Table of Contents
Key Takeaways
Why Appraisals Matter in Estate Administration
Who May Need an Appraisal During Probate or Trust Administration
Common Situations That Require an Appraisal
How the Probate Referee Appraises Property in California
Related Resources
FAQ
How The Grossman Law Firm Can Help
Key Takeaways
- California probate often requires appraisals to determine the fair market value of estate property.
- A court-appointed Probate Referee typically handles appraisals for probate estates.
- Appraisals are necessary in situations such as sales to relatives, partitioning property among heirs, or establishing tax basis.
- The Grossman Law Firm assists beneficiaries and heirs in navigating appraisal requirements and enforcing their rights during the estate administration process.
Why Appraisals Matter in Estate Administration
When a loved one passes away, estate administration can feel overwhelming. One of the critical steps is determining whether the property requires an appraisal. Appraisals establish the fair market value of estate assets and ensure that the personal representative or trustee properly accounts for all property during probate or trust administration.
At The Grossman Law Firm, Attorney Scott Grossman regularly guides heirs, beneficiaries, and personal representatives through appraisal requirements in California probate matters.
Who May Need an Appraisal During Probate or Trust Administration
Several parties involved in estate or trust administration may need to address the appraisal of property:
- Attorneys administering estates or trusts.
- Accountants or enrolled IRS agents
- Executors, administrators, or personal representatives of estates
- Trustees of trusts
Whether you are a personal representative or a beneficiary, it is essential to understand when and why appraisals are required under California law.
Common Situations That Require an Appraisal
Not every asset in an estate needs an appraisal, but California law requires one in certain situations. You’ll typically need an appraisal when:
- The estate sells property to a relative of the decedent
- Real estate must be divided among several heirs or beneficiaries
- You need to establish an asset’s tax basis for capital gains purposes
- The estate sells property to a third party
- Real estate is listed for sale on the open market
- Gifts made during the decedent’s lifetime need to be valued
- The estate is large enough to trigger federal or state estate tax reporting
If you’re not sure whether an appraisal applies to your situation, The Grossman Law Firm can review your case and explain your options.
How the Probate Referee Appraises Property in California
Under the California Probate Code, each county appoints a Probate Referee to appraise estate property, excluding “cash” items such as bank accounts. Once the Probate Referee completes the valuation, the personal representative files the Inventory and Appraisal (Forms DE-160 and DE-161) with the probate court, which officially establishes the estate’s value for accounting and distribution.
Related Resources
- Overview of the California Probate Process
- Types of Petitions for Starting a California Probate Administration
- The Inventory and Appraisal Form Explained
- Can’t Afford a Probate or Trust Attorney?
FAQ
Q: Do all estates in California require appraisals?
A: No. Appraisals are typically required when real estate or significant personal property is part of the estate. Smaller estates with limited assets may not need a formal assessment.
Q: Who pays for the appraisal in probate?
A: The cost of the Probate Referee’s appraisal is paid from estate funds as part of the administration expenses.
Q: Can beneficiaries dispute an appraisal value?
A: Yes. Beneficiaries who believe the Probate Referee’s valuation is incorrect can raise objections in probate court.
Q: Are trusts required to obtain appraisals?
A: Yes, in some situations. Trustees may require appraisals for tax purposes, when selling to relatives, or when dividing property among beneficiaries.
How The Grossman Law Firm Can Help
At The Grossman Law Firm, we assist beneficiaries and heirs throughout California in enforcing their rights in probate and trust litigation. Whether you are a personal representative seeking guidance on appraisals or a beneficiary concerned about the valuation of estate property, we can help you navigate the process with confidence.
Call (888) 443-6590 or fill out our Get Help Now form today.
Our Intake Specialists can evaluate your case at no cost to you to assess your situation. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.