What value do probate courts expect for machinery and equipment?
Good-faith fair market value as of the date of death: the price an unrelated buyer would pay in as-is condition. Court instructions expressly reject original cost and replacement cost, and the same fair market value standard flows through to any federal estate tax reporting for estates that must file.
When is an in-use or installed premise appropriate?
When the equipment operates inside a going business and market evidence supports including installation and setup costs, fair market value in continued use can be proper, sometimes reaching 100 to 120 percent of stand-alone value. Absent that support, an installed premium overstates the estate and creates audit risk, so the premise needs justification, not habit.
Which valuation shortcuts get executors in trouble?
Tax-depreciated book value, replacement cost, sentimental value, and liquidation standards all misstate a probate inventory. Orderly and forced liquidation values run roughly 75 to 90 and 50 to 70 percent of fair market value respectively and belong to lender and distress contexts, while book value reflects depreciation conventions rather than what the machine sells for.
How should each machine be identified in the inventory?
By manufacturer, model, serial number, year, location, hours or mileage, and condition, supported by comparable sales, price-guide data, or a cost-approach analysis. Courts give specific weight to that identification because it lets beneficiaries and clerks reconcile each valued asset to what was ultimately distributed or sold.