Detailed Answer
In a Delaware probate case, an executor or administrator must file an inventory of the decedent’s assets within three months of appointment. Del. Code Ann. tit. 12, § 901(2) requires that personal property be listed at its fair market value (FMV) as of the date of death.
Fair market value is defined as the price at which the property would change hands between a willing buyer and a willing seller, neither under compulsion and both having reasonable knowledge of relevant facts. To establish FMV, use one or more of the following methods:
- Comparative sales analysis: Research recent arm’s-length sales of identical or similar items in auction records or online marketplaces.
- Independent appraisal: Hire a licensed appraiser for unique items such as jewelry, antiques, or artwork.
- Professional valuation services: Engage valuation firms for vehicles, machinery, or business interests.
After determining FMV, document your methodology and retain supporting materials—appraisal reports, sales receipts, or online sale printouts. The probate court will review these records when approving the inventory. Under-valuing assets can trigger creditor challenges, disputes among beneficiaries, or tax issues with the Delaware Division of Revenue.
Helpful Hints
- Begin early: Collect receipts, photographs, and sale data immediately after death to avoid rushed valuations.
- Use reliable sources: Leverage recognized auction databases and trusted appraisal networks.
- Maintain clear records: Keep written reports, signed appraisal forms, and comparative sales evidence in one file.
- Fix the valuation date: Always use the decedent’s date of death for FMV calculations.
- Seek expert guidance: When in doubt, hire a Delaware-licensed appraiser or consult a probate attorney to ensure compliance.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For guidance on your specific situation, consult a licensed attorney in Delaware.