how can an appraisal help the attorney with structuring an estate plan

by Trever Bartoletti 5 min read

4) An appraisal can assist the attorney in structuring an estate plan- It is helpful for an attorney to know the value of your real estate when they are structuring an estate plan. An appraisal will give them the current fair market value, however, this can be updated in the future to reflect the current market and home values in the area.

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How many steps are there in estate planning?

What is a solid estate plan?

What is a living trust?

How to keep costs down when someone dies?

What is a living will?

Do estates owe federal taxes?

Do living trusts have to go through probate?

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What appraiser looks for when doing appraisal?

Appraisers look at the size, shape and topography of the lot, including easements and encroachments. The appraiser will also note amenities such as street utilities and vehicular access. Part of the evaluation process includes an opinion of whether the home's characteristics are compatible with the market.

Is a real estate appraisal a legal document?

Appraisals may be needed and sometimes even required in certain situations. Generally speaking, they commonly become a part of legal proceedings that involve: Foreclosure proceedings. Issues with property taxes.

Does staging affect appraisal?

Invest in Staging If curb appeal is low, the home starts off at a lower appraisal score. Investing in hiring a certified Staging Design Professional™ is a guaranteed way to make sure both curb appeal and the interior space look fantastic, and so, worth more to buyers and appraisers.

What should I fix before appraisal?

Clean the landscape, clear debris from your yard, trim the hedges and clean the gutters to make your home more attractive. Make minor repairs - Small fixes, such as touching up chipped paint or replacing a broken doorknob, can also help add to a home's value.

What are the 3 types of appraisal reports?

The Uniform Standards of Professional Appraisal Practice set forth the requirements for appraisal reports, which may be presented in one of three written formats: self-contained reports, summary reports, and restricted-use reports.

What are the three types of appraisals?

There are three primary types of real estate appraisals that may be used, including the "cost approach," the "sales comparison approach," and the "income capitalization approach."

Does a messy house affect an appraisal?

The short answer is “no, a messy home should not affect the outcome of an appraisal.” However, it's good to be aware that there are circumstances in which the state of your home can negatively affect its value.

What negatively affects home appraisal?

One of the big things that can have a negative affect is the age and condition of the home's systems (HVAC, plumbing) and appliances. If the local market is declining, that'll also hurt your home's appraised value.

What hurts a home appraisal?

What Affects Home Appraisal? The appraiser takes your home's features, age and condition, then compares it to other similar homes in the area and what they sell for. Because your home's value is based on the value of similar homes in the area, the local market will have a big impact on your appraisal.

What is looked at during an appraisal?

While conducting the appraisal, the appraiser will take pictures of all rooms in the home, the garage, and the outside of the home. They will also measure the home and examine its overall condition, upgrades, amenities, and any other aspects of the home of note.

Does a clean house affect an appraisal?

Unless the amount of clutter begins to affect the structural condition of a home, it will not affect an appraisal. The cleanliness of a home also has no impact on the value. It is not uncommon for an appraiser to walk into a cluttered, messy home.

What does a C4 rating mean on an appraisal?

C4. The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires. only minimal repairs to building components/mechanical systems and cosmetic repairs.

What is the difference between a bank appraisal and real estate appraisal?

A real estate appraisal will include a listing strategy, whereas a bank appraisal will not. During this process, the realtor will often also go over their marketing plan for their home, set expectations on the listing process, and answer any questions you have.

What is legal appraisal of a project?

Appraisal involves a careful checking of the basic data, assumptions and methodology used in project preparation, an in-depth review of the work plan, cost estimates and proposed financing, an assessment of the project's organizational and management aspects, and finally the viability of project.

What standards do appraisers follow?

What is USPAP? The Uniform Standards of Professional Appraisal Practice (USPAP) is the generally recognized ethical and performance standards for the appraisal profession in the United States.

What does appraisal mean in real estate?

A home appraisal is a process through which a real estate appraiser determines the fair market value of a home. It can assure you and your lender that the price you've agreed to pay for a home is fair. Appraisals are also often used to determine property taxes, which makes them a requirement in most counties.

Estate Planning: 12 Simple Steps | Nolo

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6 Estate Planning Must-Haves - Investopedia

What you need to know in your estate planning even if you do not have significant assets. Here are six key ideas for a successful asset transfer.

Create a Trust or Will

One is to create trust. You can use an NJ trust to hold assets, provide for heirs, and avoid probate. Another is to make a will that includes a pour-over provision. This provision directs any assets not placed in the trust to be transferred to it at the time of your death.

Give Power Of Attorney to Your Spouse

Another way to make your estate plan more sophisticated is to provide your spouse with power of attorney over all your assets during their lifetime. This will give your spouse the authority to make decisions about your finances and property if you cannot do so yourself.

Include a Letter of Wishes

A letter of wishes in NJ is a document that lets your heirs know your wishes for your estate. This can include things like who you would like to inherit certain assets and how you can handle them. A letter of wish can also provide information about your funeral and burial arrangements.

Make a List of Your Assets

A sophisticated estate plan will include a list of all your assets along with information about their value and who to contact in case they need to be sold. An overview of each asset should also be included, such as real property or business equity. This will help your attorney determine how best to distribute your estate among your heirs.

Make a Plan for Long-Term Care

If you need long-term care, you may want to make a plan for it in your estate plan. This can include designating someone to make decisions on your behalf if you are incapable of doing so.

Make Sure Your Plan is Updated

Lastly, you should make sure that your estate plan is reviewed and updated regularly. Over time, laws may change, meaning that some of the provisions in your plan may no longer be advisable. An attorney will keep up with such changes and recommend any necessary updates to your plan.

Drafting a Sensible Will and Testament

One of the basic – but still very important – steps an attorney specializing in estate matters can take for you is to help you prepare a will.

Updating an Older or Outdated Will and Testament

A will isn’t meant to be set in stone. Because circumstances and relationships can change over time, it’s best to consult with an estate planning attorney if you have an existing will that needs updating. Even if no significant changes are needed, it can be helpful to have an attorney go over the various provisions in your will every now and then.

Exploring Options for Trusts

There are many ways to divide your assets as you go through the estate planning process. Other than a will, one of these options is to set up a trust. This can be a complex process if you have multiple family members or loved ones you want to provide for in some way.

Preparing Supplemental Documents and Power of Attorney

Lastly, an estate planning attorney can give you some insights into supplement documents you may wish to consider. For instance, a durable power of attorney (POA) allows you to designate someone to act on your behalf if you are unable to do so. Some other supplemental estate documents an attorney can help you properly prepare and/or update include:

Providing Comprehensive Legal Advice on Guardianship

A parent should prioritize guardianship of his or her minor children when creating an estate plan. The parent should choose a reliable and trustworthy guardian who will instill the ideal values in the minor children. An estate planning attorney can guide the parent on appointing the best guardian.

Developing a Will

The last Will spells out the wishes of the testator in a legal document. This document contains the name of the guardian for the minor children. It also specifies the formula for asset distribution. The Will also names an executor who will execute the Will according to the testator’s wishes.

Drawing up Power of Attorney (POA) Agreements

An estate planning attorney who is knowledgeable in drafting POAs can help a parent draw up a POA that meets state requirements. An attorney who knows how POAs work and is familiar with issues that may arise when they are invoked will, outline the responsibilities that the parent wishes to convey in clear language.

Reviewing and Updating an Estate Plan

Factors that directly affect the estate plan, including the addition of new family members and increased market unpredictability, can rapidly change. This change may create a need to update the plan so that it keeps on matching the owner’s goals.

How many steps are there in estate planning?

Estate planning doesn't have to be complicated, especially if you follow the 11-step estate planning checklist below to prepare your end of life documents.

What is a solid estate plan?

A solid estate plan is one of the best things you can have for yourself and your loved ones. Feeling confident that your valuable assets and prized possessions will go to the people you choose can offer you enormous peace of mind now—and you can't underestimate what a gift you will be giving later to family and friends who will not have ...

What is a living trust?

A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a "successor trustee."

How to keep costs down when someone dies?

You can set up a payable-on-death bank account for this purpose or pre-pay for your funeral. Remember to include, too, your preferences for the disposition of the body, whether it be cremation or burial.

What is a living will?

Sometimes called an advance directive, a living will is a legal document that provides instructions regarding the medical care you wish to receive should you become incapacitated or seriously ill and cannot communicate your preferences yourself. You can include instructions regarding the use of life-sustaining measures such as feeding and breathing tubes.

Do estates owe federal taxes?

Although you've probably heard dire statements about the estate tax, the truth is that the vast majority of estates will not owe any federal estate tax. This is because only those estates worth over $5.43 million (as of 2015) are subject to federal estate taxes.

Do living trusts have to go through probate?

One of the main benefits of living trusts is that property contained within them does not have to go through probate, instead passing directly to beneficiaries. This can mean a savings of both time and money for your loved ones.

What does an estate planning attorney do?

Estate attorneys help you create draft documents and create plan so that your assets go to your intended beneficiaries without any court battles or big tax bills.

What is an estate lawyer?

An estate lawyer is trained in matters related to passing on your assets after you die, and planning for situations where you can no longer care for yourself. They are experts in wills, trusts, and your local probate process. Some estate lawyers may also have specialties, like planning the succession of a business.

Why do you need an irrevocable trust?

One situation where you may want an irrevocable trust is if you have a dependent with special needs and want to provide them income without disqualifying them for Medicaid or supplemental security income (SSI). You may also consider an irrevocable trust if you want to decrease your estate value to qualify you for Medicaid, if you want to create a charitable trust, if you are trying to avoid the estate tax, or if you need asset protection from creditors and lawsuits.

How to leave assets to stepchild?

To leave assets to a stepchild, stepparent, or half-sibling, consider working with an estate lawyer. Most people could benefit from working with an estate planning attorney, but it may not be necessary (and you may not want to pay for it) in many situations. On the other hand, people in certain situations may need the help ...

Can you pass on your estate if you aren't survived?

This only happens if you aren’t survived by a spouse or child, but a solid estate plan will protect your assets and allow you to pass on as much of your estate as possible. If this is your situation, you may want to look for an estate lawyer who specializes in elder law. You want to set up an irrevocable trust .

Can you pass on assets to a business partner?

You have out-of-state property or assets . Passing on assets can get tricky if they’re crossing state boundaries, since two states may have different tax codes or other legal requirements for how to transfer an asset.

Can you bequeath assets to someone who isn't a citizen?

You have foreign property or assets . You’re planning to bequeath assets to someone who isn’t a citizen . You could also run into issues if you plan to name an executor who isn't a legal U.S. resident. Certain tasks, like getting a tax ID to open an estate account, may not be possible for nonresidents.

What is estate planning attorney?

Estate planning attorneys, also referred to as estate law attorneys or probate attorneys, are experienced and licensed law professionals with a thorough understanding of the state and federal laws that affect how your estate will be inventoried, valued, dispersed, and taxed after your death.

Why do you need to set up a trust?

Setting up any trusts you might need to protect your assets, both for your own benefit during your lifetime in the event of incapacity, and for the benefit of your beneficiaries after your death

Does Protective Life offer tax advice?

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com .

Can an estate planning attorney help with probate?

In fact, a good estate planning attorney may be able to help you avoid probate court altogether, but that largely depends on the type of assets in the deceased's estate and how they are legally allowed to be transferred.

What is an Estate Planning Attorney?

Estate Planning attorneys are licensed legal professionals who have a clear and thorough understanding of federal and individual state laws surrounding everything having to do with an estate.

5 Tips for Choosing an Estate Planning Attorney

Now that you understand what, exactly, an Estate Planning attorney is, you may be wondering how to find an Estate Planning attorney who’s right for you, your situation and your estate. You can find the perfect attorney for all your needs by following five simple steps.

Find the Right Estate Planning Attorney for You

Creating your estate plan is one of the most important things you’ll do in life. Finding the right Estate Planning attorney can help you do it. Your estate plan protects you. It helps ensure that your loved ones will have the comfort of knowing you cared enough to prepare for their future.

How many steps are there in estate planning?

Estate planning doesn't have to be complicated, especially if you follow the 11-step estate planning checklist below to prepare your end of life documents.

What is a solid estate plan?

A solid estate plan is one of the best things you can have for yourself and your loved ones. Feeling confident that your valuable assets and prized possessions will go to the people you choose can offer you enormous peace of mind now—and you can't underestimate what a gift you will be giving later to family and friends who will not have ...

What is a living trust?

A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a "successor trustee."

How to keep costs down when someone dies?

You can set up a payable-on-death bank account for this purpose or pre-pay for your funeral. Remember to include, too, your preferences for the disposition of the body, whether it be cremation or burial.

What is a living will?

Sometimes called an advance directive, a living will is a legal document that provides instructions regarding the medical care you wish to receive should you become incapacitated or seriously ill and cannot communicate your preferences yourself. You can include instructions regarding the use of life-sustaining measures such as feeding and breathing tubes.

Do estates owe federal taxes?

Although you've probably heard dire statements about the estate tax, the truth is that the vast majority of estates will not owe any federal estate tax. This is because only those estates worth over $5.43 million (as of 2015) are subject to federal estate taxes.

Do living trusts have to go through probate?

One of the main benefits of living trusts is that property contained within them does not have to go through probate, instead passing directly to beneficiaries. This can mean a savings of both time and money for your loved ones.