Determining Fair Market Value of Personal Property in Mississippi Probate
Disclaimer: This article does not provide legal advice. Consult an attorney for guidance on your specific situation.
Understanding Fair Market Value
Fair market value (FMV) equals the price at which personal property would sell between a willing buyer and a willing seller, both possessing reasonable knowledge of relevant facts and neither under compulsion. Probate courts use FMV as of the decedent’s date of death to value personal property in an estate.
Statutory Requirements Under Mississippi Law
Mississippi law requires the personal representative to inventory and appraise estate assets:
- Inventory Filing – The representative must file an inventory within 90 days of appointment. See Miss. Code Ann. § 91-7-201.
- Appraisal – The representative must have all real and personal property appraised. See Miss. Code Ann. § 91-7-213.
Calculating FMV of Personal Property
Follow these steps to calculate FMV:
- Select disinterested appraisers with relevant valuation experience.
- Gather comparable sales data from auctions, online marketplaces, or dealer listings.
- Adjust for condition, age, and uniqueness of each item.
- Document your methodology with receipts, photographs and market data.
- Include the appraised value in the formal inventory submitted to the court.
When to Hire a Professional Appraiser
For high-value or specialized items—such as antiques, fine art, or jewelry—hire a licensed appraiser who follows the Uniform Standards of Professional Appraisal Practice (USPAP). Courts accept USPAP-compliant reports.
Adjusting FMV to the Date of Death
Appraisers must value items based on market conditions as of the decedent’s death. Use historical sales data and period market reports when necessary.
Managing Objections
Beneficiaries may contest valuations. Reduce disputes by:
- Using qualified, documented appraisers.
- Maintaining transparent records of all valuation steps.
- Filing appraisal reports promptly for court review.
Conclusion
Accurate FMV determination under Mississippi law hinges on statutory compliance, thorough appraisals, and clear records. Following these steps helps ensure a smooth probate process.
Helpful Hints
- Begin inventory and appraisal immediately after appointment.
- Keep organized copies of appraisals and supporting documents.
- Use multiple sales sources to verify FMV.
- Consult professional appraisers for complex or high-value property.
- Review all deadlines in Miss. Code Ann. Title 91, Chapter 7.