fair Market Value” (FMV) opinion for estate planning, tax planning, divorce, probate & wills, partnership planning, dissolutions, bankruptcy, arbitration, mediation, or other disputes requiring a valuation of real property. We understand their real estate needs and the needs of estate planners and all parties involved. We believe our expert certified and licensed residential and commercial appraisers provide appraisal reports that meet the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the courts, IRS filing guide lines, and various agencies.

Typically, residential or commercial estate planning valuations for estates and trusts require a retrospective appraisal which requires more research than typical commercial appraisals and therefore requires a fee quote. In the event of a challenge on an estate valuation from the IRS the following applies. Any changes outside of minor corrections after the original residential or commercial estate planning assignment has been completed is billed at $300 to $400 per hour. After the date of completion of an appraisal any follow up may be considered a new assignment. The appraiser is not required to provide consultations with accountants, attorneys, IRS, real estate planner, tax accountant, real estate lawyer, expert witness testimony, or litigation support services without a separate written agreement sign by both parties and the payment of a fee.

Real Estate Law regulates the buying and selling of residential or commercial property and commercial leases. Lawyers are necessary to assist in the settlement of common real estate disputes involving view obstruction, construction defects, landslides, detrimental easements and encroachments, maintenance of condominiums and cooperatives, establishing property title and boundary lines, zoning and property land use, buyer and seller disputes, real estate broker negligence. A Real Estate attorney who also handles real estate law and has knowledge of the financing aspects of real property, such as mortgages and foreclosures.

There are many types of CPA’s and accountants. You should find one that specializes in real estate planning.  A highly trained accountant one trained in real estate is a must. They must be available to meet with you to prepare and plan your estate and required documents for IRS filing.  A good public accountant can also help you with proper end of the year estate planning. There are many types of planning professionals for educational expenses, partnership, distribution of assets, dissolution, probate, business succession and many other types of planning. A good accounting professional knows the value of a good appraiser.

Fractional interest appraisal explained.  If 5 siblings inherit a parcel of land together as tenants-in-common, each sibling has a 20% undivided interest in the entire property. As a result, such an interest is frequently called a “fractional interest.” The Internal Revenue Service and the courts both have approved fractional valuation discounts in property held as tenants-in-common. Based on court precedents, lack of marketability and minority interest discounts have been found to be appropriate in valuation of real property. This means a client may gift a fractional interest in a commercial property or vacation home to family members at a reduction equal to the value of the discount.  An estate planning client may need to gift away property quickly as a result of a sudden change in health status.

Disclaimer: All information that we provide on our web site is of a general nature. It is not intended to address the circumstances of any particular individual or entity. Even though we strive to provide accurate and timely information, we do not guarantee that such information is accurate. No one should act upon such information without appropriate professional advice after a thorough examination of the facts of their particular situation.

We are not attorney’s, tax experts, trust administrators, financial planners or accounting professionals. The above is not intended to give advice on legal, financial, or accounting matters. Please check with your professional advisor for information regarding said matters.  We are professionals in Los Angeles Estate & Property Valuation.

Fraud receivership case valuations.  We can provide a second opinion of a probate referee appraisal. Valuations for contested partition actions.  Asset valuations for conservatorship and guardianship. Inheritance tax appraiser for distributions, Insurance policies, Judgements and ongoing litigation, Minority Discounts

Estate Appraisal services of real estate for Los Angeles estate planning professionals including CFA, FRM, CLU, CHFC, administrators of wills, probate, and planners which includes

Los Angeles Estate Valuation Services For Estate Attorneys Los Angeles Accountants
Estate Tax Valuations For
Living Trusts
Wills
Durable Power Of Attorney
Advanced Healthcare Directive (Living Will)
Notaries
Special Needs Trusts
Medi-Cal Personal Residence Trusts
Irrevocable Life Insurance Trusts (ILIT)
Qualified Personal Residence Trusts (QPRT)
Charitable Remainder Trusts (CRT)
Qualified Domestic Trust (QDOT)
Grantor Retained Annuity Trust (GRAT)
Qualified Terminal Interest Property Trust (QTIP)
Business Formations: Corporation or Limited Liability Company
Corporate or LLC

 

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