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Insurance: Homeowner’s policies only cover a certain amount of household
contents, so if clients suspect they have items of value, it is important to
establish that value to be sure they have adequate coverage. In addition, when
a loss occurs there is often dispute between the owner and the insurance
company over the value of the damaged or stolen item. If an appraisal is
conducted by an accredited, unbiased appraiser before a loss and is on file
with the insurance company, this reduces the likelihood of a litigious situation.
The value estimated in this case would be Replacement Value.
Estate Settlement: When a loved one passes, it is necessary to value the
property owned and transferred in a will so that the proper estate taxes can be
paid to the IRS. The IRS rules state that the value estimated in an estate
appraisal be Fair Market Value.
Divorce: In a divorce proceeding where the two parties cannot amicably divide
the common holdings, an appraiser is called in either by one or both of the
parties or ordered by the judge overseeing the proceedings. The laws vary
from state to state, but, generally, Fair Market Value is used in an appraisal
prepared for divorce purposes.
Property Division: Property division usually coincides with estate settlement or
division of a domestic partnership that does not qualify as a divorce. This
appraisal is usually not for legal purposes, but simply to make sure the
property is divided equitably among all parties involved. Usually, Fair Market
Value is used in these cases, but occasionally the parties request
Replacement Value. If the situation is not governed by law, the parties can
choose which value they wish to be estimated.
Sales: If a client is interested in selling something believed to be of value, it is
often beneficial to have an appraisal completed before trying to sell the item to
assure the piece is neither over- nor under-valued in a sale. Fair Market Value
is the type of value estimated in an appraisal for sales.
Charitable Donation: When an item is donated to a museum or charity auction,
for example, and the client wants to write off the donation as a tax deduction,
the IRS requires an appraisal be filed with the tax return. As with estate taxes,
the IRS requires the value estimated to be Fair Market Value.
contents, so if clients suspect they have items of value, it is important to
establish that value to be sure they have adequate coverage. In addition, when
a loss occurs there is often dispute between the owner and the insurance
company over the value of the damaged or stolen item. If an appraisal is
conducted by an accredited, unbiased appraiser before a loss and is on file
with the insurance company, this reduces the likelihood of a litigious situation.
The value estimated in this case would be Replacement Value.
Estate Settlement: When a loved one passes, it is necessary to value the
property owned and transferred in a will so that the proper estate taxes can be
paid to the IRS. The IRS rules state that the value estimated in an estate
appraisal be Fair Market Value.
Divorce: In a divorce proceeding where the two parties cannot amicably divide
the common holdings, an appraiser is called in either by one or both of the
parties or ordered by the judge overseeing the proceedings. The laws vary
from state to state, but, generally, Fair Market Value is used in an appraisal
prepared for divorce purposes.
Property Division: Property division usually coincides with estate settlement or
division of a domestic partnership that does not qualify as a divorce. This
appraisal is usually not for legal purposes, but simply to make sure the
property is divided equitably among all parties involved. Usually, Fair Market
Value is used in these cases, but occasionally the parties request
Replacement Value. If the situation is not governed by law, the parties can
choose which value they wish to be estimated.
Sales: If a client is interested in selling something believed to be of value, it is
often beneficial to have an appraisal completed before trying to sell the item to
assure the piece is neither over- nor under-valued in a sale. Fair Market Value
is the type of value estimated in an appraisal for sales.
Charitable Donation: When an item is donated to a museum or charity auction,
for example, and the client wants to write off the donation as a tax deduction,
the IRS requires an appraisal be filed with the tax return. As with estate taxes,
the IRS requires the value estimated to be Fair Market Value.
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