Why get an appraisal?
There are as many reasons to get an appraisal as there are things that can be appraised! Many of these reasons fall under a few primary categories, which we refer to as the Four Ds of Appraisals:
Death: It’s true that the vast majority of heirs are exempt from paying estate taxes, You still may need an appraisal if you are involved in settling an estate. You should consult the attorney handling the estate to see if you actually need an appraisal, but even if you don’t have a legal requirement, an appraisal can be a useful tool in your efforts to liquidate and/or divide an estate up in the most responsible manner. Money is easy to divide, objects are not. Whether as part of an estate, or as part of your downsize, putting values on your possessions can help you or your heirs ensure that your family and other beneficiaries know that they are being treated fairly. |
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Divorce: As mentioned above, money is easy to divide, objects are not. But selling everything isn’t always the best course of action during a divorce, so having a qualified appraiser assign values on items helps ensure that both parties walk away knowing that their household was divided evenly.
Disaster: Whether you have a valuable item or collection that needs to be insured, or you are filing a claim for a lost or damaged item, your insurance company will require an appraisal. We're often asked if homeowner's contents insurance will cover damage to or loss of valuable possessions. Maybe, but not well. Because of depreciation rules and policy limits, in the event of a loss, your homeowners policy may only cover your antiques, art, collectibles, jewelry, and other items of value at a fraction of their true value. The best way to ensure you are fully protected is to have your valuables appraised and schedule them on your policy by submitting that appraisal to your agent. In many cases this will not increase your policy premium but it will make sure your objects are replaced at their true value if tragedy strikes.
Downsizing: Americans are living longer, and these days, retirees are often selling the family home and moving to smaller, more convenient quarters. This move often necessitates the dispersal of a significant portion of one’s personal property. Even if you don’t have antiques, you still may have objects of value. Having an appraisal (or at least a consultation) helps ensure you don’t accidentally sell an artistic masterpiece in a yard sale.
There are plenty of other reasons for getting an appraisal, including:
-Charitable gift: If you are donating an art or historical object to a museum, you are usually entitled to a tax deduction; the catch is, you need to have a formal appraisal to establish the value on which that deduction is based. In recent years, the IRS has been closely scrutinizing the deductions taken for such donations, so getting a qualified appraisal is a must!
-Establishing market value for sale: Should you decide to sell one item or an entire collection, the price you can realistically expect to receive has nothing to do with what you paid, nor what is listed on an appraisal from 1996. Having a current and independent opinion of value can help ensure that you receive a fair price in today’s market.
Disaster: Whether you have a valuable item or collection that needs to be insured, or you are filing a claim for a lost or damaged item, your insurance company will require an appraisal. We're often asked if homeowner's contents insurance will cover damage to or loss of valuable possessions. Maybe, but not well. Because of depreciation rules and policy limits, in the event of a loss, your homeowners policy may only cover your antiques, art, collectibles, jewelry, and other items of value at a fraction of their true value. The best way to ensure you are fully protected is to have your valuables appraised and schedule them on your policy by submitting that appraisal to your agent. In many cases this will not increase your policy premium but it will make sure your objects are replaced at their true value if tragedy strikes.
Downsizing: Americans are living longer, and these days, retirees are often selling the family home and moving to smaller, more convenient quarters. This move often necessitates the dispersal of a significant portion of one’s personal property. Even if you don’t have antiques, you still may have objects of value. Having an appraisal (or at least a consultation) helps ensure you don’t accidentally sell an artistic masterpiece in a yard sale.
There are plenty of other reasons for getting an appraisal, including:
-Charitable gift: If you are donating an art or historical object to a museum, you are usually entitled to a tax deduction; the catch is, you need to have a formal appraisal to establish the value on which that deduction is based. In recent years, the IRS has been closely scrutinizing the deductions taken for such donations, so getting a qualified appraisal is a must!
-Establishing market value for sale: Should you decide to sell one item or an entire collection, the price you can realistically expect to receive has nothing to do with what you paid, nor what is listed on an appraisal from 1996. Having a current and independent opinion of value can help ensure that you receive a fair price in today’s market.