Understanding Fair Market Value of Personal Property in North Dakota Probate
When a person dies holding personal property—furniture, collectibles, jewelry or vehicles—the estate’s personal representative must report the fair market value (FMV) of those items to the court. North Dakota law sets out the timing and criteria for determining FMV in probate.
1. What Is Fair Market Value?
Under North Dakota law, FMV is the price at which property would change hands between a willing seller and a willing buyer, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. In practice, FMV reflects what similar property sells for on the open market. This standard aligns with general appraisal principles and helps ensure that estate assets are accurately reported for creditor claims, distribution and tax purposes.
2. Statutory Requirements for Inventory and Appraisal
North Dakota Century Code (NDCC) Chapter 30.1-17 governs the probate inventory and appraisal process. Key provisions include:
- NDCC §30.1-17-01: The personal representative must file an inventory and appraisement within 90 days after appointment. View Chapter 30.1-17.
- NDCC §30.1-17-02: Inventory forms must list all personal property with its FMV as of the decedent’s date of death.
- NDCC §30.1-17-04: The court may require a formal appraisal by a qualified appraiser when values are uncertain or contested.
3. Steps to Calculate FMV
Follow these steps to arrive at a reliable FMV for each item:
- Identify the Property: List every item of personal property owned by the decedent on the date of death (e.g., furniture, electronics, artwork, vehicles).
- Research Comparables: Look at recent sales of similar items—online auction sites, estate sales, consignment shops or local classifieds. The closer the match in condition and age, the more accurate the FMV estimate.
- Obtain Professional Appraisals: For high-value items (antiques, fine art, jewelry), hire an appraiser accredited by a national organization (e.g., ASA, ISA). The appraiser issues a written report stating FMV as of the death date.
- Document Sources: Keep copies of sales receipts, auction listings, appraiser reports and photos. This creates an audit trail if heirs or creditors question values.
- Adjust for Condition: Deduct for wear, repairs needed or missing parts. An item in “like-new” condition may fetch a higher FMV than a worn piece.
- File the Inventory: Complete the court’s standard inventory form, showing each item’s FMV. Sign and file it within 90 days to comply with NDCC §30.1-17-01.
4. Dealing with Disputes
If beneficiaries or creditors dispute values, the personal representative can:
- Request the court to appoint an independent appraiser under NDCC §30.1-17-04.
- Submit written evidence of comparables or multiple appraisals.
- Attend a hearing to explain the valuation methodology.
Disclaimer: This article provides general information about North Dakota probate procedures and is not legal advice. Consult a licensed attorney for guidance on your specific situation.
Helpful Hints
- Begin your research early to avoid missing the 90-day deadline.
- Use multiple sources (online, local sales, professional appraisers) to triangulate FMV.
- Keep detailed records—good documentation reduces the chance of disputes.
- For vehicles, use guides like Kelley Blue Book adjusted for local market trends.
- Remember that sentimental value is not part of FMV for legal purposes.
- If in doubt, seek court guidance or a court-appointed appraiser to protect yourself and the estate.