Appraisal for Estate Planning purposes

[Pinab]

Hi! I am working on my 1st Estate Planning Appraisal. Any and all information, samples etc are welcomed. I took a class on it online but still need guidance. TIA

 

[Terrel L. Shields]

Estate Planning? Or Estate valuation?

Date of death value

As is - no "subject to" statements or demands for repairs

Use the IRS definition of market value and don't use the Fannie Mae forms.

 

[Pinab]

Estate Planning? Or Estate valuation?

Date of death value

As is - no "subject to" statements or demands for repairs

Use the IRS definition of market value and don't use the Fannie Mae forms.

Thank you. Estate Planning of Residence and other RE- As is- The GP from or GPAR?

 

[Terrel L. Shields]

The GP from or GPAR?

I only write narratives but a general purpose form is usable for residential property.

 

[Meandering]

Is the estate considering moving real estate into a "trust"?

Ask.
Narrative.
make sure the statement of value opinion is valid only for the day XX/X/XX, and could be different on any other day, is prominent in the report.

.

 

[DWiley]

Don’t forget the Competency Rule. Have you disclosed to the client your lack of experience with this type of work?

 

[Mark K]

If the subject property is non-complex, say similar to most lending assignments, this is not a difficult assignment. Use a General Purpose form, forget Fannie guidelines, and write it up.

Thank you. Estate Planning of Residence and other RE- As is- The GP from or GPAR?

...and other RE....? what type and how many?

Depending on the type and number of properties, a narrative may be the best approach.

I've done many of these. The client generally needs a valuation for the RE as of the date that the property is put into a trust. This valuation will be used as a basis for gain/loss calculations in the future.

 

[bnmappraisal]

Yes, do NOT use the current 1004 URAR - use a GPAR (found in Total/A La Mode) or other similar form

 

[ZZGAMAZZ]

Always ask the client for the "Effective Date," which could be contemporaneous or retrospective, and if the latter make sure you review USPAP and USPAP-related AO's and FAQ's. Keep in mind that a lay client might not understand the question.

 

[bnmappraisal]

Keep in mind that a lay client might not understand the question.

Good point Gama.
I always try to make sure my private/non lending clients understand some of our terminology we are accustomed to using daily (i.e. Effective date, Intended User, Intended Use, etc)

I try to break them down into layman's terms (i.e. Intended User - "people I can discuss the report with")