Does a Specific Bequest in a Will Need to Be Appraised?

Yes, a specific bequest in a will may need to be appraised, depending on several factors, including the nature of the bequest, local laws, and the executor’s judgment. Consider the following:

• Value and Type of Asset. High-value items or unique items like art, jewelry, or real estate typically require appraisals to establish their fair market value for tax purposes and for equitable distribution among beneficiaries. Routine items of nominal value generally do not require appraisal.
• State Laws. Probate laws vary by state. To ensure transparency and accountability, some states mandate appraisals for specific types of property or when the estate exceeds a certain value threshold. Executors should consult with an estate planning attorney to understand local requirements.
• Executor’s Discretion. Even if not legally required, an executor may choose to have an appraisal to protect themselves from potential disputes by beneficiaries or to ensure accuracy in estate accounting and tax filings. An appraisal provides an objective basis for discussion or legal decisions. For example, if a specific bequest is made to one beneficiary and the rest of the estate is divided among the others, the value of the bequest might need to be appraised to ensure fairness among beneficiaries.
• Tax Implications. Appraisals are often necessary for determining estate tax liabilities, especially if the estate is large enough to trigger federal or state estate taxes. The appraised value becomes the basis for these calculations.