Estate planning is ultimately about clarity—clarity for you, for your beneficiaries, and for the professionals responsible for carrying out your wishes. Appraisals play a central role in that process. Whether you are creating a trust, updating a will, or preparing for future estate administration, a professional appraisal establishes defensible, well-documented values for the assets that matter most.
This article explains why appraisals are used in trust and estate planning, what the process looks like, and what you should expect before, during, and after an appraisal engagement.
Trusts and wills often involve assets that are not easily valued by reviewing an account statement. Personal property, real estate, business interests, collectibles, and specialty assets all require professional judgment to determine value.
Appraisals in estate planning are commonly used to:
By documenting values proactively, families can avoid confusion, disagreements, and rushed decisions later—often during emotionally difficult periods.
Appraisals may be required at several points in the estate planning lifecycle, including:
In many cases, these appraisals serve as planning tools, but they often become foundational documents relied upon by executors, trustees, CPAs, and attorneys later on.
Estate planning appraisals frequently involve a wide range of asset types, including:
Each asset category requires different expertise, valuation approaches, and documentation standards.
One of the most important steps in an estate planning appraisal is defining why the appraisal is being performed. The intended use drives everything—from scope of work to the definition of value.
Common estate-planning purposes include:
Your appraiser should clearly document the intended use and intended users of the appraisal.
For trust and estate planning, appraisals most commonly conclude Fair Market Value (FMV).
Fair Market Value is generally defined as the price at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell, and both having reasonable knowledge of relevant facts.
This definition provides a neutral, widely accepted benchmark for estate and gift planning purposes.
The appraisal process begins with scoping the assignment. This includes:
Once the scope is finalized, an engagement letter is executed and the appraisal formally begins.
Depending on asset type, the appraiser may:
Transparency is critical—undisclosed condition issues or incomplete records can undermine the reliability of the valuation.
The appraiser researches relevant markets and applies appropriate valuation methodologies. This may include:
For personal property and collectibles, the market approach is most commonly used.
The final deliverable is a written appraisal report that clearly explains:
For estate planning, reports are often prepared with the expectation that they may be relied upon years later.
Once a trust becomes irrevocable or an estate enters administration, trustees and executors have fiduciary duties to act prudently and impartially. Appraisals help them:
A well-prepared appraisal can significantly reduce fiduciary risk.
Disagreements among heirs often arise when asset values are unclear or perceived as unfair. Independent appraisals provide:
This clarity can help prevent disputes before they arise.
Estate planning appraisals are not emergency exercises, but they should not be delayed indefinitely. Values change, and outdated appraisals may need to be refreshed.
Many planners recommend:
Appraisals are a foundational component of thoughtful trust and estate planning. They provide clarity, defensibility, and peace of mind—both for the person creating the plan and for those who will eventually carry it out.
By addressing valuation proactively, families can reduce uncertainty, limit disputes, and ensure that their estate plans function as intended when they matter most.
