Detailed Answer
When a person passes away, the personal representative (executor or administrator) must identify and report the estate’s assets and their values to the probate court. For motor vehicles owned by the decedent, courts want a clear, documented basis for the value you list on the inventory and any accountings. In Montana, follow these practical steps to establish the fair market value (FMV) of your mother’s vehicles at the date of death and present that value to the court in a way courts typically accept.
1. Determine the correct valuation date and standard
Use the vehicle’s fair market value on the date of death (not a later sale price). “Fair market value” means the price a willing buyer would pay a willing seller for the vehicle in its current condition, with neither party under compulsion to act. Montana probate practice follows the general requirement that estate assets be inventoried and reasonably appraised for administration—see the Montana Code for rules governing decedents’ estates and fiduciary duties: Mont. Code Ann., Decedents’ Estates (Title 72).
2. Gather primary documentary evidence
- Title and registration: show legal ownership and model year.
- Odometer reading and vehicle condition records (photos, repair receipts, inspection reports).
- Insurance declarations showing insured value (helpful but not conclusive).
- Any recent purchase, sale, or trade-in offers or dealer statements.
3. Use multiple valuation sources
Court-friendly valuation is best supported by more than one source. Combine at least two of the following methods:
- Independent written appraisal: hire a qualified vehicle appraiser or licensed used-car dealer to prepare a dated, signed written appraisal that states the vehicle’s condition, mileage, comparable sales, and the appraiser’s FMV conclusion.
- Market guides: printouts from national valuation services (e.g., Kelley Blue Book, NADA Guides, Black Book) set to the vehicle’s year, make, model, mileage, options, and the correct geographic area. Save the print date and any assumptions.
- Comparable local listings: copies of ads or auction results for specific vehicles like the decedent’s (same year, model, mileage, and condition) from local listings, dealer inventories, or online auction sites, dated near the valuation date.
- Dealer or auction statements: a written estimate or offer from a dealer or local auction that sets the vehicle’s likely sale price.
4. Document condition and any deductions
Reduce the book value for defects the vehicle actually had on the date of death. Document items that lower value: high mileage, mechanical problems, body damage, aftermarket equipment removal, or required repairs. Attach photos and repair estimates to show why the vehicle’s FMV differs from the clean-guide value.
5. Prepare and file the inventory and appraisement
As personal representative, prepare the estate inventory listing each vehicle and your supporting valuation materials. In Montana probate practice the personal representative must account for estate assets and follow court rules for inventories and accountings—consult the relevant section of the Montana Code: Mont. Code Ann., Decedents’ Estates (Title 72). Attach copies of appraisals, valuation printouts, receipts, photos, and any dealer/auction offers to the inventory or keep them in the estate file to submit to the court or beneficiaries on request.
6. If beneficiaries or creditors dispute the value
If someone challenges the listed value, the court will weigh the evidence you submitted. An independent professional appraisal or multiple comparable sales typically carry strong weight. If necessary, the court may order a formal appraisal or permit testimony from appraisers or dealers.
7. Selling the vehicle during administration
If the estate must sell a vehicle, document the sale process: advertisements, bids, dealer offers, and the final sales contract. A transparent sale process at or above the FMV you listed will support your administration decisions to the court and beneficiaries.
8. Practical checklist for each vehicle
- Locate title, keys, and registration.
- Record VIN, mileage, and condition with dated photos.
- Obtain at least one written dealer/appraiser estimate and one market guide printout or comparable sales list dated near the date of death.
- Get a signed written appraisal if value is significant or disputed.
- Attach documentation to the estate inventory and keep originals with estate records.
Where to look for official Montana guidance
Montana’s statutes on decedents’ estates are the primary source for probate duties and inventories. You can review the Montana Code (Decedents’ Estates) at the Montana Legislature’s website: https://leg.mt.gov/bills/mca/title_72/. For vehicle title and transfer procedures (post-death transfers), consult the Montana Motor Vehicle Division (Dept. of Justice) vehicle services pages: https://dojmt.gov/driving/.
When to get a lawyer
If the estate includes high-value vehicles, complex liens, co-owners, contested valuations, or if beneficiaries or creditors contest administration, consult a Montana probate attorney. A lawyer can advise on formal appraisal requirements, defense of the reported values, and court filings.
Disclaimer: This is general information about Montana probate and vehicle valuation. It is not legal advice. For advice about a specific situation, consult a licensed Montana attorney.
Helpful Hints
- Start early: collect titles, keys, photos, and odometer readings immediately.
- Use the date-of-death valuation. If you use later data, clearly explain why.
- Prefer written appraisals from licensed appraisers or dealers when values are high or likely to be contested.
- Keep at least two independent valuation sources for each vehicle (appraisal + market guide or comparable sales).
- Document any liens, loans, or security interests; a vehicle’s net value equals FMV minus liens.
- If a vehicle was registered or titled jointly, check the title’s wording—some joint titles transfer automatically and may not be estate property.
- Maintain clear records of sale efforts and offers if you plan to sell; courts favor transparent, documented sales processes.
- If beneficiaries agree on value in writing, attach that agreement to the estate file; it can prevent later disputes.
- When in doubt, get a short written opinion from a Montana probate attorney before filing contested inventories.