There is an old saying that goes: What is the best way to eat an elephant? One bite at a time!

Personal property is elephant from a farm It is the responsibility that can take up the most time and provides the farm with the least amount of money for the effort involved. But dealing with personal property cannot be avoided. The property must be inventoried, appraised, distributed or sold. Let’s start our analysis by looking at what property we have (inventory); then we will determine what it is worth (valuation). In a future post we will determine what to do with it (distribution/sale).

When you go to court, the clerk will give you the form to complete for the inventory. The form will ask you to provide general categories and a value for each category you have listed. For example, you would include: furniture, $1,500; office equipment, $300, etc. You will not have to list items separately, such as sofa, $100; meat, $5; typewriter, $25. However, I suggest that you keep a list of the individual items. Although you won’t have to go into much detail for the court, you will probably want a more detailed inventory for yourself. You’ll want this for two reasons: to track the sale of real estate and to protect against claims from heirs and/or creditors.

You don’t have to get really fancy with inventory; pencil and paper will do. If you so desire, home inventory record books are available at office supply stores, or you can purchase software online. There are also companies that specialize in bringing inventories home.

You will need a helper. One person sorts and counts while the other writes. Start inside the house and work your way from the top of the house to the bottom. Go from room to room in a consistent pattern so you don’t miss a thing: always clockwise or counterclockwise around the room. Also write down what is on the walls, not just what is on the floor. For small items, write identifiable groups of items such as 200 hardbacks, 100 paperbacks, 42 knick-knacks, etc. On your list, put a star next to any item you think might be valuable. If the ornaments are porcelain and the books are first editions, they are valuable items. When you’re done, follow the same procedure for the outbuildings: the garage, the shed, the workshop, or whatever. If there is a rented self-storage unit, vacation home, RV, or boat, they will also need to be inventoried.

When you file the inventory with the court, you must indicate the value of the personal property. For run-of-the-mill household items, a good resource for determining value is the software program. is deductible that comes included with the Turbo Tax income tax program. is deductible it can also be purchased separately. The software lists the thrift store value for most household items and is easy to use.

For items you have identified as valuable, is deductible will not work. There are several ways to determine the value of individual items or collections. A good place to start is eBay (http://www.ebay.com). To use eBay to help set your values, you will need to be a registered user. Registering with eBay is free; just follow the instructions when you get to the website. Once registered, type the item you’re looking for and eBay will search for the item. When the search results appear, scroll down and look on the left side of the page where it says Search Options, click Full Listings, then scroll down and click Show Items. Search results displayed will be for completed auctions, not ongoing auctions. The prices that appear in green are items that were actually sold; prices in red are for items that were not sold. If you find your item listed and the price is green, it’s a good value. Compare the item details you found on eBay with the item details you own. Use the closest match as your value.

If you can’t find your item on eBay, it’s time to head to the library or bookstore. There you will find a variety of price guides for all types of antique gold collectibles. You will also find blue books for cars and equipment.

If you have a lot of items and no time to research, then it’s time to call an expert. In your local phone book you will find jewelers, antique dealers, auctioneers, appraisers and other professionals who will tell you the value of the property. What they will offer you is an opinion of value, not an appraisal. An appraisal is based on actual sales data, not opinion. I’ll cover appraisals below; for now, just keep in mind that there is a difference. For probate valuation purposes, the value placed must be the fair market value at the time of the decedent’s death. This is the value that you should ask your expert to provide you.

In my home state of Virginia, individual items or collections that are worth more than $500 must undergo an appraisal. Personal property appraisers are not licensed like real estate appraisers, but the content of their reports is regulated. In order for a personal property appraisal to be valid and accepted for tax purposes, it must be performed by a qualified expert and follow federal guidelines for the Uniform Professional Appraisal Practice Rules. Most real estate appraisers do not appraise personal property. You can find a personal property appraiser online by checking the websites of the Certified Appraisers Guild of America, the National Association of Auctioneers, or the American Society of Appraisers.

Estate executors will find the inventory and valuation of personal estate assets their most time consuming task, but there are resources available to help.