Appraisals

We provide comprehensive, IRS-compliant appraisals for estate tax filing. The IRS has specific requirements of both the appraiser, and the reports submitted for review, that we are well-equipped to meet. Objects exceeding a fair market value (FMV) of $50,000 are automatically reviewed by industry-leaders on the IRS Art Advisory Panel, with whom we work closely.

Services

Items over $3,000 (FMV):

• Full cataloguing including artist/make, title, size, medium, age, and general condition along with any supporting details such as provenance, literary references and exhibition history
• Digital and hardbound copy of reports

Items over $20,000 (FMV):

• Comparable sales results and analysis
• Discussion of the current marketplace in relation to the types of objects in the estate

Items over $50,000 (FMV):

• Valuation narrative on the object and value in relation to the current market

Insurance appraisals reflect the full cost of replacing an object after loss or damage. A volatile art market and changing collector tastes highlight the need for up-to-date appraisals, and our detailed, illustrated appraisals are relied upon by insurance carriers and underwriters globally. A current appraisal can manage risk, lower insurance premiums and enable a swift, streamlined recovery process should damage or loss occur.

Services

• Individual cataloguing, photographs and values for each item identified as over a client-specified threshold
• Digital and hardbound copy of reports
• Comparable sales results and analysis
• Condition reports on items valued over $100,000 (RRV)
• Narrative for items over $250,000 (RRV) to discuss current market
• Complimentary yearly reviews for price fluctuations

Additional Services

Schedule reviews & appraisal reviews
We provide complimentary schedule and appraisal reviews for clients and their advisors, providing market feedback and potential changes in value.

Risk management strategy
We will organize virtual visits of a client’s home to discuss an appropriate risk management strategy – from natural disaster preparedness to general concerns regarding placement of objects.

For objects over $5,000 in value that are to be gifted to an institution or foundation, an appraisal for tax purposes will be needed.

What is a qualified IRS donation appraisal?
We can provide IRS-compliant donation appraisals, including the required 8283 tax form, as well as full cataloguing, high-resolution color images (with option for full page printing), illustrated comparables and full market analysis to justify the appraised value. The appraisal report also includes a narrative and details on the place of donation and object(s) being donated, to comply with IRS requirements.

Donations exceeding $50,000 are automatically reviewed by the IRS Art Advisory Panel. We work closely with the Panel and national appraisal organizations to ensure we exceed all requirements for a successful review process.

Services

• Fair market value (FMV)
• Full cataloguing including artist/make, title, size, medium, age, and general condition along with any supporting details such as provenance, literary references and exhibition history
• Discussion of the current marketplace in relation to the types of objects being donated
• Narrative discussing the context of the place of donation and the objects to be donated

What is related use?
According to the IRS tax code, in order for a donor of tangible personal property to take full advantage of a tax benefit, the charity must use the object in a manner that is related to its exempt purpose. For example, a painting donated to a university with an art museum and an educational program around the collection. Or a tall case clock created by a regional clock-maker, given to a historical society in that region.

Sources used to determine fair market value and to provide narrative specific to the donation:

• Auction market for assessment of current market for the particular artist and/or type of work being valued
• International auction house records, using several databases that search more than 12,000 sellers and 58 million global records
• Living artist and artist estates to confirm authenticity, editions, etc.
• International art fair reports
• Private collectors and advisors
• Over 75 contracted specialists familiar with global, national and regional market pricing
• Review of the donee’s collection and donation policies

Please email inquiries@fineartgroup.com for a downloadable list of the details needed in order to for us to prepare a donation appraisal.

Tangible assets, like fine art, furniture, decorative arts, coins, jewelry, textiles and rare cars are now widely recognized as an asset class in their own right. These items need to be managed as repositories of significant monetary value with proper collection management, and with the same care as financial assets are managed.

Part of estate planning should include a review of the values on existing appraisals and updating appraisals for new acquisitions. Based on fair market value (FMV), our appraisals for estates and planning take into consideration all aspects of the client’s portfolio and their long-term goals for the collection. Working with our clients, their families and their financial advisor, our appraisals are customized to continue the legacy of the family and collection.

Services

• Individual cataloguing, photographs and values for each item identified as over a client-specified threshold
• Digital and hardbound copy of reports
• Comparable sales results and analysis
• Condition reports on items valued over $100,000 (FMV)
• Organization by giftees and/or dates of gift
• Narrative for items over $50,000 (FMV) to discuss current market
• Complimentary yearly reviews for price fluctuations

Additional Services

• Collection care and management, including storage, exhibition, shipping and conservation
• Family organization – establishing items that should be kept within the family, items that can be donated, items that can be sold (either to benefit the family or a charitable organization)
• Determining a timeline for execution of collection

In the event of damage or total loss to personal property, the burden of proof is on the homeowner. We help ensure our clients are always on the offensive, providing inventories, video documentation and up-to-date appraisals for retail replacement.

Damage & Loss Appraisals include:

• Retail replacement value (RRV) before and after damage
• Condition analysis
• Conservator recommendations and quotes
• Diminution in value due to the damage and subsequent restoration
• In the case of a total loss, our in-house advisors will assist in replacing the object

Expert Testimony
Our appraisers are regularly called upon for expert testimony in cases ranging from divorce, damage and loss/insurance claims, collateral and family disputes. Should we be asked to testify, we will work with the client and their counsel under a separate contract and the client will be billed at an hourly rate for testimony, travel, deposition and/or counsel, including preparation time.

Risk Management Tools:
We help ensure clients are as prepared as possible in the event of damage and loss. We work with the client and their team to look at all aspects of risk to the personal property including creating personalized programs. From fire, hurricane and natural disaster preparedness to moving and storage plans, our dedicated appraisers and advisors will create a plan that helps mitigate loss and thus risk to personal property.

Accredited appraisal reports
The Fine Art Group’s appraisal reports are accepted and relied upon by insurance carriers and underwriters, globally. Reports strictly adhere to the rules and guidelines of the Uniform Standards of Professional Appraisal Practices (USPAP) set by the Appraisal Foundation.

We offer various virtual appraisal options to suit a range of comfort levels and budgets. Clients and advisors can securely send object documentation and details to our Appraisal Team via mail or direct upload. All objects and their corresponding photos, documents and details will be placed in our secure, proprietary collection management system and valued by our expert team. Additionally, we can work with any digital asset management system being used by the client.

For our appraisers to conduct a remote appraisal, our administrative team will need full cataloguing information and photographs – details of which can be downloaded here.

Upon completion, our team will provide a PDF and/or Excel report, as well as credentialed access to the collection on our web-based collection management system. All of our specialists are able to work remotely, and provided all the necessary information is received, most objects can be appraised virtually.

Additional Virtual Services

Schedule Reviews & Appraisal Reviews
Our team can provide complimentary schedule and appraisal reviews for clients and their advisors. We will review the items and provide feedback on the market and potential changes in value.

Risk management strategy
We will organize virtual visits of a client’s home to discuss an appropriate risk management strategy – from natural disaster preparedness to general concerns regarding placement of objects.

We have established a strong reputation for handling unique and complicated appraisal scenarios. Our team is continuously updating the options for traditional appraisal formats and working with industry colleagues, as well as financial advisors, accountants, and attorneys, to create new appraisal reporting opportunities.

Divorce and Division of Tangible Assets
We have a proven track record assisting collectors at times of divorce and/or division of tangible assets. As an appraisal firm with specialists in a wide range of objects, we handle all aspects of a client’s collection, from wine to collector cars and jewelry.

Often the most difficult aspect of divorce and division of assets is the organization of collection data. We understand the critical importance of this information, and will share data with our client in multiple reporting formats – with the option for different types of value, such as Fair Market Value and Marketable Cash Value.

Expert Testimony
Our appraisers are regularly called upon for expert testimony in cases ranging from divorce, damage and loss/insurance claims, collateral and family disputes. Should we be asked to testify, we will work with the client and their counsel under a separate contract and the client will be billed at an hourly rate for testimony, travel, deposition and/or counsel, including preparation time.

Fractional Interest
We work with clients’ accountants, wealth teams and counsel to prepare appraisals for unique ownership and planning scenarios. Fractional interest appraisals require multiple calculations around percent ownership, appraised value and use. All appraisals include comprehensive narratives and calculation charts that illustrate the breakdown of the market and value, based on the use of the appraisal.

Art Rental or Leaseback
As collectors and their financial advisors begin managing assets earlier and earlier, the rental leaseback scenario has become more prevalent. Should a collector not be ready to physically separate themselves from their tangible assets, rental leaseback becomes a significant option.

Our rental leaseback appraisals prepare rate calculations unique to the objects and collection, for a collector to rent back their assets after transfer. Like our fractional interest appraisals, all rental leaseback appraisals include comprehensive narratives and calculation charts that illustrate the breakdown of rental cost based on the current market, in relation to quality and types of objects in the collection.

Visual Inventory Services

In the event of a catastrophic event, theft or damage, the burden of proof is up to the owner to establish value and a complete inventory of what they own. This can be a challenging endeavor in retrospect, which is why our experienced appraisal team has developed a Visual Inventory product that can streamline the insurance claim process in the event of a loss. 

Our team of seasoned Appraisal professionals will document and provide a photographic record of the residence, including the exterior, individual rooms, and all remaining contents. Significant assets determined to be over $50,000 in retail replacement value will be identified, and recommendations for individually documenting and appraising these items may be provided. The Visual Inventory is a high-resolution, professionally edited video of still images that is provided to the client via digital copy. The Visual Inventory is stored on file with The Fine Art Group in a backed-up, secure drive. In the event of a loss, The Fine Art Group will be able to quickly and efficiently provide the client with the price to replace the lost or damaged assets captured in the Visual Inventory. 

Please see an example of a Visual Inventory here.