Understanding Fair Market Value of Personal Property in Utah Probate Cases
Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When someone passes away in Utah, the personal representative (formerly called the executor) must inventory and appraise all personal property owned by the decedent. Under Utah Code § 75-3-401 et seq., the representative files an inventory with the probate court. Utah Code § 75-3-801 (Appraisement of estate property) requires that personal property be appraised at its fair market value as of the date of the decedent’s death.
Fair Market Value (FMV) means 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.
Steps to Calculate FMV:
- Gather Records: Compile purchase receipts, photographs, serial numbers, and past appraisals.
- Identify Comparable Sales: For common items (furniture, electronics), review recent sales on online marketplaces (eBay, Craigslist) or estate-sale reports.
- Use Industry Guides: Vehicles often use the Kelley Blue Book or NADA guide to establish FMV.
- Obtain Professional Appraisals: Hire a licensed appraiser for high-value or unique items—art, antiques, jewelry—to produce a written appraisal.
- Complete the Inventory: File a written inventory and appraisement with the court, typically within three months of appointment per Utah Code § 75-3-403 (Inventory by personal representative).
- Court Approval and Objections: Creditors or heirs may object to valuations. The court can order reappraisal or hold a hearing.
By following these steps, the personal representative ensures compliance with Utah’s probate statutes, helps the court determine estate value for creditor claims and distribution, and minimizes disputes among heirs.
Helpful Hints
- Start Early: Begin gathering valuation data as soon as you are appointed to avoid last-minute rushes.
- Document Everything: Keep copies of all appraisals, photos, and market comparisons in case of court review.
- Consult Experts: For specialized property (collectibles, intellectual property), seek professionals licensed in that field.
- Use Reliable Sources: Rely on established price guides and auction results for consistency.
- Watch Deadlines: Utah law mandates filing the inventory and appraisement within three months to avoid court sanctions.
- Maintain Transparency: Inform heirs and beneficiaries about valuation methods to reduce challenges.