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Home » CalCPA Discussion Forum » Estate Planning » Use of Probate Referee Values on 706

Use of Probate Referee Values on 706 Expand / Collapse
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Anonymous
Posted 5/9/2006 9:08:20 AM




Working on a taxable estate that has a sole proprietorship, personal residence and various investments. Since the decedent did not have a trust, everything is going through probate. So, for the estate tax return the client has provided the probate referee statements for valuation.

Are these values likely to stand up under audit? Or should the the executor obtain valuations for some or all of these items from an appropriate appraiser (or Estate Val for the investments)?

Additional tidbit - it is my understanding that the sole proprietorship would be worth significantly less in the hands of a non-family member due to some grandfathered agreements.
Post #143
Posted 5/9/2006 12:34:05 PM
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See my response to post titled "Fair Market Value Date of Death Realty" a few weeks ago.

John Jacobson
Post #144
Posted 5/13/2006 6:04:39 PM
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Just as a matter of interest, I prepared Form 706 a few years ago for an individual who owned real estate (3 joint ventures, 5 partnerships); the largest parcel was one that he owned 50% of but had some toxic clean up issues.

We hired an appraiser for the large parcel and he did a lengthy discount analysis. We gave the probate referee a copy of the appraisal plus information on the other properties furnished by the property manager - decedent's nephew. The probate referee used all of the nephew's values and reduced the value determined by the appraiser with a very foggy explanation of discounts.

Who would have thought that would happen?

Mary Kay Foss

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