When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
Are you planning to draft a will or make other estate planning arrangements? If so, you'll need to gather some information together if you want to make an accurate will that reflects your true wishes. Among this information should be appraisals of certain key assets.
Why is an appraisal important before drafting a will? Here are a few of the most valuable reasons.
1. Values Change Constantly
If you've never had an appraisal done or it's been a long time, be aware that the item's value could have changed significantly since you last assessed it. Some items appreciate and others will have depreciated. But there's no way to know until you value it as it stands today.
For example, you might be agonizing over who to give your antique clock collection to. You know what it was worth when you bought the pieces. But what about today? If you learn that the collection isn't worth very much, the decision will likely be a lot easier because it's no longer about finances. If it's worth more than you expected, it could now form a more significant part of your will.
2. Values Affect the Results of a Will
Your will has two basic functions. The first is to let your wishes be known regarding personal matters, such as your funeral arrangements. The second goal is to disburse your financial assets to achieve the results you want.
If, though, you don't know how much each asset is worth, you can't make an accurate disbursal. You may wish to provide for a grandchild's education, for instance. But if your antique clock collection has depreciated too much, it may not accomplish what you want it to. In this case, you'll need to make additional arrangements to achieve the same results.
3. Appraisals Are Independent
Financial matters in wills can be a huge source of conflict for surviving family members. Obtaining accurate third-party appraisals of certain items will help avoid those conflicts because everyone will be better able to agree on how much various things are worth and how much each party received in the will.
If you order an outside appraisal that indicates your antique clock collection is worth $10,000, for example, heirs will be much less likely to assign their own sentimental, understated, or overstated opinions on its value. With that certainty, everyone can move on more easily and may avoid unnecessary resentment, bitterness, anger, or frustration.
Are there items in your potential estate that you need to better understand the value of? If the answer is yes, start today by consulting with a personal property appraisal service in your area.
Share26 May 2020
