mastering real asset compliance

Mastering Real Asset Compliance: A Comprehensive Guide for Trusts and Estates

Most Trustees will have an appraisal performed to update a client’s property value and make an informed decision to either hold or sell the asset. To comply with the Office of the Comptroller of the Currency-recommended triennial valuations, date of death and disbursement, or gifting, appraisals are typically requested through an approved list or an appraisal management company (AMC). 

While an appraisal checks most boxes, it is often an unnecessary, timely, and expensive service to request.

7 Issues Trustees Face When Keeping Assets in Compliance

Trustees play a pivotal role in managing assets and ensuring compliance with various regulations and standards. However, this responsibility comes with its own set of challenges. Here are some common issues trustees face when striving to keep assets in compliance.

1. Age Disparities Among Appraisers

Trustees often encounter challenges in finding qualified professionals for property valuation and inspection, particularly due to the average age of appraisers being over 50 years old. 

This age demographic can limit the pool of available experts, impacting the timely and effective assessment of diverse assets. 

2. Geographical Dispersion of Assets

Trustor assets are frequently spread across different regions, making it challenging to locate and coordinate with professionals to evaluate and inspect properties comprehensively. 

This geographical dispersion can hinder the efficient management of assets and adherence to compliance standards. 

3. Ensuring Regular Property Inspections

Conducting routine inspections on real assets is crucial to identify and address potential issues such as damage, hazardous materials, and structural concerns. 

Trustees often face the difficulty of organizing and overseeing these inspections, especially when properties are situated in diverse locations.

4. Dependency on Third-Party Professionals

Trustees often need to engage third-party inspectors and appraisers, particularly when managing properties outside their local area.

Coordinating with these external professionals can be a complex and time-consuming process, leading to potential communication challenges and delays.

5. Navigating Compliance Requirements

Trustees must stay up-to-date on evolving compliance regulations, including those recommended by organizations such as the OCC (Office of the Comptroller of the Currency). 

Navigating these requirements and ensuring that assets align with the prescribed valuations, especially in triennial cycles, date of death, disbursement, or gifting scenarios, poses an ongoing challenge.

6. Managing Inspections and Appraisals Separately

Trustees can find themselves dealing with inspectors and appraisers separately, adding an additional layer of complexity to the compliance process. 

Coordinating and aligning the efforts of these professionals can be logistically challenging.

7. Time and Cost Constraints

The request for appraisals is often perceived as an unnecessary, time-consuming, and expensive service. 

Trustees must balance the need for thorough assessments with cost-effective and efficient approaches. 

In addressing these challenges, trustees may explore streamlined solutions and professional services, such as those offered by companies like Akrivis, to alleviate the complexities associated with maintaining asset compliance.

Are Akrivis Evaluations Compliant With OCC Regulations?

Yes, our evaluations satisfy all the current recommendations set forth by the OCC to keep trust portfolios in compliance. 

Every evaluation and hybrid appraisal at Akrivis contains a Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) checklist. FIRREA established new capital reserve requirements and increased public oversight of the real estate appraisal process. 

This means there are other options for valuing real assets effectively that are regulated by the Interagency Appraisal and Evaluation Guidelines as well as the OCC. These same evaluations and hybrid appraisals are available to Trust and Estate Management.     

Our hybrid appraisal is Uniform Standards of Professional Appraisal Practice (USPAP) compliant, follows an appraiser’s approach to value, and is completed and signed by a certified general appraiser on our staff. 

You can request an appraisal from Akrivis if you live in Colorado, Florida, Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, Oklahoma, Texas, and Wisconsin, and you’ll receive the same turnaround times as our evaluations.

How Does Akrivis Perform Nationwide Trust Compliance?

At Akrivs, we combine innovation and evolving technology with our exclusive network of photography contractors to deliver commercial, residential, and agricultural/vacant land valuations and inspections for real assets held in trusts, estates, and wealth/asset management. 

With more than 5 million properties valued in the past 20 years, Akrivis has become a reliable valuation and inspection provider nationwide.

Akrivis will provide OCC-recommended triennial valuations and annual site visits with auto-renew features to schedule and maintain your real estate portfolio easily. Use our online portal to easily order your valuation or site visit, and never worry about needing a quote or turn time again. 

Our prices are already set, and our lead time is just 5 business days.  With a network of trusted property inspectors, Akrivis provides up-to-date rehabilitation analysis, property data reports, and annual site inspections. This makes compliance a breeze with just one point of contact to satisfy inspections and valuations with the same friendly and professional Akrivis team. 

We also offer replacement cost values (RCV) for insurance purposes and income-approach for income-producing properties.

Streamline Your Fiduciary Processes

With Akrivis, you can confidently streamline your fiduciary processes and products by choosing accurate, efficient, and regulated evaluations over full appraisals. At a fraction of the cost and turn time, evaluations and hybrid appraisals are the best property value resources for Real Asset maintenance and disbursement.  

Think this is all too good to be true? It gets even better. We do not have contracts, subscriptions, or any hidden fees, and setup is free. Trustees and their teams will have access to our portal to place orders and keep track of your portfolio. 

Order now to enter your property information in minutes, and within 5 business days, receive your fiduciary real estate evaluation. 

Have questions? Contact our real estate valuation experts!

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