Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Detailed Answer: Calculating Fair Market Value in a Florida Probate Case
Under Florida law, fair market value (FMV) is the price a willing buyer would pay a willing seller in an arms-length transaction on the date of death. In a probate proceeding, the personal representative must determine FMV for all personal property to prepare the official inventory and appraisal.
Florida Statute §732.507 mandates the following process: the personal representative must file an inventory and appraisal within 60 days after qualifying. For personal property, the representative must obtain a written appraisal from at least three disinterested persons. Each appraiser must be competent to value the specific type of property (e.g., antiques, jewelry, vehicles, household goods).
Key steps:
- Identify all personal property. This includes tangible items (furniture, vehicles, artwork) and certain tangible intangibles (collectible coins, stamps).
- Select appraisers. Choose three individuals who have no financial interest in the estate and possess expertise in valuing the relevant property category.
- Collect written appraisals. Each appraiser signs a statement declaring their appraisal is an honest opinion of FMV as of the date of the decedent’s death.
- Compile the inventory report. List each item, its description, and the average of the three appraised values. Round to the nearest dollar.
- File with the court. Submit the inventory and appraisal to the clerk of court within the 60-day deadline to comply with Florida Statute §732.507.
The court and interested parties rely on these appraisals to determine estate taxes, creditor claims, and distributions. If substantial doubt arises about an appraisal, the court may order a reevaluation or require additional documentation.
Relevant statute link: Florida Statutes §732.507.
Helpful Hints
- Start early: Engage appraisers as soon as you qualify as personal representative to avoid missing the 60-day deadline.
- Use specialized appraisers: Hire experts for unique items (e.g., firearms, art, jewelry) to ensure accurate FMV.
- Document communications: Keep copies of appraisal reports, emails, and engagement letters to support your inventory.
- Avoid conflicts: Confirm appraisers have no financial interest in the estate to meet statutory requirements.
- Review IRS guidelines: For estates subject to federal estate tax, IRS Publication 561 provides additional valuation guidance.