Wills & Estates
Wills & Estates - Plan your estate the right way
In situations involving the settlement or planning of an estate in Canada, obtaining a professional appraisal is crucial. Our expertise in property appraisals ensures accurate valuations and unwavering commitment to your trust.
Following the passing of a property owner in Canada, it is often necessary to obtain an appraisal for various purposes such as a deemed disposition, probate, or net worth estimate. Here's why an appraisal is essential in these scenarios:
Deemed Disposition
When a property is inherited, it is considered a deemed disposition, meaning it is treated as if it were sold at fair market value on the date of the owner's death. This triggers potential tax implications, particularly capital gains tax. An appraisal helps determine the fair market value of the property at the time of the owner's passing, serving as the basis for calculating any capital gains tax liability upon a subsequent sale.
Probate and Estate Administration
During the probate and estate administration process, an appraisal is often required to evaluate the value of the deceased owner's estate, including the inherited property. The appraisal assists in determining the overall estate value, fulfilling legal requirements, and ensuring the equitable distribution of assets among beneficiaries.
Net Worth Estimate
An appraisal is valuable for estimating the net worth of an estate, which includes the inherited property. This assessment is important for financial planning, tax purposes, and understanding the overall value of the estate. The appraisal provides an accurate valuation of the property, contributing to a comprehensive net worth calculation. By obtaining an appraisal, the inheritors can obtain an independent and professional evaluation of the property's value, ensuring compliance with Canadian tax laws, meeting legal obligations, and making informed financial decisions. The appraisal serves as a reliable basis for probate proceedings, tax planning, and estimating the net worth of the estate, providing a clear understanding of the inherited property's value in various contexts.