Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Ohio probate proceedings, the fiduciary (executor or administrator) must inventory and appraise all personal property at its fair market value as of the decedent’s date of death. Ohio Revised Code § 2115.02 requires the fiduciary to file an inventory and appraisement with the probate court within six months of appointment. Under this statute, fair market value means the price a willing buyer would pay and a willing seller would accept under no compulsion to buy or sell.
Key steps to calculate fair market value:
- Identify all personal property. Include tangible assets (furniture, jewelry, vehicles, collectibles) and intangible items (stocks, bonds).
- Select qualified appraisers. The fiduciary may engage one or more disinterested, experienced appraisers. Personal or related-party appraisers can skew values and may prompt court review. Ohio Revised Code § 2115.02: ORC 2115.02.
- Choose the valuation date. Typically, courts use the date of death. If market conditions change significantly within six months, the fiduciary may petition the court for an alternative valuation date.
- Determine value using multiple approaches. Common methods:
• Comparative Sales: Review recent sales of similar items in the local market or online platforms.
• Professional Appraisals: Obtain written reports for high-value assets (art, antiques, jewelry).
• Auction Results: Use realized auction prices if available within a reasonable timeframe. - Document and file the inventory. The fiduciary compiles the appraised values in the probate inventory form provided by the Ohio probate court. Ohio Revised Code § 2115.04 outlines inventory filing requirements: ORC 2115.04.
The probate court reviews the inventory for completeness and reasonableness. If the court finds the values suspect, it may order supplementary appraisals or adjustments. Accurate, well-documented appraisals help avoid delays and potential personal liability for the fiduciary.
Helpful Hints
- Start early: Begin gathering documentation and appraisals soon after appointment to meet the six-month deadline.
- Use multiple comparables: Cross-reference online marketplaces, estate sales, and dealer quotes.
- Keep detailed records: Maintain appraiser contracts, photographs, and written appraisals for court review.
- Watch for conflicts: Avoid using family or close associates as appraisers to ensure an unbiased valuation.
- Request extensions: If more time is needed, file a motion with the probate court before the six-month deadline.