Disclaimer: This article provides general information about Montana probate law and is not legal advice. Consult a licensed Montana attorney for advice specific to your situation.
Detailed Answer
1. Overview of Montana’s Probate Appraisal Requirement
Under Montana law, the personal representative (executor or administrator) must inventory and appraise all estate assets within 90 days of appointment. See Montana Code Annotated § 72-3-311 (https://leg.mt.gov/bills/mca/title_0720/chapter_0030/part_0030/index.html#72-3-311). Personal property must be reported at its fair market value (FMV) as of the date of the decedent’s death.
2. What Is Fair Market Value?
Fair market value represents the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion, both having reasonable knowledge of relevant facts. This is the standard measure for probate distributions, estate tax calculations, and creditor notices.
3. Steps to Calculate Fair Market Value
- Identify Each Item: Create a detailed list of personal property (furniture, jewelry, vehicles, collectibles).
- Source Comparables: Use recent sales from local auctions, estate sales, online marketplaces (e.g., eBay “Sold” listings).
- Obtain Professional Appraisals: For high-value or unique items, hire a licensed appraiser. See Montana Code Annotated § 37-9-101 et seq. for licensing requirements (https://leg.mt.gov/bills/mca/title_0370/chapter_0090/part_0010/index.html#37-9-101).
- Adjust for Condition: Reduce comparable sale prices if an item is worn or damaged. Document condition with photographs.
- Aggregate Values: Assign an FMV to each item and total them. Include this sum on the inventory filed with the probate court.
4. Filing the Inventory
Once FMV determinations are complete, file the inventory and appraisal form with the court clerk in the county where probate opened. Filing late or omitting values can delay distributions and invite creditor disputes.
Helpful Hints
- Begin the appraisal process immediately after appointment to meet the 90-day deadline.
- Keep all appraisal reports, receipts, and documentation of comparables in case of audit or dispute.
- Use multiple data sources—online sales, auction houses, dealers—to ensure accurate FMV.
- Consider condition, rarity, and local market demand when valuing each item.
- Retain photographs of each item to support condition assessments.
- Consult an estate attorney when estates include complex assets (business interests, art collections, mineral rights).
- Review Montana Code Annotated § 72-3-311 regularly for procedural updates.