Detailed Answer
When a person dies in Michigan, the probate court requires all personal property to be appraised at its fair market value (FMV) as of the date of death. FMV is the price that a willing buyer and a willing seller would agree upon, with neither under undue pressure and both having reasonable knowledge of relevant facts.
Under Michigan law, the court appoints three disinterested citizens as appraisers at the initial probate hearing. These appraisers take an oath and inspect every piece of personal property—furniture, vehicles, collectibles, jewelry, and more. They must file a detailed inventory, stating the FMV of each item, within one year of their appointment (MCL 700.1315 and MCL 700.1316).
Appraisers determine FMV by considering:
- Published valuation guides (for example, Kelley Blue Book or NADA for vehicles)
- Recent sales of comparable items at local auctions or marketplaces
- Completed listings on online platforms (eBay, Craigslist)
- Professional appraisals for specialized property (artwork, antiques, jewelry)
Each item on the inventory must list a description, condition, and FMV as of the decedent’s date of death. If any interested party disputes a valuation, they may file exceptions with the court. The court can then hold a hearing, during which expert testimony may be required to resolve disputes.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a licensed attorney to discuss your specific circumstances.
Helpful Hints
- Collect documentation such as receipts, purchase records, and photographs to support valuations.
- Cross-check values using multiple reputable sources to ensure accuracy.
- Provide clear labels and descriptions for each item to streamline the appraisal process.
- Obtain professional appraisals for high-value or unusual property to avoid later challenges.
- Submit the inventory and appraisal on time to comply with court deadlines and avoid penalties.