Probate Appraisals

Why would you need a probate appraisal in Las Vegas?

In Las Vegas and Henderson, the Nevada probate court oversees probate administration to insure the equitable distribution of estate assets.

Real estate appraisers play an important role in the probate process to certify the fair market value of the real property assets. The ownership or title is changed from the decedent’s name so property can be transferred or sold. The real estate appraiser will insure property is valued correctly for tax purposes and determine step up value. Probate property is any property that does not convey by “operation of law” like, joint tenancy in real property, or by contract as in life insurance payouts.

How does a probate appraisal differ from a lending or mortgage appraisal?

• The definition of market value is different. For estates in probate the fair market value is determined by the appraiser as defined by the IRS. The Fannie Mae definition of market value is used for securing a mortgage with government-sponsored enterprise.
• Probate appraisal reports are completed “as is” which means that estate appraisals are not subject to any repairs like you may have experienced when having conditions imposed on you as a seller to complete before completing the sale.
• Lending real estate appraisal reports completed as current value whereas probate appraisals are typically appraised retrospectively or as of the date of death.

Since a professional appraisal is used to determine the values of a property for a client’s estate tax purposes. A probate appraiser must have knowledge of the local market and be able to provide a fair and accurate estimate of the property’s value. The appraiser’s opinion of value may be challenged by the executor or heirs of the estate, so it is important that the appraiser is from an appraisal company ready to go to a Clark County court if necessary. Once the property has been appraised, the executor can move forward with settling the estate. Selecting a qualified and experienced appraiser is essential to ensuring a smooth probate process.

Determining estate assets by the personal representative taking inventory of personal property community property non cash assets and other assets can be daunting after a decedent’s death. Collecting accounts and account numbers, filing a petition, finding a law firm that can explain state law, or figuring out which household furniture beneficiaries want to keep or sell are personal representative duties that may become overwhelming.

There are 4 types of probate administration in the state of Nevada.

The probate process can be simple or complex, depending on the size and value of an estate. It typically only takes a few weeks for simpler cases, but larger ones could take months or more to complete.

1. General Administration: When an estate exceeds $300,000 in value it must go through a full probate estate process and is administered by a person who has been appointed by the court as the personal representative. The courts will need to approve of most actions taken by the personal representative who is assisted by a law firm with a probate attorney.
2. Summary Administration: If the net value of your estate is $300,000 or less than a shortened estate process can be used. This is when you don’t need approval for all actions there are exceptions regarding notice requirements and proceedings.
3. Set Aside Estate: Is when the net value is $100,000 or less. In this case the assets can be distributed by an order from the judge.
4. Small Estate Affidavit: Can be used then the estate is equal to $25,000 or less and does not include real property. Estate beneficiaries may make a claim through the submission of an affidavit. The limit is raised to $100,000 when the submission is made by a surviving spouse.

How should I prepare for the appraisal?

Please don’t clean the house, make repairs, or fix anything! Going through your loved one’s belongings can be very emotional and we encourage you to concentrate on healing yourself. Our appraisers have experience in properties that have not been maintained or have severe deficiencies. We must assume the condition as of the date of passing in most cases so current repairs are not accounted for anyway. You don’t need to be present when we come out to take pictures of the house and measure. All we need is a key to the front door.

How much money does a probate appraisal typically cost in Las Vegas and Henderson?

The scope of work and the definition of market value is different from lending appraisals, but the appraisal process is the same. For typical properties we charge $500-$800. Complex properties or homes that need more than one effective date our fee starts at $1,500. We also offer professional appraisal services without having to enter the property. Sometimes the property has already been sold to another party, but an appraisal is requested by an accountant or financial planner to define the step up value. Our appraisers can appraise properties retrospectively with effective dates ranging from 3 months ago or 30 years ago.

Determining an estate’s assets is a critical part of the probate process. The purpose of hiring independent experts is to establish the fair market value of the real property to determine the inheritance tax liability and change title. If you are appointed as personal representative or executor, it is important to understand how a probate and non probate assets are appraised.  Our team of licensed appraisers understand the probate process and will work closely with you to ensure a timely, professional appraisal report is completed that meets your needs.

Please contact us if you have any questions about real estate, we have a list of attorneys and law firms that specialize in probate estates. We are here to help!