Blog Post
How Do You Value Assets?
7/20/2025
Valuing estate assets accurately leads to a successful probate process. Personal representatives have several methods at their disposal for this task. Understanding these strategies helps ensure proper distribution among heirs.
Understanding Market & Appraised Value
First, it’s necessary to distinguish between market value and appraised value. Market value reflects what buyers pay for an asset at a given time. Personal representatives can use recent comparable property sales or items to gauge market conditions and demand.
On the other hand, the appraised value is determined by a professional appraiser. This value is often necessary for more complex assets or real estate. Professional appraisals lend credibility to the inventory, mainly if disputes arise among heirs.
Conducting Market Research
Executors and administrators should conduct thorough market research to support their appraisals. It can involve checking online resources such as real estate listings, auction results, and sales data. Local probate attorneys can also guide them in finding reliable sources.
For real estate, it’s advisable to review comparable sales in the neighborhood. Additionally, personal property can be assessed by examining auction results or classified ads. Gathering this information will help establish a proper market value for the assets.
Documenting Asset Values
Keeping accurate records of each asset’s value is vital. Personal representatives should maintain all supporting documents, including receipts, appraisals, and photographs. This documentation sustains the inventory’s values. They can present a strong case in court by staying organized and systematic.
All these steps are necessary for the accurate valuation of assets. Each is necessary for a smooth distribution process. When executors and administrators take the time to value assets correctly, they reduce the likelihood of disputes among heirs.
San Diego Probate Attorneys
San Diego, CA 92101