Detailed answer — what you must do and why

When you administer an estate in New Mexico, the court and heirs typically need an inventory showing all estate assets and their values as of the decedent’s date of death. Vehicles owned by the decedent are estate assets if titled in the decedent’s name (or if ownership otherwise passes to the estate). Proving the fair market value of a vehicle helps the personal representative (executor/administrator) meet court filing requirements, calculate estate taxes (if any), determine heir distribution, and resolve creditor claims.

1. Identify whether the vehicle is part of probate

• If the vehicle was titled solely in the decedent’s name, it is usually a probate asset.
• If the vehicle was jointly titled with rights of survivorship, or was owned by a living trust, it may pass outside probate.
• If a lien or loan exists, the secured creditor has a claim; list the lien and contact the lender for payoff information.

2. Use the correct valuation date

Value the vehicle as of the decedent’s date of death (not the current date). That is the standard used in probate to determine estate value.

3. Gather primary documentation

Collect every document that supports the vehicle’s condition and ownership. Helpful items include:

• Title showing owner (and lienholder)
• Registration
• Copies of purchase receipts, recent appraisals, or the original bill of sale
• Insurance declarations
• Maintenance and repair records
• Photographs (interior and exterior), odometer reading, and VIN
• Correspondence with dealers, mechanics, or appraisers

4. Choose one or more accepted valuation methods

Courts expect a reasonable method for determining fair market value. Common approaches:

• Professional appraisal: A written appraisal from a qualified auto appraiser or dealership is the strongest proof. For classic, collector, or custom vehicles, use a specialist appraiser.
• National valuation guides: Use credible published guides such as NADA Guides or Kelley Blue Book. Record the specific guide, the vehicle configuration (make, model, year, mileage, options), and the date or archive value corresponding to the date of death.
• Dealer trade-in / retail quotes: Obtain written trade-in or buy/sell quotes from local dealers dated close to the date of death if possible.
• Comparable sales: Document sales of similar vehicles in the local market (ads, online listings) dated near the valuation date. Adjust for mileage, condition, and options.

5. Draft the inventory and provide supporting evidence to the court

The personal representative must prepare an estate inventory listing each vehicle with description and stated value. Best practice:

• List year, make, model, VIN, mileage, registration state, and lienholder (if any).
• State the valuation method used and attach supporting documents (appraisal, printouts of valuation guide pages, dealer quotes, photos).
• File the inventory with the probate court per the court’s rules and local forms.

6. What to do if heirs or creditors dispute value

If someone objects to the listed value, the court can require additional proof. To reduce disputes:

• Obtain at least one independent written appraisal.
• Keep contemporaneous documentation and clearly explain any condition issues (e.g., accident damage, flood damage).
• Be prepared to present testimony from an appraiser or dealer at a hearing if necessary.

7. Special situations

• Classic or modified cars: Use a classic car appraiser or specialty valuation guide.
• Damaged or totaled vehicles: Deduct estimated repair costs or submit an insurance/repair estimate. Also document salvage value.
• Small estates: If the estate qualifies for a simplified or small estate procedure, local rules may allow using a simple affidavit and a reasonable valuation rather than a full inventory. Check the court’s small-claims or small-estate rules.

8. Where to find New Mexico probate rules and forms

Refer to New Mexico Courts for local probate procedures and forms, and to the New Mexico statutes on probate administration for legal requirements. For assistance and official information, see the New Mexico Judicial Branch probate self-help pages: https://www.nmcourts.gov. For statute text and legislative resources, visit the New Mexico Legislature website: https://www.nmlegis.gov.

Helpful Hints

• Value vehicles as of the date of death, not today’s price. When using online guides, use archived values if available.
• Get a written appraisal for any vehicle worth several thousand dollars, classic cars, or when family members disagree.
• Keep the appraisal and all supporting documents together and attach them to the probate inventory you file with the court.
• If a lien exists, list the lienholder and obtain a payoff statement dated near the valuation date.
• Take clear photos showing overall condition, odometer, and VIN; these often prevent later disputes.
• Contact several local dealers for trade-in/retail comparisons—document the vehicle configuration you ask them to value (mileage, condition, options).
• When in doubt, consult the probate clerk’s office at the county district court handling the estate for filing requirements and deadlines.
• Consider hiring a probate attorney if the estate is complex, there are significant assets, or family disputes arise.