When seeking insurance coverage, insurance companies generally require documentation of the replacement value of the client’s collection. In view of the recent volatility of the art market, appraisals should be updated every three to five years to ensure that the valuation stays consistent with changing market conditions.
Damage and Loss Claims
These appraisals identify the value of the damaged or lost property to facilitate claim settlements and disputes.
Estate Planning and Taxation
These appraisals clarify questions of property value, distribution or de-accessioning of property, and assists financial planners, attorneys and related professionals in establishing a client’s net worth as a basis for estate planning. All appraisals for estate taxation must meet IRS standards and requirements.
The Internal Revenue Service requires a formal appraisal determining Fair Market Value if the claimed deduction for one or more like items of donated property is more than $5,000. All appraisals of charitable donations must meet IRS standards and requirements.
These appraisals clarify questions of property value and distribution of property, and assist attorneys and related professionals in establishing a client’s net worth as a basis for equitable division in cases of divorce, inheritance, bankruptcy or business liquidation.
Other Legal Purposes
Theft, Illegal Trade, and Fraud.