Detailed Answer
In Colorado probate proceedings, personal property must be listed on an inventory and appraisement filed by the personal representative within three months of appointment (C.R.S. §15-10-602). The law requires an appraisal by one or more disinterested persons who determine the fair market value (FMV) as of the date of the decedent’s death (C.R.S. §15-10-603). FMV is the price a willing buyer would pay a willing seller, both having reasonable knowledge of relevant facts and neither under compulsion.
Key Factors in Determining FMV
- Condition and age of the item
- Comparable sales of similar items in the local market
- Specialty markets (antiques, collectibles, vehicles, jewelry)
- Expert appraisals for high-value items
Common Appraisal Methods
- Comparative Sales Approach: Research recent sales of similar items through auction records or online marketplaces.
- Replacement Cost Method: Estimate the cost to replace the item new, then adjust for depreciation.
- Income Approach (rarely used): For items that generate income, estimate present value of future earnings.
Filing Requirements
The personal representative must attach signed appraisals to the inventory. If the court doubts an appraisal’s accuracy, it may order an independent appraisal at the estate’s expense. Failure to timely file or accurate valuation may expose the personal representative to liability.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a licensed Colorado attorney to discuss your specific situation.
Helpful Hints
- Hire a qualified, disinterested appraiser for items over $1,000.
- Keep detailed photos and receipts to support values.
- Use multiple comparables for consistency.
- File your inventory and appraisements before the three-month deadline.
- Consult probate rules for personal representative duties under C.R.S. Title 15, Article 10.