[WSBAPT] Valuation of Real Property Owned by an Estate

[Marcus Fry]

Inge:
My 2 cents.

I would get a current market analysis (or broker’s opinion of value) for the realtor (some do it for free others charge $50-$150) and then have the PR communicate with the other heirs to see if there is any disagreement with regard to value.  Saves the cost of a formal appraisal if there is no dispute based upon the CMA/Broker’s Opinion.  I would use current value for the purposes of distribution rather than date of death value.  No different than $100000 sitting in the estate account at death, and then being worth $100,500 at time of distribution.

Note: Not a big fan of the PR leaving decedent’s loan in place for decedent’s granddaughter.  Make sure you send NTC to lender and make sure granddaughter provides proof of homeowner insurance to provide as much protection to PR as possible.  I would say get an indemnity, but given that granddaughter has poor credit, may not be worth anything.


Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Inge Fordham
Sent: Tuesday, November 03, 2020 2:56 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Valuation of Real Property Owned by an Estate

That’s my thought as well.  Just wanted to see what other folks do under these circumstances.  For purposes of determining estate income tax, do we need an appraisal for the value at date of death and at also at date of disposition?  I’m not an accountant, but my understanding is that an increase in the value of the property in excess of $600 in a calendar year triggers estate income tax.


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Eric Nelsen <Eric at sayrelawoffices.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Tuesday, November 3, 2020 at 2:42 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Valuation of Real Property Owned by an Estate

For purposes of valuing a distribution to the granddaughter, where other beneficiaries could be prejudiced if it's misvalued, I would get a certified appraisal. I never used assessed value for these situations.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Inge Fordham
Sent: Tuesday, November 3, 2020 2:16 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Valuation of Real Property Owned by an Estate

Colleagues:

In past probate cases I have handled with real property owned by the estate, the PR or administrator has either sold real property or conveyed it to a sole beneficiary.  I now find myself dealing with a situation where the estate owns a townhome in which the granddaughter (one of several beneficiaries under the will) is living and would like to retain.  It is encumbered by a mortgage and unlikely the granddaughter can get approved to refinance or assume the mortgage.  How does the PR determine the net value of the townhome - it varies widely depending on whether the value is determined by the tax assessed value or appraised value.  I have seen attorneys use both.  Is there a bright line rule?

Thank you,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

Confidential Communication: This email is sent to a recipient on behalf of an attorney/law firm, and is information intended exclusively for the individual, entity or company to which it is sent.  This communication may contain proprietary, privileged or confidential information or may otherwise be legally exempt from disclosure other than to the intended recipient.  If you are not the named addressee, you are not authorized to read, print, retain, copy or otherwise disseminate this message or any part of it.  If you have received this email in error, please notify the sender immediately by email or other communication and delete all copies of the message.
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