Detailed Answer
Legal Framework for Probate Valuation in Oregon
Under Oregon law, a personal representative must inventory and appraise all estate property, including personal property, at its fair market value as of the decedent’s date of death. Key statutes include:
- ORS 113.465 – Inventory and appraisal requirements
- ORS 113.473 – Waiver of appraisal in limited cases
- ORS 311.390 – Definition of “fair market value”
Defining Fair Market Value
ORS 311.390 defines fair market value as the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion to buy or sell, with both having reasonable knowledge of the relevant facts.
Step-by-Step Valuation Process
- Prepare an Inventory and Appraisal: File the inventory within six months of appointment, per ORS 113.465(1).
- Select Appraisers: Choose two disinterested persons knowledgeable about the type of property. They must view or otherwise ascertain value as of date of death (ORS 113.465(2)).
- Determine Value:
- Use recent comparable sales for similar items.
- Consult professional appraisers for antiques, collectibles, and specialized equipment.
- Consider condition, provenance, market trends, and liquidity.
- Document Findings: Appraisers sign under oath, certifying values accurately reflect fair market value.
- Submit to Court: Attach the signed appraisal to the inventory filed in probate court.
Hypothetical Example
Imagine decedent owned a set of vintage coins. Two appraisers research recent auction results and find similar sets sold for $2,500 and $2,800 in the prior year. They average these figures and consider condition differences, ultimately assigning a fair market value of $2,650, which the personal representative files under ORS 113.465.
Helpful Hints
- Hire appraisers with credentials in antiques or collectibles when necessary.
- Gather sales data for comparable items sold close to the decedent’s date of death.
- Keep detailed notes on condition, age, and provenance of collectibles.
- Review court rules for format and deadlines to avoid delays or objections.
- Consider professional liability insurance to protect against valuation disputes.