Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In Alaska probate proceedings, the personal representative must determine the fair market value (FMV) of all personal property as of the decedent’s date of death. Under Alaska Statute AS 13.16.080, the representative files an inventory and appraisement listing each asset and its FMV.
1. Definition of Fair Market Value
FMV is the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion, both having reasonable knowledge of relevant facts.
2. Valuation Date
All valuations reflect the market conditions on the decedent’s date of death. After that date, fluctuations in market price do not affect the reported value.
3. Common Valuation Methods
- Comparable Sales: Use recent sales of similar items in Alaska. Document sale date, price, and condition.
- Professional Appraisal: Hire a certified appraiser for antiques, artwork, or unique collectibles. Ensure the appraiser follows the Uniform Standards of Professional Appraisal Practice (USPAP).
- Published Guides: For vehicles and machinery, use the National Automobile Dealers Association (NADA) guides, Kelley Blue Book, or similar publications. Report the retail or wholesale value accordingly.
- Securities and Investments: Value stocks, bonds, and mutual funds at the mean of the high and low trading prices on the valuation date, as reported by the exchange.
- Intangibles: For patents, trademarks, or goodwill, use an income or market approach with documented projections and discount rates.
4. Documenting Your Valuations
Keep written records for each valuation method you choose. Attach sale receipts, appraisal reports, publication excerpts, or exchange statements to the inventory filed with the court.
Helpful Hints
- Begin early: Start collecting sale data and appraisal quotes immediately after appointment.
- Use local resources: Contact Alaska auction houses or consignment shops for current market insights.
- Cross-check values: Compare multiple sources to ensure consistency.
- Keep detailed records: File all appraisal reports, receipts, and guide printouts with your inventory.
- Consult an attorney: If values are disputed, seek legal guidance to avoid potential challenges.