How to Value Personal Property in an Estate

Valuing personal property is one of the most contentious parts of estate administration. The dining table Mom bought for $3,000 in 1985 is worth $200 at resale — but it's 'priceless' to two siblings who both want it. Here's how to approach valuation methodically.

The Legal Standard: Fair Market Value

For estate purposes, personal property is valued at fair market value (FMV) — the price a willing buyer would pay a willing seller when neither is under pressure to act. This is almost always far less than what the deceased originally paid. Used furniture, clothing, household goods, and electronics typically have very low FMV.

Categories and Methods

• +Household goods and furniture: The IRS generally accepts a lump-sum estimate for ordinary household contents. For a typical household, $5,000–$15,000 covers everything unless there are antiques or collectibles. Thrift store and estate sale prices are good benchmarks.
• +Jewelry: Items over $500 should be professionally appraised. Use a certified gemologist or appraiser, not the store that sold it. Insurance appraisals run higher than FMV — ask specifically for FMV.
• +Art and antiques: Items valued over $5,000 require a qualified appraisal for tax purposes. Contact auction houses (Christie's, Heritage Auctions) for estimates on significant pieces.
• +Vehicles: Use Kelley Blue Book (kbb.com) or NADA Guides for FMV. Check the private party sale value, not the dealer retail value.
• +Collections (coins, stamps, guns, wine): Get a specialist appraiser. General appraisers often undervalue niche collections. For firearms, ensure the appraiser is familiar with relevant federal and state laws.
• +Electronics and technology: Almost always minimal value. Most used electronics are worth 10–20% of retail.

When You Need a Professional Appraisal

• +Any single item or collection worth more than $5,000 (required by IRS for estate tax deductions).
• +If the total estate may be subject to estate tax.
• +If beneficiaries are disputing the value of specific items.
• +Antiques, fine art, jewelry, and specialty collections.
• +If you plan to donate items and claim a tax deduction.

Handling Family Disputes Over Items

• +The round-robin method: Beneficiaries take turns choosing one item each until everything is distributed. Flip a coin or draw straws for who goes first.
• +The bid system: Each beneficiary submits sealed bids on items they want. The highest bidder gets the item, and the 'cost' is deducted from their share of the estate. This forces people to put a real value on sentimental claims.
• +Independent appraisal: If two people want the same item, get it appraised. One person gets the item; the other gets the appraised value from the estate.
• +Lot division: Divide items into lots of roughly equal value. Each beneficiary draws a lot number randomly.