5 Benefits of Adding a Qualified Appraiser to Your Estate Management Team
Surprisingly, many individuals have never worked with a qualified appraiser as part of their estate management team and are unaware of the benefits and knowledge an appraiser can provide when dealing with personal property.
A qualified appraiser can assist with the following:
1. Help plan, manage and overcome the “where to start” barrier. An appraiser can meet with you and your family to discuss the importance of specific objects and how their value is determined. A plan can be created to outline the process and management of the objects for the future stating what to do and when.
2. Document and value your personal property in an appraisal report. Completed now, the appraisal report can be easily updated in the future. A qualified appraisal report contains justified values for each object based on the proper value characteristics and best markets in which the objects are traded. There are unique value characteristics for each category of personal property used to determine the value and/or to sell high-value objects. If you or your beneficiaries don’t understand or know what these are, expensive errors in managing the objects could be made.
3. Make things fair within the family. An appraiser can determine the estimated values of objects to ensure beneficiaries receive objects of equal value. When dealing with collections of high-value objects, joint ownership and breaking up a curated collection could decrease the overall value significantly. In some cases, a group of objects is more valuable than each piece individually. Working with a qualified appraiser can assist in knowing the correct assessment of multiple objects and ensure that value is maintained when there is more than one beneficiary, and how, if at all, objects should be distributed.
4. Understand the markets for collectible objects. An appraiser can help beneficiaries understand how, for example, the art or numismatic markets operate. They can advise on what artists are performing well or the best places to list certain coins for sale. They can advise on the likelihood of specific pieces increasing or decreasing or holding current values based on market performance and trends. An appraiser can explain the transaction costs associated with selling and donating collectibles.
5. Work with your other advisors or trustees to make good decisions at the right time for your family’s benefit. Collectible objects require unique treatment and market knowledge which most estate trustees won’t have. A qualified appraiser can help beneficiaries make good decisions and avoid reckless ones. They can help them manage the impact and stress of suddenly having to manage a large collection. They can assist with options for storage; shipping and handling; and options for selling, donating or insuring the collection.
When looking for a qualified appraiser, look for an appraiser who has a post-secondary education from a recognized university and has at least 1 to 2.5 years of full-time and specific experience in market-related activities dealing with the specific category of personal property.
A qualified appraiser has taken specific courses in personal property standards, valuation methodology and appraisal specializations, and should be a current member of a recognized personal property appraisal association such as the International Society of Appraisers (ISA).
Article by: Kelly Juhasz, president of the Canadian Chapter of the ISA
Kelly is a qualified appraiser specializing in fine art and archives and able to value all personal property. She is an Accredited Member of the International Society of Appraisers and a member of ISA’s Private Client Services Group, a group of qualified appraisers who have completed specialized training and hold senior level industry experience in dealing with High Net Worth Individuals. She works with insurance companies, wealth advisors, estate lawyers and government agencies. She also works directly with collectors, families, family offices, estates and beneficiaries. View her profile here.
The International Society of Appraisers (ISA) is the largest of the professional personal property appraisal associations representing the most highly trained and rigorously tested independent appraisers in Canada and the USA. It is a not-for-profit, member-driven association, formed to support member needs and to enhance public trust by producing qualified and ethical appraisers who are recognized authorities in personal property valuation. ISA member appraisers offer expertise in many specialty areas including antiques, books and maps, collectibles, decorative and residential contents, fine art and gems and jewelry, as well as, livestock, business equipment and intangible property.
ISA Chicago: https://www.isa-appraisers.org
ISA Toronto: https://www.isa-appraisers.ca/
