Valuation of Assets
The personal representative is also responsible for the valuation of the assets for inventory purposes and possibly for estate tax purposes. Estates may be made up of a variety of assets. Examples include real estate, securities, cash, life insurance, and personal property. There are different methods employed for valuing the different types of assets. For example, securities are valued by determining their fair market value on the date of death. The fair market value is the mean between the highest and lowest selling prices quoted on the valuation date. If the decedent died on a date the securities market was closed (e.g., a weekend), valuation becomes more complex. Other assets, such as real estate or jewelry, may require an appraisal to determine their fair market value. Once all the assets have been valued, the personal representative must proceed to prepare an inventory of the estate assets to be filed with the probate court. This inventory must be accurate for several reasons, including providing the starting point for the preparation of required accountings for the estate.
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