Oftentimes, some property in a decedent’s estate will be unique and difficult to value, like: a business, artwork, jewelry, collectibles, or real estate. Oftentimes the value will be needed to help complete an inventory in a probate and/or to determine any estate tax impact on the estate. Additionally, objective appraisals can also help minimize or avoid disputes among beneficiaries, who may have differing opinions on the value of these unique assets.
Since a personal representative or trustee may not have the expertise or special knowledge to assess values to these assets, an appraiser can accomplish the task and be brought in to determine the fair market value of any unique property.
In Minnesota, the personal representative of an estate is permitted to employ qualified and disinterested appraisers. The appraiser’s fees may be paid out of the estate. If an appraiser is used, then the name and address must be included in any inventory submitted to the probate court.
Also keep in mind that there are other times when an appraiser may be used. For example, in Maggie Green’s post, Valuing a Gift, she explains when an appraiser may be necessary when preparing gift tax returns for significant gifts made during one’s lifetime.
For any assistance with handling these, seek an attorney in your area that handles estate administration.
