Legal Question in Wills and Trusts in Louisiana
Methods for valuing home
Would appreciate advice on acceptable methods for valuing a home in Louisiana for succession and IRS basis purposes? The value of the gross estate is less than $300k. Is it ok to use insurance replacement cost or property tax value instead of a formal appraisal? Does the fair market value of the home shown in the succession plan need to match the cost basis filed with the IRS upon the sale of the house? The reason for my question is that we would like to start the succession without the money or time spent on a formal appraisal. However, if there are capital gains tax issues that arise upon the sale of the house following the succession, we would like the flexibility of obtaining a formal appraisal to better estimate the fair market value at the time of death.
Many Thanks
2 Answers from Attorneys
Re: Methods for valuing home
These questions are much too complex to address on an internet website. You should find a good CPA/Attorney to assist you with this. Sounds like it might be worth it to you. Good Luck
Re: Methods for valuing home
Neither replacement cost nor property tax assessment will give an accurate valuation.
For little or no cost, a licensed real estate broker can give you a Broker's Price Opinion as to the value of the property. If need be, you can always get a formal appraisal later.
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