24 Mar Estate Appraisal Service
When is it needed?
If you’ve not yet served as an executor to a will you may be curious why estate appraisals are needed. There are two main reasons.
- Division of assets
Often my clients are guided to me by their estate lawyer who requests appraisal documentation for the above two reasons in order to settle the estate. You may be wondering if existing appraisal documents can be used and the answer is no. Estate appraisals must be completed using a fair market valuation that is calculated based on the date of death. Insurance value is only relevant if you are obtaining insurance. It is important to seek appraisal service with someone like myself who is experienced in providing estate reports, as there is a specific format that should be followed. The appraisals should be addressed to the estate and be accompanied by a formal cover letter for your lawyer.
What is fair market value? How is it different?
As defined by Wikipedia https://en.wikipedia.org/wiki/Fair_market_value The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
My valuation is completed from the perspective that the items are not being replaced. I am estimating the current value on the open market for similar items based on design, current condition, and desirability. In some cases market research is necessary.
How does estate appraisal service work?
Initial sorting consult
During the initial sorting consult we separate all costume jewellery versus fine jewellery. We determine the number of items that will require appraisals (based on lawyer specifications). I will quote the fee. Fee depends on number of items and complication of those items. A package rate is created for the estate once the work is determined. An itemized receipt will be issued to the executor to submit through the estate. If there are more than two family members that wish to be present for the sorting consult our office has a boardroom that can be reserved for an additional fee so that the family is comfortable.
Set up an appointment schedule
For larger estates we will often need multiple appointments. The appointments are structured so that one or two people can be present while the examinations of the items and necessary tests are being completed. The jewellery remains with you. Our lab provides a comfortable environment with coffee, tea, plush sitting chairs, and reading materials. The paperwork itself is produced 3 to 5 business days following the last appointment.
If you have a question regarding estate appraisal services please email or call the lab. I am here to answer all of your questions and help you through this difficult time.
Thank you for reading this blog post. I hope you found it helpful. See more from our blog at http://www.stjewelleryappraisal.com
Sherrie Anne Taylor