Detailed Answer
When someone dies in Oklahoma, their personal property must be appraised to determine its fair market value for probate purposes. Fair market value represents the price at which property would exchange hands between a willing buyer and a willing seller, neither under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.
Legal Definition of Fair Market Value
Oklahoma law does not provide a precise statutory definition of “fair market value,” but courts adopt the standard definition found in valuation law. Fair market value is determined as of the date of the decedent’s death and accounts for condition, location, and any factors that would affect sale price.
Statutory Appraisal Requirements
Under 58 O.S. § 285, an executor or administrator must file an inventory and appraisal of the estate’s property with the district court:
- Inventory must list all personal property owned by the decedent.
- Appraisal must state the fair market value of each item at death.
- Appraisal must be made by one or more disinterested appraisers or by affidavit if the estate’s value is below statutory thresholds.
See 58 Okla. Stat. § 285 (Inventory and Appraisal Requirements).
Practical Steps to Determine Value
Executors commonly follow these steps:
- Hire a qualified appraiser with experience in antiques, vehicles, jewelry or other relevant categories.
- Collect documentation: recent sales of similar items, receipts, auction records or dealer price lists.
- Note any damage or wear that reduces value compared to list or catalog price.
- Adjust for local market conditions (urban vs. rural demand may affect prices).
- Prepare a written appraisal report, signed under oath, for the court record.
What If No Appraisal Is Filed?
Failure to file a proper inventory and appraisal can delay administration, incur court sanctions, or expose the executor to personal liability for under-valuing assets.
Helpful Hints
- Start the appraisal process early to avoid probate delays.
- Use multiple appraisers for high-value or unusual items.
- Retain all appraisal documentation and communications.
- Check for statutory exemptions that may modify appraisal requirements for small estates.
- Consult the local county clerk’s probate rules for filing deadlines and fees.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a licensed Oklahoma attorney.