looking for guidance

[fwjone819]

Hello,
I am just looking for a little generic information I guess. My dad passed away Dec. 29, 2010. There are 4 children and dad had a will. He was a farmer with a 60 acre property that he set up to be divided equally with siblings (this was done years ago).
Spoke with our lawyer over the phone and are to meet with him tuesday but he says he needs a "complete" listing of every single item dad owned, what they were worth and any debts he had. Something about various levels of probate.
Two questions:
First- how will we decided "worth" of items such as old equipment, trucks, tractors etc.
Second- Someone mentioned that 2010 was an odd year with different tax consequences for beneficaries of the estate. What in general terms can be expected?

FYI- Dad had no debt, was on SS, no other income and has no insurance implications.
Thanks for info.

[taxref]

Allow me to address your second question first. In 2010, there was no federal estate tax (ie: a tax on the value of the estate, which is paid by the estate). There is also no federal inheritance tax (a tax paid by beneficiaries on the value of what they inherit). There may, however, be state estate and/or inheritance taxes where you live.

As to your first question, often appraisers are hired by estates to value such items. If someone in your family is a farmer who is familiar with the current fair market value of the assets, you may not need an appraiser. Even if there is no tax due, determining the FMV of the assets is important. That value affects the beneficiaries gain or loss should they sell those assets.

Edited to add: The fair market value of an asset is defined as the price an informed buyer and an informed seller would agree upon, assuming neither is under a compunction to buy or sell.

[fwjone819]

Thanks for the information. That helps. I appreciate your time in answering my questions. Have a good new year

[❤ mollymouser ❤]

Your probate attorney may be able to suggest/recommend knowledgeable, local appraisers for the farm equipment, if needed.

[toservewithlove]

I am not able to offer any assistance, but wanted to say sorry for your loss.

[TheOtherMe]

Depending on which state you live in, their may be state inheritance taxes that will need to be paid.

[fwjone819]

I thought of something else I wanted to ask about.
My husband and I have always had simple tax returns and were always able to complete ourselves. We had the basic "made this much, paid this much, owe this much", never had a lot of "extra's" and I am sure that will change with dad's death. Since dad died in 2010, would I file as usual, then amend when we know how things stand, or does any tax implications end up on next years return? (We will most likely use a professional preparerer for whichever year is affected).
Thanks again

[ShoreEA]

My sympathies as well for your loss.

From what you have stated, it is unlikely that there will be any income tax consequences for you and your husband in 2010. In fact, since the land and the farm equipment don't seem to be generating any income, it will only be when you sell those assets that a taxable event occurs. Heirs don't pay income tax on what they inherit, only on the income generated once they take possession.