What Is Fair Market Value in Wisconsin Probate?

When someone dies owning personal property—furniture, jewelry, collectibles—Wisconsin law requires that each item’s fair market value (FMV) be declared in the probate inventory. FMV represents the price a willing buyer would pay a willing seller, neither under compulsion, as of the date of the decedent’s death. Proper valuation ensures accurate estate taxes, creditor claims and equitable distributions to heirs.

Statutory Framework

Wisconsin’s probate code directs how to determine FMV of personal property:

Definition of Value: Wis. Stat. § 851.01(5) defines “value” as the fair market value of property. (Wis. Stat. § 851.01)
Appraiser Appointment: The court or personal representative appoints at least two disinterested appraisers. (Wis. Stat. § 851.06)
Inventory and Appraisal: The personal representative must file an inventory and appraisal of all personal property within the time set by the court. (Wis. Stat. § 851.18)

Steps to Calculate Fair Market Value

Select Qualified Appraisers: Choose two or more individuals with relevant expertise who have no financial interest in the estate.
Inspect Each Item: Appraisers examine condition, age, provenance and any damage.
Research Comparable Sales: Identify recent sales of similar items at auctions, estate sales or through dealers. Record sale date, location and final sale price.
Adjust for Differences: Account for condition, rarity and market trends. For example, a rare 19th-century vase in pristine condition may command a premium.
Prepare Written Reports: Each appraiser signs an appraisal report stating FMV and methodologies used. The personal representative submits these with the probate inventory.

Key Factors Affecting Value

Market demand for specific property types.
Condition and any required restoration.
Provenance or historical significance.
Volume discounts if selling as a lot versus single items.

Filing the Appraisal

Once appraisals are complete, the personal representative files the inventory and appraisal report with the probate court. The court reviews the values for reasonableness before approving distributions. If a creditor or heir objects, the court may order a hearing or require a third appraisal.

Hypothetical Example

Jane Doe’s estate includes a set of collectibles sold recently at a local auction. Appraisers researched three comparable auction results from the last six months, adjusted for condition and auction fees, and arrived at FMVs between $2,200 and $2,500. They averaged these figures to report an FMV of $2,350.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified probate attorney to address your specific situation.

Helpful Hints

Document all comparables: save invoices, auction catalogs and online sale printouts.
Choose appraisers who specialize in the property type whenever possible.
Be transparent about any damage or restoration needs.
File inventory and appraisals promptly to avoid court sanctions.
Keep communication open with heirs to reduce objections.