Disclaimer
This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
In Nebraska probate, personal property must be reported at its fair market value (FMV) as of the decedent’s date of death. Nebraska law defines FMV as the price a willing buyer would pay a willing seller in an arm’s-length transaction. Executors and administrators must file an appraisal and inventory under Neb. Rev. Stat. §30-231 and §30-232:
- Neb. Rev. Stat. §30-231: Requires an executor or administrator to file a complete inventory of the estate’s personal property.
- Neb. Rev. Stat. §30-232: Requires an appraisement showing FMV for each item.
To calculate FMV:
- Identify Category: Separate items into categories (e.g., vehicles, jewelry, furniture, electronics, collectibles).
- Gather Data: For each category, collect recent comparable sales data:
- Vehicles: Use NADA Guides or Kelley Blue Book for make, model, mileage.
- Jewelry and Art: Obtain certified appraisals from qualified appraisers.
- Furniture and Antiques: Compare recent auction results or dealer listings.
- Electronics and Appliances: Check current retail prices, adjusted for depreciation.
- Adjust for Condition: Reduce comparable sale figures for wear, repairs, or obsolescence.
- Use Multiple Methods: Cross-check values using cost approach (replacement cost less depreciation) and market approach (comparable sales).
- Document Sources: Keep written appraisals, printouts, invoices, photographs and communications with appraisers.
- File on Time: Nebraska probate rules generally require inventory and appraisal within three months of appointment.
By following the statutory requirements and using reliable valuation methods, you ensure accurate reporting of FMV in the probate estate. A clear FMV helps confirm proper distribution to heirs and protects the personal representative from liability.
Helpful Hints
- Hire a Licensed Appraiser: Use professionals with Nebraska certification for complex or high-value items.
- Get Multiple Opinions: For unique assets, seek two or three appraisals to confirm a fair figure.
- Photograph Everything: Include condition photos in your inventory records.
- Use Probate Court Forms: Follow your county court’s inventory and appraisal forms to avoid filing errors.
- Keep Detailed Notes: Record each step of your valuation process for transparency.
- Consult Probate Guidelines: Review local court rules or consult a probate clerk for filing deadlines.
- Review Nebraska Statutes: Stay updated on any changes to Neb. Rev. Stat. §30-231 or §30-232.