Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under Pennsylvania law, a personal representative must report the fair market value (FMV) of personal property in a probate estate as of the decedent’s date of death. FMV equals the price a willing buyer would pay a willing seller in an arm’s-length transaction. The valuation process involves three main steps: inventory, appraisement, and documentation.
1. Inventory: Within three months after letters testamentary or of administration issue, the personal representative must file a complete inventory listing all personal property. See 20 Pa.C.S. § 3131. Include tangible assets (jewelry, vehicles, furniture) and intangible assets (bank accounts, stocks).
2. Appraisement: Under 20 Pa.C.S. § 3132, the representative must appraise each item. For high-value or unique goods, hire a certified appraiser who issues a written appraisal. For publicly traded securities, use the official closing price on the date of death. For bank accounts and cash, rely on account statements dated on or immediately before death.
3. Documentation and Filing: Attach all appraisals, market quotations, and bank statements to the inventory. Submit the inventory to the Register of Wills for review and court approval. Accurate documentation minimizes challenges and ensures correct inheritance tax calculations under Pennsylvania law.
If any valuation is unclear, obtain more than one appraisal or use recent sales data for comparable items. Maintaining thorough records protects the estate against disputes.
Helpful Hints
- Begin the inventory process immediately to comply with the three-month deadline.
- Photograph small but valuable items (coins, jewelry) and note serial or VIN numbers.
- Secure at least two independent appraisals for antiques, art, or collectibles.
- Keep digital and paper copies of all appraisals, statements, and invoices.
- Consider consulting a probate attorney for complex estates or disputes over value.