Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In New York probate proceedings, the fair market value (FMV) of personal property reflects the price a willing buyer would pay a willing seller, both having reasonable knowledge of relevant facts and neither acting under compulsion. Unlike some jurisdictions, New York statutes do not prescribe a precise formula for FMV; instead, the fiduciary (executor or administrator) must determine value as of the decedent’s date of death.
Key steps include:
- Identify All Personal Property: List jewelry, art, collectibles, household goods, vehicles, and other tangible items. The fiduciary should undertake a comprehensive inventory under SCPA § 1803 (see SCPA 1803).
- Obtain Professional Appraisals: Hire qualified appraisers for high-value or specialized items (antiques, fine art, rare coins). Appraisals should be in writing, state the methodology used, and conclude with FMV as of the date of death.
- Use Comparable Market Data: For common items, review recent sales of similar goods via reputable auction houses, online marketplaces, or dealer price lists. Record sale price, condition, and date to support your valuation.
- Document Valuation Rationale: Keep detailed notes on how each figure was reached—appraisal reports, sales receipts, catalog values, or broker opinions. This transparency helps satisfy the Surrogate’s Court if the inventory is contested.
- File Inventory and Appraisal: Submit the inventory listing FMV figures to the Surrogate’s Court. The court reviews the inventory under SCPA § 1803 to ensure completeness and reasonableness.
If a dispute arises over a specific valuation, the court may appoint impartial appraisers or order additional evidence. Ultimately, surrounding market conditions, item condition, and expert input drive the final FMV determination.
Helpful Hints
- Start the valuation process early to secure appointment slots with qualified appraisers.
- Group similar items (e.g., books, kitchenware) and use bulk-sale comparables for efficiency.
- Keep photos of all items to support condition assessments.
- Use multiple data sources—auction records, dealer catalogs, online sales—for cross-verification.
- Retain all appraisal reports and receipts in case an interested party later questions the valuations.