Private assets and real estate records and questions checklist
Private business, real estate, and investment records can describe ownership, value, income, liabilities, and transfer terms. This checklist explains records and questions that owners, spouses, and adult children can use to understand those assets. Estate tax return instructions identify specific business records, while valuation and co-ownership issues vary by asset and arrangement.
Business ownership and financial records
Business records describe an interest's assets, liabilities, and earnings. Estate tax return instructions call for five years of statements for a decedent's partnership or unincorporated business interest, including goodwill.
Valuation records and questions
Fair market value for gift and estate tax is measured at transfer as a price between hypothetical willing parties who are neither compelled nor uninformed.
Real estate ownership and co-ownership
Real estate structure depends in part on whether a property is for personal use or income production. Co-ownership records can describe owners' rights and obligations.
Gifted property and transfer records
Gifted property records describe basis and transfer conditions.
Common questions
What business statements appear in estate tax return instructions?
The instructions call for five years of asset, liability, and net-earnings statements for a decedent's partnership or unincorporated business interest. The return also accounts for goodwill.
What can co-ownership records clarify?
Ownership records can identify tenancy in common or joint tenancy. Practitioners say each tenant in common or joint tenant has a right of partition, meaning any one owner can compel a court to physically divide the property. Fractional real estate records can also describe co-owner decisions about management, rights, obligations, and succession.