--- title: "Estate Settlement Equipment Appraisal: What the Process Involves" description: Whether you're heading towards retirement and estate planning or have had a recent loss, estate settlement equipment appraisal helps with the process. Read more. image: https://www.equipmentappraisal.com/hs-fs/hub/79772/file-440990835.jpg --- [![Machinery and Equipment Appraisals](https://www.equipmentappraisal.com/hubfs/Images/equipment-appraisal-services-header-logo.svg "Machinery and Equipment Appraisals")](https://www.equipmentappraisal.com) ![Machinery and Equipment Appraisers phone](https://www.equipmentappraisal.com/hubfs/Images/machinery-and-equipment-appraisers-phone3a.svg)   # Equipment Appraisal Blog | Understanding Machinery Appraisals ## [Estate Settlement Equipment Appraisal: What the Process Involves](https://www.equipmentappraisal.com/blog/estate-settlement-equipment-appraisal-what-the-process-involves) Posted by [Equipment Appraisal Services](https://www.equipmentappraisal.com/blog/author/equipment-appraisal-services) on Mon, Apr 29, 2019 @ 08:00 AM - [Tweet](https://twitter.com/share) ![estate settlement asset appraisal](https://www.equipmentappraisal.com/hs-fs/hub/79772/file-440990835.jpg?width=191&name=file-440990835.jpg) Whether you've had a recent loss or are simply planning your retirement and estate, dealing with your machinery can be a serious issue. Fortunately, estate settlement equipment appraisal can provide you with a lot of the answers you need to get everything settled properly, allowing your family to more easily get through the process with fewer arguments and hurt feelings. Here's a look at how the process works, including a few different situations where different approaches may be used to calculate value. # How Does Estate Settlement Equipment Appraisal Happen? Let's start by taking a look at a couple different situations. In the first, the family of the deceased is happy to wait for the right buyer to maximize their benefits. They want to get the best possible value for the equipment and have conveyed this to the appraiser, who uses fair market value to determine the value of the equipment assets of the estate. The machinery is listed on the market, but may not sell quickly. This can be an issue if the space it is located in needs to be sold or a lease ended. In the second situation, the family simply wants to have the process finished as quickly as possible so that they can plan for the future. At this point, the appraiser uses a different approach to calculate the value of the machinery, because they assume that the equipment must be sold at a discount to make it sell faster. Referred to as liquidation value, this can either be used as a forced liquidation, which provides the minimum value, or ordered liquidation, which allows at least a short amount of time to find a better buyer. But what if the family members don't agree on what should be done with the machinery? Perhaps one family member will be continuing the business. In this case, the fair market value that is calculated can be used as a basis to secure a bank loan to pay off the remaining family members, allowing them to quickly receive their funds while the family member who is continuing the business has an easier approval process, because the value of the machinery has already been verified through a standardized methodology. In yet another situation, some of the family members want to wait for the best possible return while others want to have the process completed quickly. In this situation, having individual machines appraised means that the estate can be split, with those who want the best possible return holding onto their equipment and those who want to quickly turn the estate around selling at liquidation rates. If you think you may face this situation, it may make sense to split the estate in advance of need and have the groups appraised accordingly to expedite the process. By incorporating estate settlement equipment appraisal into your overall estate planning or settlement process, you can rest at ease knowing that the value of your machinery is being calculated by a professional appraiser who understands your industry and the issues that are involved with estate settlement. However, it's vital that you work with a certified equipment appraiser, as this ensures that the methodologies used will bear up in legal and financial circles, such as probate court or a family member who needs to get a loan to finance buying out other parties in the business. 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