Detailed Answer
In Louisiana successions (probate), the succession representative must list personal property at its fair market value as of the decedent’s date of death. Louisiana Code of Civil Procedure Article 2871 requires an inventory and appraisement filed within four months of qualification. The appraisement serves as prima facie evidence of value in the succession proceeding. For full text, see La. Code Civ. Proc. art. 2871: https://legis.la.gov/Legis/Laws.aspx?Code=CCP&Chapter=11.
Fair market value (FMV) means the price a willing buyer would pay a willing seller, neither under compulsion, both having reasonable knowledge of relevant facts. To determine FMV, representatives routinely:
- Review recent sales of similar items (e.g., comparable furniture or collectibles).
- Obtain written appraisals from licensed appraisers for high-value or unique items.
- Consult dealer or auction house price lists for jewelry, art, or antiques.
- Use reputable online guides or market reports for electronics, vehicles, and equipment.
If no comparable sales exist, you may use the replacement cost minus depreciation method. For detailed rules on valuations and exceptions, see La. Rev. Stat. § 9:2801 (Inventory, Appraisement, and Interest): https://legis.la.gov/Legis/Laws.aspx?Code=RS&Section=2801.
After gathering evidence, list each item with its FMV in the inventory and appraisement. Keep documentation—receipts, appraisal reports, or screenshots of comparables—to support the values. Courts accept appraisements unless another party presents contradictory evidence.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Start your valuation early to meet the four-month deadline under La. Code Civ. Proc. art. 2871.
- Use multiple valuation methods to cross-check values and build credibility.
- Hire a Louisiana-licensed appraiser for items over $5,000 to avoid disputes.
- Maintain a clear record of dates, sources, and methodologies for each valuation.
- Review La. Rev. Stat. § 9:2801 for rules on interest and penalties related to inventory delays.