Why Accurate Appraisals Matter in the New Year
An elderly man, after a lifetime of collecting, realizes it may be time to downsize a bit. He has more in his collection than he can possibly give to his children, so he has to think of other options. But he isn't sure how to start. Part of the issue is that he isn't really clear about the value of what he has. This is one instance where a profesional appraiser can help. Whether it is dividiing an estate, buying insurance, making non-cash charitable contribiutions or one of many other scenarios, an appraiser can help you and your family to make better decisions. And the New Year is often a time when we turn to these kinds of issues - tax preparation, estate planning, or decluttering resolutions. Read on for more about how appraisals can help.
Start Tax Season Right
Appraisals are crucial for valuing charitable donations. Non-cash charitable donations can play a big role in reducing your taxes when you itemize. In order to get the biggest deduction, you need an accurate appraisal. The IRS requires appraisals done by a "qualified appraiser" for items worth $5,000 or more. Below that number, you can do the valuation yourself, but may have greater peace of mind if you hire an appraiser. In any case, be sure you keep proper documentation (including a copy of the appraisal report) in order to avoid audits or, worse, penalties.
Ensure Fairness in Estate Planning
A loved one's passing away is never easy. The last thing anyone wants at this time is conflict. Having a will can minimize this, but when there is a large estate and the will is not sufficiently itemized, it might be useful to have an appraisal of the personal property to help ensure fairness when distributing among heirs. This can bring peace of mind that comes with knowing the fair market value of personal property, especially family heirlooms or collectibles. Appraisals can also simplify probate should that be necessary. Disputes among heirs are unfortunately not uncommon - an appraisal can help to reduce them.
Protect What Matters Most
Nearly everyone knows the value of having homeowners insurance in case of fire, theft, or other loss to your home. But did you know that your standard policy may or may not be adequately protecting your valuable personal property? Especially if you have valuable antiques, art, or jewelry, it may worthwhile to ask your agent what the terms of your policy are. Appraisals can help ensure adequate insurance coverage. And this valuation should be routinely updated as markets can change rendering items more, or less, valuable than they once were. This can leave you either paying too much in premiums if you have more insurance than you need, or, perhaps worse, unable to fully recoup your losses should items be damaged or lost.
Maximize Your Returns
If you are faced with having (or wanting) to downsize, having a current appraisal can help you decide what to keep, what to sell, and what to donate. Especially if you are inheriting items, it's possible there can be quite a few surprises in store as far as how much things are worth. This can go both ways - being pleasantly surprised that ugly old piece of pottery on the shelf is actually worth beaucoup bucks, and being sadly disappointed to learn that what you thought was a valuable antique dresser is really only going to bring $50, tops. In general, however, the news is good: the market for vintage and antique goods is quite strong, growing faster than the overall retail market. Consumers are attracted by the value, sustainability, and uniqueness of buying used items. You have lots of options for selling your items: eBay, local auction, yard sale, estate sale, and Facebook Marketplace being among them. If you are considering an estate sale, I can help! Check out my estate sale services here.
Why Wait? Start the New Year Right!
Appraisals can be quite useful in helping you make hard decisions and can even save you money! If I can be of help, please reach out today - I promise I will give you results you can count on.
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