How and when is property assessed upon entering into inheritance?

Legal basis for assessing inheritance

The process of registering an inheritance is regulated by Section V of the Civil Code of the Russian Federation and the Fundamentals of the Legislation of the Russian Federation on Notaries. However, these documents define standards only for the inheritance procedure, and the regulatory framework for the assessment includes the following documents:

• Constitution of the Russian Federation;
• Civil, Tax, Urban Planning and other codes;
• Federal Law “On Valuation Activities in the Russian Federation”;
• Federal assessment standards;
• standards and rules for the activities of self-regulatory organizations of appraisers;
• other departmental documents.

In their work, subjects of evaluation activities use each of these documents to the extent required by the object of evaluation. The main ones among them are the Federal Law “On Valuation Activities in the Russian Federation”, as well as the Federal Valuation Standards, of which 8 are in force at the time of publication.

When should the procedure begin?

An apartment appraisal for inheritance should be ordered immediately after the death of the testator . After all, only six months are given to notarize the rights of inheritance (this norm is enshrined in Part 3 of the Civil Code of the Russian Federation). Therefore, there is no point in delaying the assessment, especially if there are disputes regarding the inheritance that need to be resolved in court.

The assessment procedure will not take much time - from the moment of providing all the documents and visiting the apartment to the issuance of a completed report, usually no more than two to three days pass.

An expedited procedure with obtaining a conclusion on the day of application is also possible.

When and why is an inheritance valuation carried out?

The need to evaluate an inheritance arises, as a rule, at the stage of registering inheritance rights with a notary, within six months provided for the acceptance of the inheritance. Most often, it is carried out at the request of the legal successors of the deceased, the executors of the will, or representatives of the guardianship and trusteeship authorities.

In most cases, an assessment is inevitable, since in order to fully enter into the right of inheritance, the successors need to obtain a certificate of the right to inheritance.

For its extradition, in accordance with paragraphs. 22 clause 1 art. 333.24 of the Tax Code of the Russian Federation, the notary collects the state fee. pp. 6 clause 1 art. 333.25 of the Tax Code, it is determined in relation to the value of the inheritance mass on the date of opening of the inheritance.

Therefore, the assessment of inherited property on the date of death is mandatory in cases where successors register inheritance rights with a notary. If there is no need for such registration, an assessment is not required.

In addition to paying the notary fee, the need for an assessment procedure may be due to disagreements on the part of the heirs who cannot equally divide the inherited property. Determining the market value of the property will allow them to allocate equal shares in the inheritance based on the value of the things included in it.

Why is real estate appraised during the inheritance process?

Entering into inheritance is a procedure that requires notarization.
At the same time, on the basis of Art. 333.25 of the Tax Code of the Russian Federation, it is necessary to pay a state duty for receiving material benefits. In this case, the amount of the state duty will depend on the market value of the apartment. The valuation of property upon its inheritance is carried out by specialized companies.

However, most ordinary citizens have a very vague understanding of what the essence of such a procedure is, why it is necessary, who is obliged to carry it out, and what documents are needed for this.

When registering inheritance rights with a notary, you must pay a notary fee. Its amount also depends on the appraised value of the apartment.

Moreover, the current market value is taken into account. Without an assessment, it is impossible to re-register an inherited apartment as private property.

Notary fee for inheritance

Considering the need to pay a state fee for issuing a certificate of inheritance from a notary, regardless of the basis of inheritance, each of the heirs is obliged to pay an amount that is determined based on the value of the property he receives.

The size of the notary fee also depends on the degree of relationship between the successor and the deceased, and is charged in the amount of:

• 0.3% of the price of items received (limit – 100 thousand rubles) for first-line heirs and full brothers and sisters;
• 0.6% of the price of the items received (limit – 1 million rubles) for all other successors.

The notary fee is paid before receiving the certificate from the notary. It should be noted that some heirs, in the presence of special circumstances defined by Art. 333.38 of the Tax Code may qualify for benefits when paying state duty.

The article “State Duty on Inheritance” will tell you more about this.

Who conducts the assessment

The legislator has determined a number of persons and organizations that have the right to evaluate inherited property for various types of things included in the inheritance mass. So, according to paragraphs. 7-10 p. 1 tbsp. 333.25 of the Tax Code, the market price of any property is authorized to be determined by an appraiser or a legal entity to which this right is granted by law.

Article 4 of the Federal Law “On Valuation Activities” determines that the subjects of valuation are appraisers - members of self-regulatory organizations of appraisers who have insured their liability in accordance with the law and received the necessary qualification certificate. According to Art. 9 of the law, an agreement is concluded with such persons, which is the basis for the assessment.

However, private appraisers are not the only ones who have the right to evaluate inheritance. Depending on the type of property, according to paragraphs 7-9, paragraph 1 of Art. 333.25 Tax Code, the procedure can also be carried out by:

• bodies of state cadastral registration and state registration of rights to real estate - in relation to land plots;
• forensic expert institutions of justice - in relation to vehicles that were included in the inheritance mass;
• organizations for registering real estate at its location (BTI) - in relation to any real estate, except land.

Please note that, according to paragraphs. 13 clause 1 art. 333.25 of the Tax Code, the assessment of property located outside the Russian Federation is carried out by the competent authorities of the country in which part of the inheritance is located.

Cost of professional assessment

How much does the assessment procedure cost? Typically, the cost of appraising an apartment varies between 2-5 thousand rubles . It depends on the following factors:

• location of the property and the appraising organization;
• qualification of the appraiser;
• area and other characteristics of the apartment.

An apartment appraisal report for a notary is issued for a period of six months, since it is during this period that it is necessary to enter into an inheritance . The certificate for the court is unlimited, since it certifies the cost of housing precisely at the time of the death of the testator, and only this factor is important for the judge.

A professional appraisal of an apartment is not included in the main stages of inheritance. However, it is unlikely that it will be possible to do without this procedure.

There should not be any particular difficulties with the assessment if you contact qualified appraisers who are members of the SRO and strictly follow the other recommendations from this article.

Methods for conducting assessment

Despite the clear regulation of the rules for paying state fees, legal successors are given the right to choose both a document confirming the value of the inheritance mass and the valuation method itself.

According to para. 2 pp. 5 p. 1 art. 333.25 of the Tax Code, the payer of the notary fee has the right to independently determine which document to provide to the notary.

The valuation of inherited property for a notary can be determined by:

• cadastral value;
• inventory value;
• market value;
• any other (nominal) value.

In this case, the notary does not have the right to determine the necessary method of valuation and demand confirmation of a specific value from the successors.

Moreover, if the notary receives several reports and they indicate different prices, he is obliged to calculate the notary fee from the lowest price confirmed by documents. In this case, an important aspect is the indication of such a price precisely at the time of the death of the testator.

Features of state cadastral valuation

Cadastral value is applied to real estate objects, is established in accordance with the procedure for state cadastral valuation and is interpreted as the value recorded in the state register. It is determined by mass valuation methods, and if it is impossible to carry it out - individually for a specific property.

The procedure for conducting state cadastral valuation is determined by Chapter III.1 of the Federal Law “On Valuation Activities”.

Such an assessment, according to Art. 24.12 of the law, is carried out by decision of the executive body of the subject of the federation or local government. Having made a decision, the customer of the assessment, in accordance with Art. 24.14 of the law, holds a tender at which it determines the contractor (appraiser or organization) and concludes an agreement with him.

Based on the report provided by the appraiser, the cadastral value is entered into the State Cadastre.

The heir can obtain data on the cadastral value by contacting the territorial bodies of Rosreestr, the Federal Cadastral Chamber, or electronically on the Rosreestr website.

An extract on the cadastral value of real estate generated on the website is a document confirming the value of the inheritance and is sufficient for a notary. However, since cadastral valuation is carried out every three years, the value indicated in the cadastre is not always relevant.

If the value entered into the cadastre is considered too high, the successors should entrust the assessment to private appraisers.

Inventory value

Inventory value is another approach to the valuation of inherited real estate, implemented by local BTI appraisers at the request of the heirs. It should be noted that this type of assessment has been practically not used for the last few years. The fact is that in the expert community there is an opinion that the inventory assessment is carried out according to outdated criteria, and therefore does not determine the objective value of real estate, but significantly underestimates it.

In the context of this opinion, the notary fee calculated on the basis of such an assessment will also be underestimated. The same position was supported by the Ministry of Finance in information letter No. 03-05-06-03/57471 dated December 26, 2013, determining that since 2014 the inventory value is not applied when calculating the notary fee.

However, the letter is only advisory in nature and does not have normative force, which is why it cannot be perceived as a normative legal act. Moreover, the possibility of using inventory value is determined by Art. 333.25 Tax Code. Thus, the notary cannot refuse to accept the property inventory valuation report to the successors.

Market value - what is it?

Under the market value of the subject of assessment, according to Art. 3 of the Federal Law “On Valuation Activities” refers to the price of such an object at which it can be purchased on the market under conditions of free sale. This price is considered the most objective in the expert community, since its determination takes into account not only the subjective characteristics of the object under study, but also the influence of the market, demand and supply.

Due to these factors, the assessment of market value is considered the most appropriate when determining the basis for calculating the notary fee.

It is worth noting that this type of assessment is applicable not only to real estate, but also to any other things included in the inheritance.

The assessment of the market value of the inheritance is carried out by an independent expert appraiser or organization that has the appropriate licenses and qualification certificates. Market valuation can be carried out using a cost, comparative or income approach.

Types of cost estimation

How to evaluate an inheritance? There are three possible options for valuing property.

Inventory

The inventory value is determined by the BTI service. Its value is influenced by the smallest number of factors, which is why this cost is less accurate. To obtain a certificate with the inventory price, you must send an application to the BTI and present the applicant’s passport.

This type has hardly been used lately due to the fact that the cost is too low and far from reality. But when a notary receives a paper with an inventory value, he must use it to calculate the state duty.

Cadastral

Almost any real estate has a cadastral value. You can find out by contacting the Unified State Register of Real Estate. This value is higher than the inventory value, but should not exceed the market value. It is determined by the cadastral engineer of Rosreestr. The following factors influence the establishment of the cadastral price:

• location of the property being assessed;
• prestige or peripherality of the area where the object is located;
• area of ​​occupied territory;
• availability of infrastructure at the location of the facility;
• convenience of planning (for an apartment);
• category and purpose of use (for land);
• age, service life.

During the cadastral valuation, individual characteristics are not taken into account, which does not give a complete picture of the value. For example, expensive repairs have been carried out, the presence of fashionable plumbing in an apartment or house.

Market

Market value is considered the most accurate, providing for all the individualities of the object being valued. Also, to determine it, the availability of supply and demand for this type of property is taken into account. It is usually issued by an independent expert. This type of valuation is most often used when registering an inheritance as the closest option to the real price.

To calculate the amount of the state duty, any assessment option can be used in accordance with the Tax Code of the Russian Federation, Article 333.25, paragraph 5. Moreover, if several options are available at the same time, the amount of tax is determined in the interests of the heir, that is, the lower value of the object of inheritance will be used to calculate the state duty.

Assessment procedure

The assessment of the inherited property must be carried out at the request of the interested heirs. By contacting an expert appraiser or an expert organization, the customer enters into an appropriate agreement with the contractor, on the basis of which the experts will collect the necessary information and form objective conclusions.

After concluding the contract and providing all the requested documents, the expert, in general order:

• examines the things being assessed;
• determines the characteristics of the things being evaluated;
• chooses an assessment method;
• analyzes the market on which the valued object is presented;
• summarizes the results obtained;
• draws up an assessment report and transmits it to successors.

It should be taken into account that the specific procedure for conducting the assessment, as well as the persons who have the right to conduct the assessment, will depend on the objects included in the inheritance mass and their characteristics.

Evaluation report

Please note that, according to Art. 11 of the Federal Law “On Valuation Activities”, the paper report issued to the heirs must contain the following data:

• formation date and number;
• reference to the agreement drawn up with the successors;
• information about appraisers;
• purpose of assessment;
• detailed description of the object being assessed;
• the standards that formed the basis for determining the price;
• sequence of price determination;
• list of documents used.

The resulting report cannot have an ambiguous interpretation or mislead customers. It must reflect information that provides a complete and unambiguous understanding of the results and conclusions reached by the appraiser.

Required documents

The appraiser will most likely request from applicants for inheritance a package of documents necessary for the appraisal. Obviously, the composition of such a package will vary depending on the type of things being assessed. However, the list of general documents includes:

• identification documents of customers;
• death certificate;
• documents confirming the degree of relationship between the successors and the deceased;
• documents of title to the object of evaluation: purchase and sale agreements, donations, exchanges, sales receipts, invoices, and so on;
• technical documentation: technical passport, cadastral plan, etc.;
• extract from the register of rights to real estate (for real estate);
• color photographs of the object (on request).

How are the assessment results presented?

The assessment work is completed by issuing an Apartment Assessment Report , which contains the following information:

• a detailed description of all the characteristics of the apartment;
• analysis of the real estate market segment;
• a description of all the methods used by the expert to determine the cost of the apartment;
• calculation of the market value of the apartment.

In addition, the expert or representative of the expert company must provide the heir with a package of documents , including...

• A report on the expert assessment of the apartment, which the heir needs to accept the inheritance;
• A copy of the agreement on the provision of expert assessment services;
• Certificate of completed appraisal work;
• Payment document confirming payment for services.

Validity period of the Report

Heirs should take into account that the Report, which is submitted to the notary's office to calculate the state inheritance duty, determines the value of the apartment on the date of death of the testator.
Since market prices for real estate tend to rise or fall, this document is valid for a certain period (6 months), and after some time, for example, for transactions with residential real estate or litigation, a new assessment may be required. But if the Report is used in a lawsuit regarding the division of housing between heirs, it is unlimited, since it confirms the value of the inherited property as of the date of opening of the inheritance. Attention!

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

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Author of the article

Irina Garmash

Family law consultant.

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Valuation of certain types of inherited property

It is important to understand that the assessment of inherited property has its own characteristics associated with the specific type to which the items being assessed belong. This is related not only to the packages of documents provided or, for example, the assessment methods used, but also to the permissible subjects of assessment activities, as well as assessment methods.

Among the most relevant types of property are real estate, vehicles, securities and land.

Valuation of a share in an LLC upon inheritance

According to Art. 1176 of the Civil Code, the inheritance of an LLC participant includes his share in the share capital of the specified company. The assessment of such share may be carried out by an expert qualified to carry out such assessment in accordance with the qualification certificate.

When valuing a share in an LLC, all three approaches are traditionally used - comparative, cost and income.

In essence, such an assessment involves carrying out a large-scale set of activities aimed at assessing:

• book value of the company's tangible assets (real estate, vehicles, fixed assets, equipment and other property);
• the value of the company's liabilities (the totality of obligations to creditors);
• financial investments and reserves of the company;
• accounts payable and receivable, taking into account the reasons for their occurrence, conditions, terms, etc.;
• intangible assets (patents, licenses, utility models), etc.

In addition, when assessing a share in an LLC, the company’s financial stability, profitability, liquidity, economic situation in the market and many other factors are taken into account. The publication “Valuing a Share in an LLC” will tell you more about them.

Land assessment

According to paragraphs. 9 clause 1 art. 333.25 of the Tax Code, land assessment has the right to be carried out not only by independent appraisers, but also by bodies carrying out state cadastral registration and registration of real estate. In fact, to obtain a report on the cadastral value of land, successors have the right to contact the territorial body of Rosreestr with a corresponding application.

If they consider it necessary to find out the market value of a land plot, they cannot do without an independent appraiser.

When assessing the land, he will take into account:

• purpose of the land plot (agriculture, individual construction, etc.);
• the testator's right to land (ownership right, lifelong possession right, etc.);
• land area;
• distance from populated areas;
• infrastructure development;
• the presence of communications, outbuildings and other structures;
• land prices near the site being assessed;
• demand for land.

All necessary information must be documented.

Valuation of shares upon inheritance

Shares, like other securities, can be transferred by universal succession, so they are also subject to valuation. The Tax Code does not provide for any specifics for the valuation of shares, therefore, according to paragraphs. 10 p. 1 art. 333.25 Tax Code, carried out by independent appraisers.

To carry out this procedure they will need the following documents:

• extract from the register of shareholders;
• successor's passport;
• death certificate of the testator;
• financial statements for the last 3 years;
• information about existing assets, debts, funds;
• copies of the certificate of registration, articles of association, etc.

Please note that the list of documents to be submitted may vary. Studying them, the appraiser is obliged to monitor the securities market, analyze the balance sheet of the joint-stock company, its assets and liabilities, analyze social, political, economic and other factors, demand for shares, and so on.

The valuation is carried out at the time of the shareholder’s death, that is, by the date the rights to the shares are received, their value may change significantly.

Vehicle valuation

As already mentioned, vehicle assessments can be carried out not only by appraisers, but also by forensic services of the justice authorities. These are, in particular, federal and regional forensic centers, central and local forensic laboratories.

Regardless of who carries out the appraisal, cars and other vehicles are valued solely at market value.

To determine it, in addition to the passport of the owner (testator) and his death certificate, the expert is provided with:

• technical passport for the vehicle;
• registration certificate;
• maintenance documents.

When evaluating a vehicle, the year of its manufacture, mileage, technical condition, accidents, market prices, demand and other features are taken into account.

Apartment valuation

The price of an apartment, like any other real estate with the exception of land, can be determined not only by appraisers, but also by local BTI. The latter can only estimate the inventory value, which, as is known, is underestimated, however, according to paragraphs. 5 p. 1 art. 333.25 Tax Code, can also be used when paying the notary fee.

However, the preferred value is the market value, which is determined by appraisers. To determine it, experts ask:

• title documents for the apartment;
• extract from the USRPN;
• explication and floor plan from BTI;
• technical and cadastral passport for the apartment;
• other technical documentation.

When conducting assessment actions, the expert will take into account the technical condition of the apartment, its subjective operational characteristics, floor, condition, square footage, infrastructure development, prices and market demand.

What documents are required?

The procedure for assessing the market value of an apartment consists of two stages: checking documents and visiting the premises itself.

Sometimes (for example, if there is a dispute over an apartment, it has been seized, and access to it is difficult), an assessment can be made only on the basis of the documents presented. Therefore, without a fully assembled package of papers, a qualified assessment of the value of real estate is impossible .

Since appraisers use a comprehensive assessment method that complies with state regulations and standards, they require a complete package of documents that allows them to carry out the following actions:

• comparative analysis of inherited and similar apartments on the market;
• technical condition of the immovable object;
• general condition of the residential building;
• location of the property (transport accessibility, infrastructure, etc.).

In this regard, appraisers require the following package of documents for the apartment::

• certificate of ownership;
• BTI documents (form 11-a);
• other technical documentation (technical passport);
• documents on encumbrances affecting the cost of the apartment (mortgage, rent, etc.).

Valuation of property rights

Property rights are understood as the rights of claim of participants in relations under obligations, where they act as creditors.

According to Resolution of the Plenum of the Armed Forces of the Russian Federation No. 24 dated July 09, 2013, property rights include the rights of claim of creditors and other rights for which monetary compensation is provided, for example, the right to the results of intellectual activity, to means of individualization, etc.

In other words, property rights should be considered all rights to movable and immovable property, as well as intellectual property, which the testator could demand in accordance with the contracts concluded by him.

They, according to Art. 1112 of the Civil Code are also included in the inheritance mass, and therefore are subject to assessment when registering an inheritance.

Since the legislator has not defined any features, they are assessed by experts in a general manner. However, it should be taken into account that it is not the property rights themselves that can be assessed: according to paragraphs. 12 clause 1 art. 333.25 of the Tax Code, their assessment is carried out based on the value of the property, the rights to which are transferred by inheritance.

Thus, experts must be given access to objects, the property rights to which are transferred to successors.

For the assessment, you will need not only documentation for such objects, but also copies of all contracts under which such rights arise.

Why is it necessary to evaluate inherited property?

In accordance with current Russian legislation, entry into inheritance rights for an apartment or other residential premises is impossible if the value of the property has not been verified by a professional appraiser. The process of registering an inheritance is regulated by Article 35 of the Constitution of the Russian Federation, Part 3 of the Civil Code of the Russian Federation. So, why is an apartment appraisal done?

1. Based on the estimated value of the property, the amount of state duty is calculated, which goes towards paying for notarial actions for registering an inheritance.
   The state duty is calculated as a percentage of the value of the property. But close relatives of the testator do not have to pay income tax on inheritance if the deceased owned the apartment for more than three years.
2. The appraised value of the apartment helps to establish its share in the total inherited property of the deceased .
   In this case, not only the real estate object is assessed, but also all other property. Based on this information, the heirs can distribute their shares in the inherited estate and fairly divide it among themselves.
3. Information about the appraisal of the apartment will be required if there is a lawsuit for the inheritance.
   In order to fairly and correctly divide property between heirs, the judge must know its exact value.
4. An appraisal report will be required when registering the apartment as the property of the heirs. It will need to be provided to all authorities.

IMPORTANT: The only document confirming the value of an apartment that is accepted by notaries, judges and other officials is the conclusion of a professional independent appraiser.

Cost of inheritance valuation

Valuation activities must be rewarded - this right of the appraiser is determined by Art. 14 Federal Law “On valuation activities in the Russian Federation”. The amount of remuneration, according to Art. 16 of the law cannot depend on the final price established by a report compiled by a specialist.

According to Art. 10 of the law, the amount of remuneration is a mandatory clause of the contract with the appraiser, therefore the cost of the service should be discussed before the appraisal activities.

The legislation does not regulate the cost of assessment, therefore each appraiser or expert organization has the right to determine the amount of remuneration independently.

As a rule, each subject of valuation activity has its own price list, in which the amount of remuneration is made dependent on the object of evaluation. Prices vary, but we were able to find some patterns.

Vehicles

The amount of remuneration for the valuation of vehicles will depend on their type. Thus, it is quite logical to assume that the valuation of motorcycles will be cheaper than the valuation of cars or trucks.

Most often, experts set fixed amounts depending on the type of vehicle, of course, with a regional adjustment. So, if prices for appraisers in the regions start from 1-3 thousand rubles, then a similar procedure in the capital will cost 5 thousand rubles and more.

Earth

Tariffs for land valuation have a more complex gradation. The amount of the expert's remuneration, as a rule, depends on the location of the land plot, its area, purpose, regional component and other subjective characteristics that determine the complexity of the assessment.

The tariff for land valuation usually starts from 7 thousand rubles in the regions and can exceed 100 thousand rubles in Moscow.

Real estate

The cost of an expert's report on real estate also depends on its type - the assessment of residential premises is much cheaper than commercial ones. Thus, for apartments, appraisers traditionally set a single tariff, which, as a rule, starts from 3 thousand rubles.

The tariff for assessing private houses and cottages is much higher, and sometimes even depends on the living space. Most often, the average cost of such events is 9-10 thousand rubles.

As for commercial real estate, its valuation is the most expensive and is always determined by the area of ​​the premises. Prices start from 25 thousand and can exceed 100 thousand rubles.

Valuation of property when entering into an inheritance: professional services in Moscow and the Moscow region

Various experts may be involved in the appraisal depending on the type of property and the procedures required. These could be specialists in the field of construction, automotive equipment, employees of the Ministry of Internal Affairs, weapons experts, etc.

Determining the value of housing or other real estate occupies the most significant place among the number of assessments of inherited property.

Automobile

To evaluate shares, specialists study the stock market and quotes of various securities.

Share in LLC

When inheriting a share in a company, a notary needs a protocol confirming the value, drawn up on the date of the testator’s death. To evaluate the share, the expert must submit:

• constituent documentation of the company;
• information about the organization's registration with the tax authority;
• information about the license;
• if desired, the company’s business plan for the coming period.

Land plot

Determining the price of a land plot is carried out in one day and will cost the successor in the amount of 2.5 thousand rubles.

Competency in assessing inheritance is necessary for everyone. Contacting the group’s specialists is a guarantee that the process will go smoothly and that the assessment will be accurate and objective.