My advice is for the institution to establish a policy pertaining to the
counting/booking of all bequests - not just real estate. This will avoid
internal fussing down the road especially when possible counting dates can
cross fiscal years.
In theory, the date the donor executes their will (dies) the gift is
yours. However, that assumes there are no contests against the will. And
that certainly isn't the date of gift when you are named to receive R&R
(rest and residue).
My personal opinion is to treat and record these the same as all gifts - as
of the date received or processed. When it comes to real estate that would
typically mean the settlement date, however, I will never "backdate" a gift
on my system. So the date I use is processed date always - but will use
the value as of the date the gift became mine legally.
As for what value you should use if there is no appraisal, I would use the
amount your CFO feels comfortable booking on the GL.
John
John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
On Wed, Apr 17, 2019 at 7:21 AM Wilmoth, Karen <
wilmothk@dewv.edu> wrote:
> We recently inherited a number of properties from an alum who passed
> away. When do we book the properties – date of death, date of estate
> settlement, some other date? If the executor doesn’t have the properties
> appraised, I assume we can use the appraisal that is the basis for real
> estate taxes – is that correct?
>
>
>
> Karen L. Wilmoth ‘83
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