Disclaimer: This article provides general information on South Carolina probate processes. It does not offer legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In South Carolina, fair market value (FMV) is the price a willing buyer would pay a willing seller for personal property, with neither under compulsion and both possessing reasonable knowledge of relevant facts. The probate process uses FMV to determine estate tax, creditor claims, and distributions.
1. Appointment of Appraisers
Under S.C. Code Ann. § 62-3-801, the personal representative requests the court to appoint three disinterested appraisers. These appraisers must take an oath per § 62-3-803 before starting the valuation (S.C. Code Ann. § 62-3-803).
2. Inventory and Appraisal
Appraisers inspect all tangible personal property, such as furniture, jewelry, vehicles, and collectibles. They prepare an itemized inventory and assign FMV to each entry based on:
- Comparable sales in open markets
- Professional appraisal reports for unique items
- Published valuation guides (e.g., Kelley Blue Book for vehicles)
- Condition adjustments (wear, repairs needed)
They complete the appraisal under oath and file it with the probate court per § 62-3-806 (S.C. Code Ann. § 62-3-806).
3. Court Review and Use of FMV
The probate court reviews the appraisal. If the values appear unreasonable, the court may order a reappraisal or require additional documentation. Final FMV figures determine:
- Estate tax if the estate exceeds state or federal exemption thresholds
- Creditor claim priorities
- Distribution shares among beneficiaries
Helpful Hints
- Gather recent sales data: Check online marketplaces for similar items.
- Engage professionals: Hire a certified appraiser for high-value or complex assets.
- Document condition: Take photos and note repairs or damage to support values.
- Keep multiple quotes: Compare several valuation sources to ensure accuracy.
- File timely reports: Submit your inventory and appraisal to the court by the deadline to avoid delays.