Detailed Answer
In Arkansas probate, the personal representative must inventory all personal property of the decedent and appraise each item at its fair market value (FMV) as of the date of death. Arkansas Code defines FMV as the price a willing buyer would pay a willing seller in an arm’s-length transaction. The probate court requires submission of this inventory and appraisement to finalize estate administration.
Legal Requirement
Under Ark. Code Ann. § 28-13-706, appraisers must list personal property on the inventory at its “fair cash value” on the date of death. This statute guides the valuation process and ensures consistency across estates.
Steps to Determine Fair Market Value
- Appoint qualified appraisers. Probate courts often require two independent appraisers. Select professionals with expertise in antiques, jewelry, vehicles, or other relevant categories.
- Research comparable sales. Look at recent sales of similar items in local markets or online platforms to gauge current prices.
- Consult published price guides. Use auction records, dealer catalogs, and industry-standard guides for collectibles, art, and high-value items.
- Assess item condition. Document wear, repairs, or damage that may affect value, and adjust the estimate accordingly.
- Record valuation methods. Keep detailed notes on sources, comparables, and calculations to support each appraisal in court.
Role of the Probate Court
After appraisers file the inventory and appraisement, the court reviews the values. Interested parties may object if they believe an item is misvalued. The court can order a re-appraisal or require appraiser testimony before approving the final inventory.
Helpful Hints
- Begin appraisals promptly to meet probate filing deadlines.
- Gather receipts, purchase records, and prior appraisals to substantiate claimed values.
- Obtain specialized appraisals for unique or high-value items like fine art or rare collectibles.
- Share preliminary valuations with heirs to prevent disputes later in the process.
- Keep copies of all inventory documents and court approvals for your records.
Disclaimer: This article provides general information about Arkansas probate procedures. It does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.