Disclaimer: This content is for educational purposes only and does not constitute legal advice.
Detailed Answer to Calculating Fair Market Value of Personal Property in Arizona Probate
In Arizona probate, a personal representative must inventory and appraise the decedent’s assets, including personal property, at fair market value (FMV) as of the date of death. The process follows Arizona Revised Statutes (A.R.S. §14-3806).
1. Identify Personal Property
Personal property includes movable items such as furniture, vehicles, artwork, jewelry, collectibles and other tangible goods.
2. Understand Fair Market Value
Fair market value is the price at which property would change hands between a willing buyer and seller, neither under compulsion and both with reasonable knowledge of relevant facts. This definition aligns with common law principles and Arizona probate practice.
3. Select Appropriate Valuation Methods
- Published Guides: Use industry-standard guides (e.g., Kelley Blue Book for vehicles, NADA, auction records) to estimate FMV.
- Professional Appraisals: Obtain written appraisals from qualified, independent appraisers for assets like jewelry, artwork or antiques. Courts may require court-appointed appraisers under A.R.S. §14-3805.
- Comparable Sales: Research recent sale prices for similar items in your area.
4. File Inventory and Appraisal
The personal representative must file an inventory and appraisal within 60 days of appointment, as required by A.R.S. §14-3806. The filing must list each item, its description and its FMV.
5. Address Objections and Reappraisal
Interested parties may object to appraised values. If objections arise, the court can appoint neutral appraisers to revalue assets (see A.R.S. §14-3805).
Helpful Hints
- Gather Documentation: Keep receipts, purchase records and prior appraisals to support valuations.
- Use Multiple Sources: Cross-verify values using at least two valuation methods.
- Meet Deadlines: File the inventory and appraisal within 60 days to avoid court penalties (A.R.S. §14-3806).
- Consult Professionals: While this guide offers general information, consider speaking with a probate attorney for personalized advice.
- Maintain Records: Retain all appraisal reports and valuation evidence in case of court review.