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  1. #1
    Join Date
    Dec 2017
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    Default Valuation and Distribution of Non-Monetary Personal Assets in Probate

    My question involves estate proceedings in the state of: California.

    My father is deceased and I am currently designated as executor-to-be of my elderly mother's estate. She currently resides in California. Her will basically specifies that her estate is to be divided equally amongst her 3 children. All of her monetary assets are in pay-on-death accounts that will also divide the proceeds equally between her 3 children.

    The value of her estate for probate purposes is planned to be less than $150,000 in order to avoid probate. My understanding is that (in California) if the value of the estate is less than $150,000 probate is not required. So, essentially, her estate will consist entirely of tangible, non-monetary property. How will we value these tangible items for purposes of estate valuation in regard to probate?

    We are basically talking about her personal possessions which have no value of consequence. Since there will be no liquid assets in her estate how would any costs of administering the estate (funeral expenses, asset appraisal, etc.) be funded? Would it make sense to create a $15,000 non-pod account in her name only (that would then be part of the estate) to fund estate administration expenses? Could those funds be used in that manner before the estate is settled?

    How are tangible assets in an estate divided "equally", as stipulated in her will? Will we have to sell/monetize everything in order to determine the value of all assets in order to "distribute equally"? As executor, in order to avoid possible future disputes, will I need a formal, legal agreement as to who gets individual items?

    Part of her estate will consist of a large number (3 or 4 canvas bags full) of coins that my father accumulated in his travels. Any suggestions on how to "equally" divide these? I can see possibly appraising jewelry and the like but hundreds of coins that have been randomly accumulated over the years? Also, how should an estimate of their value be determined for purposes of estate valuation? If we cannot agree on how to distribute the tangible items in her estate, does that mean that we would have to go to probate?

    Since there will be no monetary assets how will court and legal costs be paid? Would the judge typically mandate each beneficiary to pay an equal share of the costs? And finally, how is the estate legally considered "settled"?

    TIA Luke

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Valuation and Distribution of Non-Monetary Personal Assets in Probate

    Quote Quoting luke_airig
    View Post
    My question involves estate proceedings in the state of: California.

    My father is deceased and I am currently designated as executor-to-be of my elderly mother's estate. She currently resides in California. Her will basically specifies that her estate is to be divided equally amongst her 3 children. All of her monetary assets are in pay-on-death accounts that will also divide the proceeds equally between her 3 children.

    The value of her estate for probate purposes is planned to be less than $150,000 in order to avoid probate. My understanding is that (in California) if the value of the estate is less than $150,000 probate is not required. So, essentially, her estate will consist entirely of tangible, non-monetary property. How will we value these tangible items for purposes of estate valuation in regard to probate?

    We are basically talking about her personal possessions which have no value of consequence. Since there will be no liquid assets in her estate how would any costs of administering the estate (funeral expenses, asset appraisal, etc.) be funded? Would it make sense to create a $15,000 non-pod account in her name only (that would then be part of the estate) to fund estate administration expenses? Could those funds be used in that manner before the estate is settled?

    How are tangible assets in an estate divided "equally", as stipulated in her will? Will we have to sell/monetize everything in order to determine the value of all assets in order to "distribute equally"? As executor, in order to avoid possible future disputes, will I need a formal, legal agreement as to who gets individual items?

    Part of her estate will consist of a large number (3 or 4 canvas bags full) of coins that my father accumulated in his travels. Any suggestions on how to "equally" divide these? I can see possibly appraising jewelry and the like but hundreds of coins that have been randomly accumulated over the years? Also, how should an estimate of their value be determined for purposes of estate valuation? If we cannot agree on how to distribute the tangible items in her estate, does that mean that we would have to go to probate?

    Since there will be no monetary assets how will court and legal costs be paid? Would the judge typically mandate each beneficiary to pay an equal share of the costs? And finally, how is the estate legally considered "settled"?

    TIA Luke
    If your mother is still living and able to make changes then yes, it would probably be a good idea to put 15k in a bank account that could be used for her final expenses. Otherwise, you would need to monetize enough of her personal assets to cover those final expenses.

    On the coins...we had that SAME problem when my father died. He had tons of coins that he had collected over the years and it took my mother months of going through the coins to figure out what might have any real value. Once she had separated the ones that had little to no value higher than face value she got an appraiser in to look at the rest of the coins. She ended up selling only a handful of the coins and then divided up all of the rest of them between the kids and told us they were OUR problem...LOL.

    I have my chunk stored on a high shelf and they get to be my daughter's problem when I am gone.

    As far as the rest of her personal possession are concerned, you just have to do something that is fair. If the siblings cannot agree on what is fair then about your only option would be an estate sale to monetize everything and then just divide that.

    I am the executor of my mother's will and I plan to do a "round robin". Everybody will get a separate color book of post it notes and we will draw straws to figure out the order of selection and then people will get to choose in order until there is nothing left that anybody wants, and then the rest will either be sold or donated.

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