If the trustee does not use this procedure and a creditor later appears, the trustee or trustees may be personally liable because they failed to follow the required procedure. It is necessary to value all assets in the trust as well as all assets which the decedent owned which were not in the trust as of the date of death. The value which is used is the fair market value as of the date of death. Stocks and bonds must be valued by taking the average between the high and the low as of the date of death. If the deceased died on a weekend or holiday, the average between the high and low for Friday and Monday must be re-averaged.
Mutual funds take the closing price on the date of death.
Other assets such as real property, partnerships, automobiles, and certain other assets need a written or appraised value by a competent appraiser such as a real estate agent or broker for real property. A valuation for all assets, in and out of the trust, should be obtained. This includes life insurance, IRA accounts, 401k plans, etc. Furniture and furnishings are not normally valued unless they have a high value. A federal estate tax return must be filed if the deceased's assets exceed a gross value of a certain amount.