Disclaimer: This article provides general information about Vermont law and is not legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
Under Vermont law, the personal representative (also called executor or administrator) must file an inventory of the decedent’s assets within three months of appointment. That inventory must list each item of personal property along with its fair market value (FMV) as of the date of death. See 14 V.S.A. § 3091 (Vermont Statutes Online).
What Is Fair Market Value?
Fair market value is the price a willing, unrelated buyer would pay a willing, unrelated seller in an arm’s-length transaction, neither being under compulsion to buy or sell. This standard excludes forced-sale or liquidation discounts and replacement or reproduction costs.
How to Determine FMV in Practice
- Professional Appraisals: Hire a certified appraiser for high-value items (art, antiques, jewelry). Obtain a written report stating the basis for valuation.
- Comparable Sales: Research recent sales of similar items. Use auction results or online marketplaces to establish a market range.
- Published Guides: For vehicles or equipment, consult industry guides (e.g., Kelley Blue Book for cars).
- Receipts and Records: Review purchase receipts, repair invoices, or insurance appraisals dated near the date of death.
- Sworn Statements: If no appraisal is practical, the personal representative can file a sworn statement attesting to the estimated FMV and describing the method used.
When a Court-Appointed Appraiser Is Required
If the personal representative cannot agree on values with beneficiaries or the value of an item exceeds $5,000, the probate court may order a formal appraisement by court-appointed appraisers. See 14 V.S.A. § 3093 (Vermont Statutes Online).
Helpful Hints
- Start your inventory early. Gathering appraisals and sales data takes time.
- Photograph items and keep detailed descriptions, including brand, model, age, and condition.
- Get multiple appraisals for expensive items to support the value you report.
- Document your valuation method in writing to address beneficiary questions and court reviews.
- Keep appraisal reports and sales data organized in your probate file for easy reference.