Valuing "The Stuff"

          Your Uncle Harry loved classic cars. He even had a few in his garage.  Or maybe your Aunt Sadie collected Hummel figures or carousel horses.  Most of us have something we like to collect. Occasionally these collections actually increase in value over time. Many times our collections are not easy to value except by other collectors. You can bet that someone in the family will think those Hummel figures are worth a lot more than they will bring in an estate sale, but at how much more work to you to sell? Once you have your inventory list, pictures and information about the items to be sold, you’ll want to call in some experts to provide you with a value.  The method of valuation depends on whether the estate is facing litigation or is large enough to file a special type of tax return, the Gift & Estate Tax return.
 
            When conflict is brewing over an estate or if the estate will require a Gift & Estate Tax return (IRS form 706) you’ll want to obtain written values from qualified appraisers.  When there is no conflict between beneficiaries or estate values do not need to be “proven” to a court or the IRS, you can often save some expense by obtaining more informal valuations.  Caution: Do not assume you can use the more informal approach to valuations. Check with your attorney and tax advisor to determine what type of valuation will be required for your situation. 

You’ll find a chart of typical items held in an estate and the manner of valuation you’ll need to use to document the estate asset values on our website click here. Some types of items are more difficult to value.  For example that 1963 Split Window Red Corvette classic car or “Trailer Queen” in Uncle Harry’s garage will need an enthusiast to provide an estimated value.

The initial valuation is crucial when preparing reports to the court or to beneficiaries. Look for an announcement of our upcoming workshop “How to Close An Estate and Not Be the Turkey at the Family Thanksgiving Dinner.”  This workshop style class helps non-professionals named as an Executor or Trustee to wade through the requirements and steps to handling an estate. We’ll cover typical steps required, red flags, and an overview of the required reporting; all designed to help keep you out of the hot water. If you are interested in attending this workshop, let me know so we can send you the future details. For now, take a look at the valuation chart on our website to get an idea of how to get started obtaining proper valuations.

By the way, if you want to see some cool classic cars, look for us at the Hot Summer Nights, Danville Car Show on August 16th, 2012.  We don’t have a refurbished 1963 Split Window Red Corvette to show off but I know my husband will be drooling over any he sees at the show.  Shh! Don't tell me about the one you have to sell from Uncle Harry's garage.