Understanding Estate Tax Valuations with the Help of Estate Appraisers in Napa County, CA

February 3, 2017 2:39 am Published by Leave your thoughts

Dealing with the death of a family member is tough, and this hardship is even more difficult if you have to deal with the handling of a large estate that includes multiple acres of land, or even a vineyard or winery. Whether you plan to sell this land or keep it in the family, having an estate tax valuation performed by certified estate appraisers in Napa County, CA will be a key first step in the process.

What is estate tax valuation?

If a family member owned any real estate or property that was large enough to require taxation by the government, a valuation of all of their assets must be conducted by an appraiser to determine the gross net value of their estate at the time of or shortly after their passing. Any equipment that might have been purchased for the operation of the vineyard or winery must be included in this valuation, in addition to any growing or harvested crops. After the gross estate value has been calculated, the amount of the estate that is liable to taxation is determined, and the estate tax is computed and assessed from the compilation of this information.

Why is this valuation so important?

As a part of this valuation process, the fair market value of any property is established, and it is only then that the amount of taxes that will need to be paid out by either an heir or a new buyer can be determined. This valuation also plays an integral role in helping to finalize the listing price if the property is to be sold. If the inheritors decide to keep any bequeathed land, the acquisition of this land could change the way that they are required to report to the IRS. Ultimately, all future transactions will be held up until this valuation is completed. The estate tax valuation could also prove to be critical for any probate proceedings, so having an appraiser put together sound information that can be used in a courtroom will be beneficial as well.

In many cases, the fair market value is to be calculated as of the exact date of death of the decedent, but during this difficult time you understandably have many other things on your mind. If you aren’t able to have the property appraised right away, take photos and record as much pertinent information about the land as you can to provide testimony of the condition of the property at this time, and to help facilitate the appraisal process in the future.

In order to make sure that all of the estate’s holdings are in line with IRS regulations, you will need a certified and licensed appraisal company. Having provided real estate, vineyard, winery and acreage appraisals for nearly 10 years, County Appraisals Inc. is a trusted team of estate appraisers in the Napa County, CA area, and our experience appraising different types of land makes us the perfect choice to handle your estate tax valuation. Give us a call to learn more about our appraisal services.

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