Appraising the Estate

There are some important considerations when it comes to appraising the estate. An executor or administrator must return an inventory and appraisal to the Probate Court within three months of the appointment. But it’s important to consider how to do the appraisal.

Ohio law permits an estate to use the county auditor’s value for real property in the estate. Even though there is no fee to use this figure, it may not be the best option. The county auditor’s value of the property might be high or low. Remember, the auditor’s appraisal staff does not go inside a home when they calculate their value. So if a home has a brand new exterior, but is gutted to the bare floor and studs on the inside, the value could be too high. An executor or administrator can only sell at 80 percent of the appraised value on the inventory. So you don’t want to submit a figure that is too high.

On the flip side, the county auditor’s value of the property might be too low. Maybe the interior of the home has been fully renovated and updated. The county auditor might not know about this.

There are capital gains taxes that get assessed based on the sale of estate owned property. A proper appraisal is going to minimize the capital gains taxes for the beneficiaries. If there is no will, it may be best to hire an appraiser to get the proper value on the real estate. If there is a will, and the property is going to be sold, it might be best to seek permission from the court to use the sale value of the property as the value on the appraisal. This is why probate is easier and cheaper with a will than it is without.

Don’t botch the process of appraising the estate. It’s just too costly.