Protected Asset Value

Once you have determined the client meets the criteria to protect assets, the protected asset limit, and the type of asset being protected, you must then determine the value of that protected asset.

Use the verified fair market value (FMV)

The fair market value is the price the asset would sell for on the open market within the local geographic area.

of an asset as the value of the protected asset. The value of the protected asset or assets is applied to the Protected Asset Limit.

FYI icon. Note: You must also verify the asset value at each annual renewal. Later in this course we’ll discuss what happens when that asset value increases, decreases, or the client no longer owns the asset.

For real property use the most recent property tax assessed value or an appraisal by a licensed appraiser to determine the FMV.

For life estates follow the steps in the EPM to determine the value of the client’s interest in the life estate.

For jointly owned assets be sure to only apply the value attributed to the client’s share of ownership.

Page 6

Initial Protection

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