How to add real estate to the inventory
- In the Inventory section, click Add New in the top-right corner. Then, choose asset type Real Estate.
- For an estate file: enter the Date of Death Value of the item. It should be the fair market value at the time of death, ideally provided by a licensed appraiser. Reflect the market value of the entire property, even if it is co-owned.
- Enter the Current Value of the item. It should be the fair market value, ideally provided by a licensed appraiser. Reflect the market value of the entire property, even if it is co-owned.
- Select the Ownership type and indicate the share the deceased or settlor owned.
e.g. In the case of an estate file: if the deceased owned 50% of a property with his or her spouse, the deceased's Ownership Percentage should be 25%. If this is the case, the spouse's share may need to be entered as a liability.
- Enter the original purchase price of the entire property.
- Select whether the home is a Primary Residence, Secondary Residence, or other.
- Enter the full address of the property.
How to link a mortgage to a real asset
If there is a mortgage (hypothec in Quebec) on the house, the mortgage should be entered in Liabilities, under Loans Payable.
When creating the mortgage, indicate that the loan is secured. Once you do, you will be able to link the liability to the house.
If the property is later sold by the estate, the actual sale price should be entered in the accounting section, but the Estimated Market Value should not be modified.
Family Patrimony and real estate (Quebec estates only)
In Quebec, if the deceased has a surviving spouse from a marriage or civil union, the family homes (i.e., excluding commercial or rental real estate) may need to be included in the Family Patrimony, unless they were inherited or gifted to the deceased.