Disclaimer: This article is for general information only and does not constitute legal advice. Consult an attorney for advice on your specific situation.
Detailed Answer
In Kentucky probate, the personal representative must file a complete inventory and appraisement of a decedent’s personal property under KRS 396.360. Each item must be assigned its fair market value (FMV) as of the decedent’s date of death. FMV is defined as the price a willing buyer and willing seller would agree to in an arm’s-length transaction, with both parties having reasonable knowledge of the relevant facts.
To calculate fair market value, follow these steps:
- Obtain professional appraisals for unique or high-value assets such as artwork, antiques, jewelry, and collectibles.
- Use reputable valuation guides or online market data for vehicles, electronics, and common collectibles. For example, reference Kelley Blue Book or NADA guides for automobiles.
- Determine the closing market price on the date of death for publicly traded stocks, bonds, and mutual funds.
- Estimate value for household goods and personal effects by reviewing comparable sales on sites like eBay or local auction records.
After establishing FMV for each category of property, list every item and its appraised value on the probate inventory form provided by the county court clerk. The inventory must be filed within four months of appointment of the personal representative, unless the court grants an extension.
If beneficiaries or creditors dispute any valuation, the court can order additional appraisals or schedule a hearing to resolve disagreements.
Helpful Hints
- Confirm that all valuations reflect the date of the decedent’s death, not the date you perform the appraisal.
- Retain written appraisals, receipts, and records of your valuation sources to support each figure in the inventory.
- For high-value items, secure at least two independent appraisals to ensure accuracy and reduce disputes.
- Review probate inventory forms and instructions on the Kentucky Administrative Office of the Courts website.
- If valuation disputes arise, consider seeking guidance from a probate attorney experienced in Kentucky law.