Probate Referee as appraiser

[GoBears]

We are in the midst of settling an estate (with a will & trust), and the trustee used a probate referee for aprraisals, on two different occasions (date-of-death and 6 months later).

The intitial appraisal on one property, as land only, had a gross miscalculation of the lot size, inflating value by over $100k. And while it was appraised for just the land, he noted a two car garage, which is incorrect, it's a carport.

On the other real property in the trust, he states in his appraisal that it has as 6 car carport, and two paved, unsheltered spaces for parking. The reality is that this property has a 4 car carport, and no paved spaces for parking. And, the photos of this subject property are of an entirely different property! The only correct photo is that of the street scene...

I find this somewhat disturbing, and I seek some confirmation that I have good reason to feel this way.

Per the trust, there needs to be compensation for any difference in the value of these two real properties between the two beneficiaries, thus my concern. The trustee is a beneficiary...

I very much want to voice my disapproval over the these appraisals, but since it is the work product of a Probate Referee, is this futile? I found something called a Request for Special Notice form where one can contest various matters, including appraisals. Here is the form:

http://www.courtinfo.ca.gov/forms/fillable/de154.pdf

I appreciate your thoughtful input. Thank you.

 

[Mike Garrett RAA]

Contact the California Board of Real Estate Appraisers and pose your questions.

 

[GoBears]

Thank you Mike. I just looked them up, and got the phone number. I'm guessing they will be closed tomorrow, but I will try nonetheless...

For the record, and maybe I wasn't clear, but after I noticed the huge error in lot size, I contacted the probate referee, and after explaining how I got this figure, he agreed, and sent-out a revised report, with the exact square footage that I postulated, even though I think I was a tad off as one small portion of the lot is an arc line...

The trustee was not happy, and wanted to know how I found that the lot size was wrong. I of course explained, but it didn't go-over well...

Here's something else odd, I feel. Please hear me out, and be honest, if I'm making something of nothing...

When the first appraisals were done as of date-of-death (July 1, 2006), three comps were from Jan 2006, and a fourth in March 2006. The choices of land used didn't exactly seem ideal as two were special zoning for large complexes (one was near 250,000 sq-ft). Maybe that was all that was available... However, for the "alternate valuation" that can happen up to 6 months after date-of-death, he used the same comps as before to discernn that the value had not changed. This means that three comps were a year old, and one 9 months. A realtor friend found four land comps that sold in the past 6 months, with two in late Oct, and these were more appropriately residentially zoned, with more comparable lot sizes as well. I'm miffed as to why these would not be used for such a re-evaluation... The price per sq-ft indicates a decrease in land value.

For the other real property, the probate referee found that it had got down in value $100,000 (1.150 M to 1.050 M) in the past 6 months. Again, the appraised values are being used for not just estate taxes, but for distribution as well (delta between the two real properties). I don't see this mentioned in the appraisals, but maybe that is not necessary though...

Given my previous concerns regarding the first appraisal snafu (lot size error), I asked that if another is to be done on the alternate valuation date, that I want the selection of the appraiser to be joint decison. Having learned from past experiences, I got this in writing, in the form of a signed agreement. Despite this, the same probate referee was chosen again without my consent. The trustee's husband has a relationship and history with this probate referee, and I like to think that this is not signficant; but at times I wonder...

If you have time, I appreciate any insight you have. Thank you.

 

[Em Tee]

Tony:

It appears you've been having ongoing problems with this since you've been posting various issues about this estate. I think you'd be better off hiring professional assistance - maybe both an attorney and an appraiser.

 

[GoBears]

Mary, I was "allowed" to get an appraiser paid by the estate recently, and I was surprised to see that he is highly regarded on this forum!

The trustee keeps getting more appraisals, seemingly to serve their own needs...

I'm pushing for a meeting this week to discuss this and other issues. If not addressed to my satisfaction, I will unfortunately need to get a lawyer involved. I just need a reality-check that my concerns are valid ones deserving of such action as I don't want to go down this path, for several reasons, unless I've exhausted all other viable options...

The input here helps in that regard. Thank you.

 

[hastalavista]

Mary, I was "allowed" to get an appraiser paid by the estate recently, and I was surprised to see that he is highly regarded on this forum!

The trustee keeps getting more appraisals, seemingly to serve their own needs...
I just need a reality-check that my concerns are valid ones deserving of such action as I don't want to go down this path, for several reasons, unless I've exhausted all other viable options...

OK, Tony- here's your reality-check from my perspective:
Your situation, as you describe it, is significantly out-of-whack. I think you do need to get an attorney, only because your problems are now not only appraisal related but are probate/estate law related.

As to the appraisal issues:
A. If an appraisal is found to have such a material error as you describe, unless the appraisal is corrected and the rest of the information re-verified for its correctness, I don't see how anyone would consider it credible.
B. The photo errors you describe pertaining to the other appraisal assignment may or may not be significant to the valuation, but they certainly are significant to the credibility of the report.

It seems to me that you have been pushed/pulled along in this process, trying to work within the confines of the trustee instructions, and coming up with some unsatisfying results in the end. If you have no choice but to "go with the flow", then your questions are academic and our opinions are are the same. If you have a choice to not go with the flow, then I would exercises that option now, if and only if we are talking a meaningful difference in the allocation of estate proceeds.

Not much you have posted on this topic passes the basic smell test:
1. The Trustee's independence and impartiality is questionable.
2. The errors you point out in the appraisals are real, easily identified, and have a real consequence (in the case of the $100k valuation error).
3. Other than your concern that you post about, there doesn't seem to be much concern or interest in the other parties involved with the case.

This doesn't sound right to me; does it sound right to you?

I can't tell you what a probate attorney is going to cost to come in and represent your position. I would think it could be simply writing a demand letter ($2k), to more engaged representation ($25k+). If you think the potential value difference is worth spending this type of money, then I would do so.

Finally, this:
The appraisal errors you describe are not trivial. There could be a reasonable explanation for them, but if so, the errors should be corrected. If you are not getting the action you think these types of mistakes deserve, than I would most definitely encourage you to consider filing a complaint with our state regulatory agency (Orea.ca.gov).

Something is rotten in Denmark here. You really need legal assistance to make sure the intent of the estate's instructions (equal distribution) is being carried out.

Good luck.

 

[GoBears]

That's exactly what I wanted to hear! And I got a cool Hamlet quote to boot :happy:

Your input means a lot to me, and for one aspiring to join your ranks in semi-retirement, I am encouraged by what I see in many of you!

Thank you.

 

[Mike Kennedy]

tony - you're entirely welcome.

 

[Mike Boyd]

To add to Denis's excellent advice, my observation is that anything you do will result in counter measures by the trustee. You need an attorney who may have to petition the court for instructions relative to valuation. Probate referees are not invincible. Many have gone down for fraud, others have had to return assets.

 

[GoBears]

I'm glad to hear that probate referees are not untouchable. Thank you Mike. I'm becoming more and more convinced that his work is very unacceptable...

After looking at his appraisal for the property where he had the wrong photos, and misinformation about carports and parking spaces, I have no idea as to how he came to his final determination of value! He lists four comps, some data about them, and their sale prices. That's it. Adding them and dividing by four gets a little over $1.1M (the average), yet he concluded the value to be $1.05M, so he obviously made some adjustments, but nowhere is it explained what he did with those comps. So frustrating...

The trustee chose him again, despite our agreement that we would jointly decide upon an appraiser. I was just told yesterday that she didn't remember signing something to that regard, and said that if I want, I can get another appraisal on the property for which I am the beneficiary - the one where he had no new comps... She of course wants to keep the one he did on her property as he lowered its value $100k since July 06. As I just said, how he determined this is unknown, according to appraisal report...

The trustee said that she will contact the appraiser (probate referee) to see why he didn't use more recent comps. I'm waiting to hear back...

A lawyer might certainly be needed, I admit...