There are several reasons to do an appraisal!
Probate appraisals are written when required by Probate Court or the executors or attorneys for the estate. These appraisals are written on the basis of a willing buyer, willing seller formula reflecting a conservative estimate of what a knowledgeable buyer would pay a knowledgeable seller, if the items were offered for sale, to establish value for tax purposes. These appraisals also offer comparative values for the distribution of property among heirs.
INSURANCE AND REPLACEMENT APPRAISALS
Most homeowner’s insurance policies provide coverage for normal household furnishings, but many underwriters require professional replacement value appraisals for antiques, fine art and silver of significant value. The replacement values used for insurance appraisals provide and estimate of the total cost of replacing property that is lost to theft, fire or flood. We recommend the addition of an archive of digital images to speed the identification of recovered theft property and provide additional information in creating an accurate inventory.
Appraisals can be written for the fair division of property within a family or among heirs and beneficiaries. Probate willing buyer appraisals are often used for this purpose. In the cases of divorce the appraisals can be written on the basis of replacement, fair market value, willing buyer or liquidation values as determined by legal counsel.
Appraisals written for the charitable donation of property must be written on the basis of a realistic fair market value as required by the regulations of the Internal Revenue Service and must conform to the Uniform Standards of Professional Appraisal Practice and may require special tax forms as determined by your tax preparer.