How Is the Fair Market Value of Personal Property Calculated in a Probate Case in New Mexico?
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for advice specific to your situation.
Detailed Answer
Appraisal Requirements under New Mexico Law
Under NMSA 1978 § 45-2-801, the personal property of a decedent’s estate must be inventoried and appraised. The probate court appoints at least three disinterested appraisers to determine value. See NMSA 1978 § 45-3-801 (Appraisement; appointment of appraisers).
Definition of Fair Market Value
Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion and both having reasonable knowledge of relevant facts. New Mexico probate courts apply this standard when valuing estate assets.
Appraisal Process
Appraisers inspect property as of the date of the decedent’s death. They consider:
- Condition and age of items
- Comparable sales and market data
- Professional appraisals for unique items (art, collectibles)
- Location and costs of sale (e.g., auction, private sale)
Filing the Appraisement
After valuing the estate, appraisers file a return of appraisement with the probate court before the inventory deadline. Once approved, these values set the estate’s personal property worth for distribution and any tax filings.
Helpful Hints
- Gather receipts, past appraisals and recent sales data before appraisers review.
- Hire a qualified appraiser for high-value or hard-to-value items.
- Review comparable sales online to understand current market trends.
- Keep detailed photos and descriptions to support valuation conclusions.
- Meet all court deadlines for filing inventory and appraisement to avoid delays.