Detailed Answer
In New Jersey probate, the executor or administrator must file an inventory and appraisal of all personal property within six months of appointment. New Jersey law defines fair market value (FMV) as the price at which property would change hands between a willing buyer and a willing seller, neither under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Under N.J.S.A. 3B:12-12, the fiduciary must attach a sworn inventory listing each category of personal property and its FMV. You can review the statute here: N.J.S.A. 3B:12-12. If the will names appraisers, the fiduciary uses them; otherwise, the Surrogate may appoint two or more disinterested appraisers to determine value.
To calculate FMV, appraisers typically:
- Inspect condition, age, and functionality of items
- Compare recent sale prices of similar items on auctions or retail markets
- Account for location, rarity, and demand
- Factor in any necessary repairs or restoration
For household goods (furniture, electronics), appraisers often use local resale platforms and consignment shop data. For collectibles, fine art, or jewelry, they may enlist certified specialists. Once appraisals are complete, the executor lists each item or category of items with its FMV on the inventory. The Surrogate’s office reviews the inventory and may request additional documentation or a hearing if values appear unrealistic.
Helpful Hints
- Start valuation early to avoid delays in probate administration.
- Use at least two independent appraisals for high-value items.
- Collect and retain written appraisal reports for Surrogate review.
- Document comparable sales to support FMV estimates.
- Consult the Surrogate’s local practice notes for inventory formatting requirements.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.