Valuing Trust Assets in Coral Gables

There are many steps that go into administering a trust under Florida law. Most of them take place long before you ever pay any creditors or distribute assets to beneficiaries. One of the most important things any trustee must do in order to be successful is to accurately determine what the property held by the trust is worth.

Valuing trust assets can be a challenge, especially when it comes to property like commercial real estate or rare jewels. The support of a dedicated Coral Gables attorney can ensure you assign the appropriate value to all of the relevant assets.

Why is Valuing Trust Assets Important?

There are several reasons why it is crucial to accurately determine the value of assets held in a trust. While trustees are often tasked with transferring bank accounts and liquid assets that have a clear value, some trusts have ownership over items that are not easy to place a dollar value on. Without an accurate value, the trustee will not have a clear picture of the financial health of the trust. What’s more, undervaluing or overvaluing property could lead to beneficiaries not receiving their fair share.

A proper valuation can also help protect against a creditor’s claims. This is important, given that shielding assets from the reach of creditors is a viable use for certain trusts. If property is undervalued, it could result in the unnecessary liquidation of assets to pay these claims.

Some Valuations are Straightforward

There are certain aspects of a trust that are simple to value. This starts with bank accounts and other liquid assets that are either made up of or easily convertible into a specific amount of cash. It is not necessary to formally evaluate these accounts, given that they have an exact dollar value.

There are other types of property that will require some legwork, but determining what they are worth is relatively easy. When it comes to assets like cars, there is a consensus on what a specific make and model is worth, depending on its condition. There are even services and books that give a suggested sale price based on this information.

Valuing Complex Assets

The real challenge in valuing assets in a Coral Gables trust involves rare or complex holdings. For example, rare cars are not as simple to place a value on, given that there are not thousands of similar transactions to inform your opinion. Rare or high-value cars might need to be evaluated by an expert in order to get a clear picture of what they are worth.

Real estate is similar. While you will need an appraiser for any type of property, commercial real estate can be especially challenging. While there are countless real estate transactions involving homes in a given area each year, commercial property is much more difficult to place a value on.

Rare items are another example of assets that can be difficult to assign a value to, such as art, jewelry, gems, or musical instruments. Experts are typically needed for this process, and they can be hard to come by without the help of an attorney.

Talk to an Attorney in Coral Gables About Valuing Trust Assets

If you are facing the challenge of valuing trust assets in Coral Gables, you do not have to do so alone. The right legal team can ensure that you carefully evaluate everything held by the trust, from rare valuables to real estate. Now is the right time to discuss your options with us. Contact Veliz & Associates, P.A. right away to schedule a confidential consultation and talk with us about assigning a value to all relevant assets.