<![CDATA[CLEVELAND APPRAISAL CONSULTANTS - Articles]]>Wed, 21 Jan 2026 12:16:20 -0800Weebly<![CDATA[Estate Planning: Maximizing Collections and Heirlooms.]]>Tue, 02 Jun 2015 15:09:08 GMThttp://www.clevelandappraisalconsultants.com/articles/estate-planning-maximizing-collections-and-heirlooms
With the hustle and bustle of daily life, it is sometimes easy to overlook that many aspects of estate planning, while not only pro-active, can be a valuable comfort for a family's future generations. Assets belonging to clients come in all shapes and sizes, such as investments, real estate, jewelry and other tangible personal property. The way to protect those valuables for the future differs depending on exactly what they are.
For personal property, including collections of art or collectibles amassed over a lifetime as well as family heirlooms handed down from generation to generation, the best way to protect those assets is to make sure they are properly insured in case of a loss.  But how can you insure what you don't know the exact value of?

That's when a qualified personal property appraiser can become a key partner for your clients. A personal property appraiser will provide a thoroughly researched, accurate and up-to-date appraisal of your clients possessions so they can feel comfortable knowing exactly what their tangible assets are, and more importantly, that they are protected for the future. It's key to for clients to talk to children about what personal property (i.e., furniture, art, jewelry, collectibles) they want to receive. In many cases, the single most consistent point of estate conflict is not the cash, securities, or real estate, but personal property – that grandfather clock or piece of jewelry or artwork.

Once parents and children have made their choices, and sometimes even before the subject of family distribution is brought up, it's an ideal time to have a qualified appraiser prepare a detailed appraisal report of these collections and heirlooms to assist the family in this process. Conversely, children or heirs may not want a valuable collection because it doesn't “fit into their lifestyle”, or it really only had meaning to the original owner. In that case, the collection may be may donated to a museum or educational institution. For donations of that magnitude, the IRS also requires a written appraisal report from a qualified appraiser.

This type of documentation is particularly important for second marriages. A will might say “I pass all of my personal property to my children” who are from a prior marriage. But because most personal property does not have any title documents evidencing ownership, a surviving spouse may claim the assets as his or her own. Which then brings us to the question - what makes a good appraisal report?  According to the International Society of Appraisers, the answer is multi-fold:

  • A cover document explaining in detail what type of value is being sought and the intended use of the appraisal.
  • The methodology and resources relied upon, including market analysis and markets selected.
  • A complete and accurate description of the property so it may be identified without photos, although many appraisal reports do contain photos to provide greater detail.
  • The date(s) and location of inspection and the effective dates of value.
  • A statement by the appraiser that he or she has no interest in the property, or that such interest is disclosed in the report.
  • The appraisers qualifications and signature.

The fine and decorative arts collector who is looking to have his collection appraised should consider how an appraiser represents his or her credentials. A good appraiser should:
  • Have a formal education in appraiser theory, principals, procedures, ethics and law. 
  • Have professional credentials based on testing and successful course completion
  • Is an expert on your clients type of property.
  • Takes continuing education course to stay up to date on the latest appraisal standards.
  • Adheres to a professional code of ethics.

When you choose a qualified and trained appraiser for estate planning purposes, you and your clients can feel comfortable making informed decisions regarding insurance, property division and tax implications. A professional appraiser helps you manage these and other risks by providing a well-researched written opinion of value that contains everything mentioned above in a detailed, thorough, and up-to-date appraisal report.




]]><![CDATA[Giving Non-Cash Assets to Charity - What the IRS Wants You to Know]]>Tue, 02 Jun 2015 14:58:39 GMThttp://www.clevelandappraisalconsultants.com/articles/giving-non-cash-assets-to-charity-what-the-irs-wants-you-to-knowClients come to you needing different types of assistance with life events be it divorce, death or simply the need to downsize for a myriad of reasons. Inevitably, they may be forced to dispose of treasured possessions due to space limitations or a need for ready cash and they have to part with art, antiques, furniture, clothes and other no longer needed residential contents.  Their options may include:
1.Gifting to family or friends

2. Holding a liquidation sale

3. Sending item to auction

4. Making a non-cash charitable donation to a favorite non-profit.

With the secondary market currently very soft in terms of items maintaining value, your clients may feel their best option is the last one – a charitable non-cash donation.  When that option is selected, keep in mind the Internal Revenue Service has several requirements that need to be met in order for your clients to receive a tax deduction.  

To figure how much they may deduct for such personal property donations, clients must first determine the fair market value on the date of the contribution. There is often a lot of confusion surrounding this term. The IRS definition of Fair Market Value (FMV) is simply the price that property would sell for on the open market. It is “the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.”

There is no fixed formula for this type of determination, and many times the donee leaves this up to the donor to determine. An example of this is when you make a donation to a charity and you're given a blank receipt – exactly how are you supposed to fill it out?  This is where a Qualified Appraiser can help, but more on that later.

The $500 Threshold

Most of the time, the FMV of used household goods, furniture and clothing is much, much lower than the price paid when new. Such property may actually have little or no market value because of its used or worn condition. It may be out of style or no longer useful. However, the IRS states you cannot take a deduction for household goods or clothing unless they are in “good” used condition or better. If your client still wishes to make a donation, but the items to be donated are not in good condition, they must be made aware that any household goods that are not in good used condition or better for which a deduction of more than $500 is taken, requires a qualified appraisal by a qualified appraiser – so what is that?

Generally, a Qualified Appraisal is a document that is created, signed and dated by a qualified appraiser which requires the following information:

  1. A description of the property in sufficient detail for a person who is not generally familiar with the type of property to determine that the property appraised is the property that was contributed,

  2. The physical condition of any tangible property,

  3. The date of contribution,

  4. The terms of any agreement or understanding entered into by or on behalf of the donor that relates to the use, sale, or other disposition of the donated property,

  5. The name, address, and taxpayer identification number of the qualified appraiser,

  6. The qualifications of the qualified appraiser who signs the appraisal, including the appraiser’s background, experience, education, and any membership in professional appraisal associations,

  7. A statement regarding why the appraisal was prepared, 

  8. The date on which the property was valued, 

  9. The appraised FMV on the date of contribution,

  1. The method of valuation used to determine FMV, such as the income approach, the comparable sales or market data approach, or the replacement cost less depreciation approach, and the specific basis for the valuation, such as any specific comparable sales transaction.

  2. The specific basis for the valuation, such as any specific comparable sales transaction.


The $5,000 Threshold


For donations of any combination of goods (furniture, a collection of items, designer clothes, accessories, decorative art, etc...) with a FMV of over $5,000, the IRS also requires the donor must obtain a written qualified appraisal from a qualified appraiser, accompanied by IRS form 8283. Keep in mind neither the donor of the property nor the donee organization is considered a “qualified appraiser” for the purpose of valuing the donated property – they are considered “excluded individuals” - so who is qualified appraiser?


A Qualified Appraiser is an individual who meets all the following requirements:

  • Have earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or

  • Have met certain minimum education and experience requirements. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.

  • Regularly prepares appraisals for which he or she is paid

  • Demonstrates verifiable education and experience in valuing the type of property being appraised

  • The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal

  • Is not an excluded individual


The $50,000 Threshold

On the other end of the spectrum, for donations of art valued at $50,000 or more, your client must request a Statement of Value for that item from the IRS. The statement must be requested before filing the tax return that reports the donation and must include the following:

  1. A copy of a qualified appraisal of the item

  2. A $2,500 check or money order payable to the Internal Revenue Service for the user fee that applies to the request regarding one, two, or three items of art. Add $250 for each item in excess of three

  3. A completed Form 8283, Section B

  4. The location of the IRS territory that has examination responsibility for the return


To help you locate a qualified appraiser for your clients non-cash charitable donation, check the internet for national appraisal associations.  Three of the largest are the International Society of Appraisers, the Appraisers Association of America, and the American Society of Appraisers.




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