Disclaimer: This article is for informational purposes only and does not provide legal advice.
Detailed Answer
In Rhode Island probate, a personal representative (formerly executor) must report the fair market value (FMV) of all personal property in the estate’s inventory and appraisal. Rhode Island statutes require that fiduciaries file an inventory and appraisal within 30 days of appointment. See R.I. Gen. Laws §33-17-3. The law does not define FMV in a single sentence, but courts and practitioners follow a standard approach.
What Is Fair Market Value? FMV is the price a willing buyer would pay a willing seller, both having reasonable knowledge of the relevant facts and neither under compulsion to buy or sell. The representative must estimate FMV as of the decedent’s date of death.
Statutory Guidance on Appraisals Under R.I. Gen. Laws §33-17-1, the fiduciary must list each item of personal property along with its FMV. Rhode Island probate rules allow the court to require independent appraisals when values exceed certain thresholds or when the court deems them necessary to protect heirs.
Common Valuation Methods
- Independent Appraisal: Hire a certified appraiser with probate experience. The appraiser visits the decedent’s residence, examines each item, and issues a written report stating FMV.
- Comparable Sales: Research recent sales of similar goods. Use online auction sites, estate sale records, or dealer price guides to find comparable market data.
- Auction Estimates: Consult auction houses, especially for high-value items like antiques, art, or collectibles. Auction estimates often reflect current market demand.
- Retail Replacement Cost: For household items of modest value, use retail replacement cost minus depreciation for age and condition.
How to Document Your FMV Determination
- List each item with description, condition, and location.
- Attach appraisal reports, price-guide printouts, and screenshots of comparable listings.
- Note the date of each comparison source.
- Retain appraiser invoices and correspondence.
- File the complete inventory and appraisal with the probate court by the deadline.
Helpful Hints
- Start valuation early to allow time for appraisals and document gathering.
- Use a mix of methods for high-value versus low-value items to save costs.
- Keep all records organized in chronological order.
- Ask the probate clerk if the court has local fee thresholds for independent appraisals.
- Consult a probate attorney if values exceed estate-tax or creditor-notice thresholds.