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As an avid collector and wearer of vintage couture, I’ve personally experienced firsthand the magnetism of these timeless treasures—and as an appraiser, I’ve seen how important it is to accurately understand their value for estatetax, insurance coverage, and equitable distribution.
Value matters and an art appraisal completed by a qualified art appraiser can save you substantial money by not selling too low, insuring too low, or paying too much in estatetax or equitable distribution. Insurance Purposes: Artwork can be a valuable asset, and it is essential to ensure that it is adequately insured.
The appraisal report is a crucial document used for various purposes, such as insurance, taxation, sale, or donation, and is often required to be conducted by a certified appraiser to ensure its credibility. Insurance, Damage and Loss Appraisals Insurance appraisals establish the value of artwork for insurance purposes.
An appraised value for insurance may be significantly higher than an appraised value for planned future sale, which can be baffling and difficult to comprehend without a familiarity with the different levels of the market. It can sometimes be present in insurance policies, although in my experience it is much less frequently encountered.
It may be the risk of selling too low, or of paying too much; the risk of being under or over-insured; the risk of not getting your fair share in a division of property; the risk of incurring tax penalties or being audited when claiming a deduction for a charitable contribution or when calculating estatetaxes.
If you are going to insure your jewelry you must have one. Knowing how much your items are worth will help prevent you from under-insuring or over-insuring your pieces. Insurance companies will only value an appraisal from an authority that is impartial, such as a certified jewelry appraiser.
Policies vary from insurance company to insurance company, but generally, there are limitations to homeowners' or renters' insurance that are important to keep in mind if you happen to own items of exceptional value. You may find that additional insurance is necessary to adequately cover you in the case of loss.
Tweet By Thomas Dawson, ASA Spotlighting five key areas appraisers need to know to be covered in ASA ’ s upcoming PP163 Property Insurance Fundamentals webinar. In the property insurance industry, appraisers play a vital role, particularly when it comes to claims.
It is also important to watch for valuable items like stock certificates, deeds, titles, trusts, and life insurance policy documents. You may have to make a decision and sell your estate quickly—possibly due to estatetaxes, cash flow problems, or unpaid bills.
Further, sales of tangible assets will be subject to capital gains taxes at a rate of 28% , whereas items bequeathed directly to heirs will not trigger estatetaxes (unless they turn around and sell them). Collectors will inevitably need to have their tangible assets professionally appraised for both insurance and tax purposes.
Further, sales of tangible assets will be subject to capital gains taxes at a rate of 28% , whereas items bequeathed directly to heirs will not trigger estatetaxes (unless they turn around and sell them). Collectors will inevitably need to have their tangible assets professionally appraised for both insurance and tax purposes.
Appraisals can be done for the purpose of insurance, estate planning, and protection, or simply to gain a better understanding of the market value of the item. To insure your jewelry Having your jewelry appraised is essential if you plan to insure it. What exactly is Fair Market Value?
If your insurance provider has asked you to get your artwork professionally appraised, or you need it evaluated for some other reason, How Do I Get My Art Appraised will help you find a qualified appraiser, fully understand all aspects of the appraisal process, and prepare you for what a professional fine art appraisal is likely to cost.
However, in order to determine the fair market value of those assets and comply with your state’s inheritance and estatetax requirements, it is recommended that you obtain an appraisal from a qualified and accredited appraiser.
As an appraiser, my role is to provide an unbiased, well-researched valuation tailored to your specific needs, whether for insurance, estate planning, donation, or sale. Many insurance companies require a professional valuation to determine an appropriate coverage amount.
Understanding IRS Qualified Appraisals and Qualified Appraisers for Jewelry Valuation When dealing with tax-related matters such as charitable donations, estatetax filings, and gift tax reporting , an accurate and IRS-compliant jewelry appraisal is essential. Experience in valuing fine jewelry, watches, and gemstones.
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