Settling an estate is often a stressful time in your life as you have to manage not only financial concerns but also the emotional aspect of losing a family member. One important aspect of dealing with an estate is any associated property that may be valuable or rare, such as art. When settling an estate, certified appraisals in NY can help you properly value unique possessions an estate may have and help ensure an estate is properly managed. There are several reasons MS Estate Appraisals is valuable and here are five reasons why.
Five Reasons To Have An Estate Appraised
1. Understanding The Value of The Estate
An appraisal can provide exact figures on what an estate is worth. Certain items can be hard to value, such as antiques, rare furniture, art, and other collectibles. Unless you have an interest in the topic yourself, an outside appraiser will be needed to provide specific figures on what an estate is truly worth.
2. Art Is a Common Estate Item
Many estates have art and other valuables, such as antiques, as a part of the wider estate. There are several reasons why this happens. Many collections are based on the simple interest or enjoyment of a hobby. You may have a relative who collected art from specific artists they enjoyed or enjoyed the creativity found in particular periods or styles. Some art collections are based on financial strategies. Sometimes you may combine an interest in art with portfolio diversification. You not only get to enjoy the art itself but also have a store of value. When dealing with something as diverse as art with a wide range of values, an appraisal is essential to collecting proper and accurate figures.
3. Fair Market Value
Knowing the fair market value of an item is important for proper selling and division of an estate. Fair market value as defined by the Internal Revenue Service is the price an item would be sold at by a willing seller to a willing buyer without any outside compulsion and in a venue where such an item would normally be sold. Knowing fair market value allows you to properly divide an estate between the heirs named in the will and also ensure proper selling channels and prices for any art or antique that is going to be sold on the open market.
4. Your Relative May Not Have Known The True Value Of Their Collection
Not every collector knows the true value of the things they own. Many only know what they have, who made it, and in some cases where they acquired it. An appraisal can answer valuable questions that the original owner may not have asked. Some collectors don’t keep a detailed inventory of the things they own. Many collectors also buy art or antiques out of interest or emotional attachment with no regard for value, so they may not know what everything is worth. Also, collectibles can change in value over time, with some becoming rarer and more valuable, some staying at roughly the same price, and others decreasing in value. Without regular appraisals, the true value of a collection may be lost over time as the collection is built. An appraisal by an expert provides you with up-to-date figures and information.
5. Tax Purposes
When an estate is settled, some taxes have to be properly accounted for and paid. Calculating the proper figures for tax payment requires you to have a correct valuation of the estate. Items such as art, collectibles, furniture, and antiques should be appraised by a non-biased outside expert. This helps prevent later tax issues due to overvaluing or undervaluing an estate.
Final Thoughts
Managing an estate is an important responsibility and often a stressful event. Outside appraisals can help you through an important step in the process and provide vital information to ensure the estate is properly dealt with.
