Why you need an art appraisal for estate planning

In January 2020, I got a call from clients who had recently lost their mother. One of the siblings lives in Canada and the other sibling lives in Colorado and they weren’t sure about the value of some of the artwork and how/if they sibling in Canada could take a piece over the border. I was able to identify the high value pieces for the estate and help my clients decide the best way to divide the valuables. On the way to a consignment store, one of the lamps in the estate broke and lost all its value. 
 
In this case it was not a high value object, but if it had been high value an insurance appraisal would have helped retain that value.
 
If you are undergoing the process of estate planning, your advisor will encourage you to have your art collection appraised in addition to your other assets. For the purposes of estate planning, there are really two subsequent appraisals that need to happen: The first is the insurance appraisal, which reveals the replacement value of any object. However, your estate will eventually need to be distributed, and so a second estate-distribution appraisal will be necessary to know the market value of your collections. But before we go too far down the path of estate planning, let’s take a closer look at that crucial first step and the many benefits of an insurance appraisal.
 
THE STORIES YOUR OBJECTS TELL
In addition to its contribution to your estate planning, the insurance appraisal itself has a tremendous amount of value. One of the great benefits is preserving the stories of objects. Having those histories recorded and documented officially with the piece will serve generations to come. Unfortunately, not all families can agree on ownership, let alone the historical significance, of their inherited collections. Going through the documentation process will also help further down the line if you need to find any specific information about any single piece of art. 
 
KNOWING BEFORE ITS TOO LATE
One of the most practical benefits of an insurance appraisal in and of itself is knowing the value of an object or the need for documentation before any damage happens. Of course, we don’t plan on damage happening, but an appraisal will help maintain the value of objects while you still have them and maintain that value for future owners.
 
PEACE OF MIND
Being prepared for the unexpected is primarily for your loved ones. You would like to ensure that the transfer of your estate goes smoothly, and stays outside of the court system. But it also helps your own peace of mind to know that you have your ducks in a row should anything happen. You may not want your legacy and your estate to be a burden on its recipients, but rather the gift you intend it to be.
 
FINDING THE RIGHT PEOPLE 
If you’ve found an estate planner that you trust to help you make a distribution plan for your estate, they should also be able to recommend an art appraiser. But if you’ve already made it this far, then I suggest you give us a call first, at 970.658.0468 or email us  [email protected]