Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.
Detailed Answer
1. Understanding Fair Market Value (FMV)
Under Nevada law, fair market value (FMV) means the price at which personal property would change hands between a willing buyer and a willing seller, neither under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. Although Nevada Revised Statutes (NRS) do not define FMV in a separate section, NRS 134.090 requires the personal representative to list each item of personal property in an inventory and state its FMV.
2. Statutory Requirements for Inventories
Per NRS 134.090, within 4 months after appointment, the personal representative must file with the court an inventory of all estate property, including:
- Description of each item or class of personal property.
- FMV of each item or class, as of the decedent’s date of death.
See full text: NRS 134.090.
3. Steps to Calculate FMV
- Gather Comparable Sales: Research recent sales of similar items in your region (auctions, estate sales, online marketplaces).
- Obtain Professional Appraisals: Hire a certified appraiser for unique or high-value items (antiques, jewelry, artwork). Their written report supports FMV at date of death.
- Use Published Pricing Guides: Consult trade publications or valuation databases (used-car guides for vehicles, collector guides for coins, etc.).
- Consider Condition: Adjust the base value for wear, damage, or restoration needs.
- Document Your Methodology: Keep records of comparables, appraisal reports, and guide listings to back up each valuation.
4. Filing the Inventory
After assigning FMVs, the personal representative signs the inventory under oath and files it with the probate clerk. The court uses these values to calculate estate taxes, creditor notices, and distributions.
Statutory References
- NRS 134.090 – Inventory of estate property
- NRS Chapter 134 – Probate procedure
Helpful Hints
- Start the valuation process early to avoid filing delays.
- Keep photos of items to corroborate condition.
- Get multiple appraisals for high-value or unusual items.
- Retain all receipts, reports, and research in one organized file.
- Review IRS guidelines on FMV for estates exceeding federal thresholds.