Need an Estate Appraisal? Read This First.

Derik Lattig Cats
Need An Estate Appraisal? Read This First.

In the midst of planning for your estate? Don’t overlook hiring an appraiser, it’s important. 

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Hire an Estate Appraiser

Why Should I Get An Appraisal?

Appraisals are sometimes required by the IRS when it comes to privately held business interests, especially if they are going to be claimed on estate or gift tax returns. Keep in mind an appraisal provides you with some insurance against an IRS audit and acts as support in case of an audit.      

Are Appraisals Deductible?

Yes, costs of appraisals are deductible expenses on estate tax returns and sometimes in estate planning when it comes to family limited partnerships. An appraiser can assist an attorney in structuring an estate plan which will maximize the tax benefits for you by providing strictly a “value” point of view.

How Do I Determine What I Should Have Appraised?

An accredited appraiser can help figure out which of your pieces should receive a full report. The appraiser can also help identify and help catalog the rest of your collection. Appraisers most commonly look to past sales of similar items to determine the value of an item.

MORE: How appraisers determine value

Are All Appraisals Created Equal?

No. If you are getting an appraisal for insurance, the appraiser will price the object based on its replacement value, which is how much it may cost to replace the object. A valuation for insurance will be higher since the cost of replacing a specific object can be high and above the potential market value, when the item is unique. A donated object is looked at for tax purposes only and how much the object will sell for on the open market.    

How Do I Hire An Appraiser?  

First only hire accredited appraiser like one from the American Society of Appraisers who follow a code of ethics and Uniform Standards of Professional Appraisal Practice. It’s important to hire someone who has expertise and follows this code as the IRS recognizes this group. The other two groups are the  International Society of Appraisers and the Appraisers Association of America. Each requires similar, though somewhat different, education and experience criteria for membership. Most importantly, all three have a code of ethics members follow. Each organization provides an online database of its accredited appraisers.

 Will I Get The Price Named By The Appraiser?

Let’s take for example a Beatles album. The appraised value of this album may be different than what it sells for, either at auction or the open market. Collectors may pay more for this album at auction than the average person because they plan to add to their collection or resale. So, you may get less or more than the album was appraised.

How Can I Find An Appraiser Near Me

You can check out the American Society of Appraisers find an appraiser referral system  or look online for appraisers near you in Dallas.  Remember, An average appraisal of antique furniture, fine or decorative arts takes 30 minutes to two hours per item, depending on the amount of time required to establish a credible value. This includes the on-site inspection, identification research, market research and analysis, concluding on a value and writing the report.

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