QUESTION
What law in a living trust requires property evaluation every three years?
Asked on Sep 18th, 2012 on Estate Planning - California
More details to this question:
My wife and brother-in-law are named in their parents living trust. They inherited properties, which apparently require a property evaluation every three years.
14 ANSWERS
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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It is probably required by the terms of the trust. Consult and attorney for more information.
Answered on Sep 19th, 2012 at 8:13 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It sounds like that is a provision of the Trust for some reason, I would have to review the documents to form an opinion.
Answered on Sep 19th, 2012 at 3:11 PM
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If there is a requirement that the property be "evaluated" every three years, that is a provision which the beneficiaries' parents, the creators of the trust, chose to include. There is no legal requirement that property be either valued every three years or be evaluated every three years. If the trust does require "evaluation" every three years, this may have been added so that the beneficiaries of the trust will evaluate the return on investment from the property, to decide whether it should be retained or sold.
Answered on Sep 19th, 2012 at 3:11 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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There is no law requiring this, that I am aware of, for trusts. There IS a requirement that conservatorship estates be formally reviewed by the court, every three years. There is nothing similar with trusts. If a trust is irrevocable, then the trustees are required to account to the beneficiaries, at least once a year. This would not involve or require any appraisal or re-appraisal of assets.
Answered on Sep 19th, 2012 at 3:11 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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You would have to look at the provisions of the living trust as to the requirement of valuation of assets every three years, the requirement may be required by the IRS rules if the living trust is setup a certain way. I suggest you see a tax attorney or a CPA after you have the living trust in your possession so the experts can evaluate the terms of the trust.
Answered on Sep 19th, 2012 at 2:05 PM
In Wisconsin, there is no law requiring a re-evaluation of property every three years. However, this may be a requirement specified within the terms of the trust or there may be other state-specific requirements depending on the state in which the property is administered. The beneficiaries of the trust should discuss this matter with the attorney and accountant who are handling the administration of the trust.
Answered on Sep 19th, 2012 at 2:05 PM
Thomas Edward Gates
The directions in the Trust dictate the requirement to have the property be evaluation every three years.
Answered on Sep 19th, 2012 at 2:05 PM
Civil Litigation Attorney serving Aptos, CA
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Richard E. Damon, P.C.
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If property is still being held in a trust that has become irrevocable because of the death of the parents, there are circumstances in which the court (or the trust itself) requires accountings. That might involve assessing the property periodically.
Answered on Sep 19th, 2012 at 2:05 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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No law generally requires this. It is possible that a provision of this trust requires such evaluations.
Answered on Sep 19th, 2012 at 2:04 PM
Peter James DeRose
The only reason that I can see would be if the property i s of such a character that its current or then value would send the estate into a situation where the trust would incur estate or death tax. I do a lot of work with farmers and I have seen that due to soaring land values and high crop prices a person owning farm land may well find that they have a taxable estate. It is wise to check, so that if an estate tax problem exists it can be resolved in some other way. If the parents are deceased then I can see no other reason and it would be common for the trust to terminate and the property be deeded to your wife and her brother, unless the trust states otherwise.
Answered on Sep 19th, 2012 at 2:04 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Who says it's required? The trust agreement could require this, but it would be unusual. Anytime somebody says "this is required," your entitled to respond "show me."
Answered on Sep 19th, 2012 at 2:04 PM
Neal Michael Rimer
There is no "law" that requires a property evaluation every 3 years. There must be something in the trust that requires that. If the trust distributed the property to your wife and her brother, then outside the trust there is nothing to require an appraisal or other valuation unless the distribution to was to an entity, or an entity owned the assets, and that entities operations require the appraisal. That would only work if the entities ownership was transferred to your wife and her brother rather than the properties themselves. You, or an attorney, needs to review the documents and be able to identify if, and to what extent, there are obligations that need to be followed.
Answered on Sep 19th, 2012 at 2:03 PM
Agriculture Attorney serving Fresno, CA
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The Law Offices of Tres A. Porter
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I am unaware of any law, but it well could be a requirement under the terms of the trust. You should consult with an attorney and review the trust itself.
Answered on Sep 19th, 2012 at 2:02 PM
Elder Law Attorney serving Hollister, CA
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Charles R. Perry
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There is no law that requires such an evaluation. However, there may be something connected to the terms of the trust, the tax treatment of the assets, or the way that distributions or made, that require these evaluations or make them advisable.
Answered on Sep 19th, 2012 at 2:01 PM