How are assets valued for probate?

When assets are transferred through the probate process in New Jersey, they must first be valued. The value of assets in a probate case includes the fair market value of the assets that were owned by the deceased person. Fair market value is defined as the amount of money that could have been reasonably expected if the asset had been sold on the open market on the date of the decedent’s death. The executor of the estate must obtain an appraisal from an objective third-party in order to determine the fair market value of the assets. This appraisal must detail the evaluation process and contain a report about the assets. The report must include the asset’s cost basis, income or other benefits it generates, and any potential liabilities associated with the asset. The value of assets in the probate setting can also include intangible assets, property improvements, accrued interest or dividends, and any contractual benefits. Intangible assets are those that have no physical form, such as securities, patents, copyrights, or other intellectual property. Property improvements include any changes or renovations made to the property since its original purchase. The probate court evaluates the executor’s appraisals in order to determine the assets’ value for transfer. The court may also appoint appraisers to independently evaluate the asset values. The court’s goal is to ensure that the assets are properly valued in order to distribute them according to the decedent’s wishes.

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How are assets valued for probate?

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