Detailed Answer
In a New Hampshire probate case, the personal representative must determine the fair market value (FMV) of a decedent’s personal property as of the date of death or another date set by the court. Under RSA 556:1 (Appraisal), the probate court appoints one or more qualified appraisers to evaluate items such as furniture, jewelry, artwork, vehicles, and collectibles.
Fair market value is defined as the price a willing buyer would pay a willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell. To calculate FMV, follow these steps:
- Select the valuation date. By default, it is the date of death, but the court may allow a different date under RSA 556:2 (Inventory and Appraisal).
- Hire one or more independent appraisers approved by the court. Appraisers may include certified personal property appraisers or specialists in specific item categories.
- Gather comparable sales data. Appraisers review recent sales of similar items at estate sales, auctions, consignment shops, or online marketplaces to establish value benchmarks.
- Adjust for condition, rarity, provenance, and geographic factors. For example, an antique in excellent condition with documented provenance may fetch a higher price than an identical item without history.
- Prepare a written appraisal report for each item or group of items. The report must list descriptions, measured values, sources of comparables, and the final FMV.
Once the appraisals are complete, the personal representative files an inventory and appraisal with the probate court under RSA 556:3 (Filing Inventory). The court reviews the values, and if any appear artificially high or low, it may require a supplemental appraisal or hearing. Accurate valuations help ensure proper estate administration, creditor payments, and tax reporting.
Disclaimer: This article provides general information under New Hampshire law and is not legal advice. Consult a licensed attorney or qualified probate professional for advice tailored to your situation.
Helpful Hints
- Obtain at least two appraisals for high-value items to compare and ensure accuracy.
- Document each item’s condition with clear photographs before appraisal.
- Use reputable sources: auction houses, certified appraisers, or recognized antique dealers.
- Keep detailed records of all communications and appraisal reports for the court file.
- Request court guidance early if you have unusual or hard-to-value property.