Tip #4:

Probate + Retrospective Appraisal

Typically this type of appraisal is a retrospective appraisal with an effective date of the report that occurred before the actual date of the inspection of the property.

This type of appraisal establishes a defensible market value for a property at a particular point in time.  This is critical for estate planning and for Probate purposes.

What happens to the principal residence at death?

The Income Tax Act deems a person to have disposed of their principal residence for proceeds equal to its fair market value at that time of death.

When an individual dies, they are considered to have sold everything they own on the day they die.  This is for fair market value as of the date of death.

This is called a deemed disposition.

Deemed disposition – used when you are considered to have disposed of property, even though you did not actually sell it.