Estate Appraisals
An estate appraisal is utilized in the administration of the estate of a deceased individual to establish the payment of inheritance tax or for equitable distribution of estate property among heirs. The estate appraisal is based on the Fair Market Value as defined by United States Treasury Regulations 1.170 and 20.2031 (b) as follows: “The fair market value is the price which a willing buyer would pay to a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.”
Fair Market Values
Fair Market Values are not liquidation values, as defined, which refers to deeply discounted, time sensitive, cash sales that an item, in its current condition, might fetch. In either instance, the amount potentially realized depends on timing, market fluctuation and buyer interest.
We work with legal and accounting professionals in providing detailed and accurate inventories and values. As with any other appraisal, the examination is conducted in your presence. Clients will often bring in boxes of inherited items. We work very quickly in determining which items are of value. All items are examined, valued and bagged separately. Those items whose Fair Market Value meets the threshold for itemization are documented separately. A cover letter addressed to the Executor or Personal Representative is included with an estate appraisal.