How Can a Real Estate Appraisal Help With Estate Planning?
Knowing the true value of any property you own is crucial for an efficient estate planning process. Even if you’re relatively sure of the current value of your home, having a real estate appraisal conducted is highly recommended. An appraisal can help you determine an accurate value, while also allowing you to sidestep any possible issues.
3 Reasons to Schedule a Real Estate Appraisal When Estate Planning
1. Appraisals Can Be Deducted From Your Taxes
Lowering your overall tax burden puts more money in your pocket and back into your estate. The good news is that a real estate appraisal is tax-deductible in most cases. Deducting the cost of an appraisal from your taxable income will lower the tax rate for your estate.
2. They Can Help You Develop Your Estate Plan
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f your home is your primary asset and you have more than one heir, chances are it will be liquidated after you're gone (provided you have no surviving spouse). In this case, knowing the value of your home is crucial to provide as much detail as possible within your estate plan. For example, if you plan on giving one heir more of your assets than another, knowing the value of your home will allow you to determine a specific figure.
3. They Reduce the Risk of an IRS Audit
If you overstate the value of your home and don’t have an appraisal to back up the number, the IRS could conduct an audit. Audits aren’t always a major catastrophe, but they can cost you quite a bit of time and money. You may even need to pay back the difference if it’s found that your home is worth less than you thought. With an appraisal, there is no guessing. You’ll be given its accurate value from an experienced appraiser.
An experienced real estate appraiser can benefit your estate planning process greatly. In Littleton, CO, Concept Appraisal Services has over 15 years of experience performing comprehensive real estate appraisals for their clients. Their date of death appraisals can assist families in sorting through a loved one’s estate, but they can also help property owners develop their estate plans by providing an accurate assessment when it comes to value. Schedule an appointment by calling (303) 506-6254 or visit the website for more info.
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