Tips for Estimating the Value of a Deceased Person’s Real Estate
If you are the executor of an estate that includes a house or another piece of real estate, you will need to figure out exactly how much it is worth. The value of the property could affect estate taxes, along with the probate and asset division processes.
In many cases, inheritors will put the property on the market quickly to sell it. This will give you a good idea of the fair market value of the property, as well as an easy way of agreeing on a dollar figure to divide among inheritors. If you sell the house within the first six months to year after the death of the previous owner, the IRS will typically accept the sale price as the fair market value at the time of death, assuming the sale was conducted fairly. You might run into issues with the IRS if you gave a price well below market value to a family member as a favor, especially if other estate beneficiaries complain about this transaction.
Getting an estimate on value
If you choose to hold onto the property, you still need to get an estimate of its value from real estate against or professional appraisers. Once you have had a professional give you a value estimate, you can determine how much money each beneficiary’s stake is worth. Beneficiaries can then decide whether they want to sell or give up their stake to others, or hold on to it for themselves.
The executor will still be in charge of figuring out exactly how beneficiaries will use the property, but getting the value estimate for the property is a good first start when dealing with inherited real estate.
To learn more about how real estate could affect estate planning and administration, contact a skilled Orlando attorney with Gierach & Gierach, P.A.