Detailed Answer
When a loved one dies in Iowa, the executor or administrator must inventory and appraise all personal property in the estate. Iowa Code §633.42 requires the inventory to list each tangible item and assign a fair market value as of the decedent’s date of death. Fair market value (FMV) is defined as the price a willing buyer would pay a willing seller in an open, unrestricted market, with neither party under duress.
The executor typically appoints two or more disinterested appraisers. These appraisers inspect items such as vehicles, jewelry, artwork, furniture, and collectibles. They determine FMV by considering:
- Sales of similar items at estate or public auctions
- Professional appraisal reports for specialized or high-value items
- Industry pricing guides (for example, NADA Guides for vehicles)
- Comparable listings on online marketplaces for ordinary household goods
After appraisers sign and submit their report, the executor files the inventory and appraisement with the probate court. The court reviews and typically approves the values. If creditors, beneficiaries, or other interested parties dispute an appraisal, they may petition the court for a reappraisal or adjustment. The final approved FMV establishes the estate’s value for distribution, payment of debts, and estate tax purposes.
Disclaimer: This article provides educational information and does not constitute legal advice.
Helpful Hints
- Initiate the appraisal process promptly to adhere to probate deadlines.
- Compile documentation such as receipts, photographs, and prior valuations to support FMV.
- Retain professional appraisers for artwork, antiques, jewelry, and vehicles.
- Cross-reference multiple data sources—auction results, sales records, and pricing guides.
- Keep appraiser reports and inventory copies in the probate file.
- File objections early if you believe an item’s valuation is inaccurate.