There are a lot of misconceptions and myths about determining the real market worth of a property (valuation) and making arrangements in advance for the disposal and management of the property in the event of one’s demise or incapacitation. Most of the myths which will be discussed latter in this piece are for the most part born out looking at estate planning from the layperson’s perspective. For the records, thus is a rundown of myths and counter myths:
Estate Planning and Valuation are Reserved for the Deep Pockets
A good count of people have this misconception that property valuation and planning are reserved for people who are well to do. To such people estate appraisal and will planning are only essential to cutting down uncle sam’s tax as well as completely evading tax for the fact that if a property is worth less than 5,120,000 it is exempted from tax payment. The idea is valuation and planning aren’t just about tax payment only, but they also have to do with the bequest of property as well as property management to the person of interest. Without good will and trust planning for property, it gets into the wrong hands. In lieu of ensuring protection for one’s family by leaving them with legacy, the family is plunged into misery.
Real estate disputes and cases take different forms. In some cases, it would be tax. Others may be controversies among family members and extended family members as to who gets what especially in the absence of a comprehensive will or an updated will or when a will doesn’t cover an aspect of a property. In any situation as far as a property presents controversies and there are no legal backing for valuation and planning, the probate court takes control over the case to render its verdict and decide who gets what. All said done, property valuation and will and trust planning wouldn’t be an option for people who own a property and they hope to leave it as worthy legacy for their family.
Planning and Valuation has to be Done Once
Well that would be true if market forces don’t force prices up and down and the market worth of property doesn’t change over time. What’s worth hundred thousand bucks today might be in the nearest future worth either a lot less or a lot more. Secondly, people change their minds, they let go of their spouses, probably one they have designated the role of power of attorney or beneficiary, and so on. Above and beyond, in consideration of the fact that market value for property will always change and that several elements will present the need for changing wills and trusts, property valuation and planning is not something a property owner would for the most part do once.
Closing note
There are a lot more misconceptions of property valuation and planning and it is critical to put your hand on all of them to really understand the meaning of the terms. At http://miamiprobate.com/ you will find more details regarding estate planning and valuation. Thus you will get armed enough to decide whether or not it’s worth the try.