Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Maryland probate, the personal representative must list the fair market value (FMV) of a decedent’s personal property as of the date of death. Fair market value is the price at which property would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and neither under a compulsion to buy or sell.
Under Maryland law, the personal representative must file an inventory and appraisal of estate assets within three months of appointment. See Md. Est. & Trusts Code § 7-103. This document must list each item of personal property and its FMV at death.
To calculate FMV:
- Obtain independent appraisals for unique or high-value items (antiques, art, jewelry).
- Use comparable sales data for common items (furniture, electronics). Check auction results, classified ads, and online marketplaces dated as close to the date of death as possible.
- Apply depreciation if appropriate (vehicles, machinery) based on mileage, condition, and industry standards.
- Retain written appraisals, receipts, photographs, and research notes to support each valuation.
If the estate qualifies for small estate procedures (< $50,000 in personal property), the personal representative may use a simplified statement instead of a full inventory. See Md. Est. & Trusts Code § 7-201 and § 7-202.
If parties dispute a valuation, the Orphans’ Court may order an independent appraisal or hold a hearing to resolve differences.
Helpful Hints
- Start appraisals early to meet the three-month deadline under § 7-103.
- Use licensed or certified appraisers for high-value assets to improve credibility.
- Document all sources: invoices, auction catalogs, online listings with dates and prices.
- Keep detailed notes on condition, age, and provenance for each item.
- Review Orphans’ Court local rules for formatting and filing the inventory.
- Consider digital tools and databases for comparable sales research.
- Maintain clear communication with beneficiaries regarding valuations.