Appraisers play a crucial role in various fields, including real estate, personal property, vehicles, jewelry, collectibles, art, and other assets.
After a death, when a deceased person's Estate is being Administered, an Appraisal may be needed to officially determine the value of the deceased's assets in order to complete various legal, financial, and administrative tasks.
Appraisers are typically certified or licensed and use recognized appraisal methods and principles to arrive at fair and defensible dollar valuations.
Appraisers can assist during estate administration and probate in many ways:
Asset Valuation: Appraisers are skilled in determining the fair market value of various types of assets, such as real estate, jewelry, artwork, antiques, vehicles, and collectibles. This is essential for accurately assessing the total value of the deceased person's Estate.
Estate Inventory: Executors or Administrators of the estate will need to compile a comprehensive Inventory of the deceased person's assets. Appraisers assist by providing detailed appraisals of each asset, which are then included in the estate's inventory.
Estate Tax Purposes: In many jurisdictions, estates above a certain value are subject to Estate Taxes. Accurate asset valuation is crucial for determining the estate's tax liability. Appraisers can provide the necessary valuations to ensure compliance with tax laws.
Equitable Distribution: When assets are Distributed to Beneficiaries or Heirs, it may be important to be equitable. Appraisals help ensure that assets are fairly divided, especially when there are multiple beneficiaries.
Sale of Assets: In some cases, assets of the estate may need to be sold to pay off Debts or distribute proceeds to beneficiaries. Appraisers can assist by determining the market value of these assets, helping to set appropriate sale prices.
Challenging Situations: If there are disputes or disagreements among beneficiaries or between the estate and Creditors regarding the value of assets, appraisers can provide objective and impartial valuations to resolve these disputes.
Specialized Assets: Some estates may include specialized assets, such as rare art or unique collectibles, for which standard pricing methods may not apply. Appraisers with expertise in these areas can provide accurate valuations.
Court Proceedings: In cases where the probate process involves legal disputes, appraisers may be called upon to provide expert testimony in court regarding the value of estate assets.
Beneficiary Guidance: Appraisers can provide beneficiaries with a clear understanding of the value of the assets they are inheriting, helping them make informed decisions about their inheritances.