Estate Planning

The Perfect Storm?

By Hull & Hull LLP

It's About the House's Current Market Value, Stupid.

One of the first steps in any estates litigation matter is valuing the estate assets.  Most assets are easy to value: RIFs, bank account, etc.  But for many estates, the major asset is house.  This is particularly true in the GTA (Greater Toronto Region, for our U.S. readers), where baby boomers who bought modest homes decades ago have seen the value of their house skyrocket.

The twist for both estates lawyers and litigants is that house valuations are inherently less precise and more subjective than most assets.  Accurate information on the market value of a house can be crucial. 

The subprime fiasco in the U.S., a potential serious recession and Toronto's new land transfer tax may possibly create the unthinkable horror: a decline in the housing market.  I am far, far away from being an authority on real estate, but it may be prudent to consider attaining current appraisals where there is doubt about a home's value.  That is especially the case for matters that have dragged on for years.  Obtaining an appraisal from a reputable appraiser, for instance one certified by the Appraisal Institute of Canada (see: http://www.aicanada.ca/e/index.cfm), is one option to consider.

The information gleaned may be invaluable in driving a better settlement.

Thanks for reading and have a great week.

Chris Graham

Full post as published by Toronto Estate Law Blog on March 10, 2008 (boomark / email).