Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in South Dakota for guidance on your specific situation.
Detailed Answer
In South Dakota probate, the personal representative (PR) must report the fair market value (FMV) of all personal property as of the decedent’s date of death. FMV is defined as the price a willing buyer would pay a willing seller, both having reasonable knowledge of relevant facts and neither under any compulsion to buy or sell.
Key steps under South Dakota law include:
- Inventory and Appraisal Requirement: Within three months of appointment, the PR must file an inventory including an appraisal of all estate assets. See SDCL 29A-3-1001.
- Appointment of Appraisers: The court appoints at least two disinterested appraisers. Those appraisers must take an oath and return their written appraisals with the inventory. See SDCL 29A-3-1002.
- Date of Valuation: All appraisals must reflect values as of the date of death. Values cannot be adjusted for market fluctuations after that date.
- Evidence of Value: Appraisers use comparable sales, auction records, dealer quotes, and condition reports. Unique items—antiques, artwork, jewelry—often require a specialized appraisal.
- Court Review: The court may reject or adjust appraisals if it finds values unreasonable. In disputes, parties may submit expert testimony or additional appraisals.
Accurate FMV reporting ensures proper creditor payments, tax calculations, and equitable distribution to beneficiaries under SDCL Title 29A (Uniform Probate Code).
Helpful Hints
- Gather documentation early: receipts, bills of sale, photographs, and repair records help establish value.
- Obtain written appraisals for high-value items such as artwork, antiques, collectibles, and jewelry.
- Use online marketplaces and recent auction results to find comparable sales.
- Keep appraiser reports organized and file the inventory on time to avoid court penalties.
- Be prepared to explain or defend values if beneficiaries or creditors dispute the appraisal.
- Consider consulting an estate attorney if you face valuation disputes or complex assets.