Legal Definitions - just value

Just value refers to the fair market value of an asset or property. It represents the price at which an asset would likely change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of all relevant facts. This concept is fundamental in various legal and financial contexts, ensuring that valuations are equitable and reflect current market conditions rather than arbitrary figures.

Here are some examples illustrating the application of "just value":

• Property Tax Assessment: A local government assesses property taxes based on the "just value" of real estate. For instance, if a homeowner believes their property tax bill is too high, they might argue that the county's assessed "just value" for their house is inflated. They would present evidence, such as recent sales of comparable homes in the area, to demonstrate what a willing buyer would realistically pay for their property under normal market conditions, thereby establishing a more accurate "just value."

• Estate Valuation: When an individual passes away, their estate often includes various assets, such as a collection of vintage comic books or a portfolio of stocks. For probate purposes and to determine inheritance taxes, these assets must be valued at their "just value" as of the date of death. An appraiser might be hired to determine the market price a willing buyer would pay for the comic book collection, considering its condition, rarity, and current collector demand, ensuring a fair and accurate valuation for the estate.

• Insurance Claim for Damaged Goods: If a small business's inventory of specialized machinery is destroyed in a fire, the insurance company will need to determine the "just value" of the lost equipment to compensate the business. They would assess what a similar piece of machinery, in comparable condition and age, would sell for on the open market between a knowledgeable buyer and seller, rather than simply using the original purchase price or replacement cost, to arrive at a fair settlement.