Why do I need an asset valuation when administering a trust or estate in California?

As the executor of an estate or trustee of a trust in California, you have many responsibilities on your plate. The responsibilities include managing the assets, filing necessary tax returns, and distributing the assets. As part of the process, the administrator of an estate should obtain an asset valuation for the estate or trust property. By doing so, the administrator is better able to fulfill his or her obligations. Different assets will use different methods for obtaining a value. An experienced Anaheim estate attorney can help you to properly value assets.

Asset valuations serve many purposes. These purposes may include:

  • Determining whether a federal estate tax return needs to be filed.
  • Calculating the amount of any federal or state estate tax that is due.
  • Providing a tax basis for each asset.
  • Satisfying the requirements for estates outlined in the rules and regulations of the Internal Revenue Code.
  • Providing reliable evidence to support your actions if you are challenged by a beneficiary or other interested party who alleges that you did not sell an asset for fair market value.
  • Allowing for a fair distribution of assets among the beneficiaries of a trust or estate.
  • Helping a trustee or executor to assess whether or not to sell the asset if doing so is within his or her discretion.
  • Ensuring that a trustee or administrator is fulfilling the duties assigned to him under California law.

Clearly, there are many reasons for obtaining asset valuations during a trust or estate administration. Our office of experienced Anaheim trust attorneys can help you every step of the way during this process. Call us today at (714) 459-5481 for a consultation.

James F. Roberts
Founder and owner of the Law Office of James F. Roberts and Associates, a premiere estate planning law firm