When surveyed, over 60% of employees agreed that fine art in their workplaces inspired their…
Art valuation is nothing new but it has grown in popularity in recent years. It is a complex process that requires the expertise of a qualified art appraiser. If you’re a high net-worth individual with an art collection, then knowing the value of the art in your possession is vital. Here are some reasons why appraisals have come into demand.
1. Art Insurance
When possessing valuable art pieces, it is essential to have them insured. Art insurance protects art collectors from loss due to damage, theft, or other disasters. In order to get art insurance, you need to have an art valuation done to determine the value of the art and how much coverage is needed.
2. Estate Planning
If you’re a high-net-worth individual, then you likely have an estate plan in place. Part of estate planning is determining the value of your assets, including art collections. Valuating assets is commonly requested for estate planning purposes.
3. Tax Deductions
If you donate art to a nonprofit organization, then you may be able to take a tax deduction. Before calculating a deduction, the IRS requires information from an appraisal.
When someone dies, their art collection may go through probate if it was not put into a trust. Probate is the legal process of distributing a person’s assets after they die. Art valuations are often requested during probate to determine fair distribution amongst the heirs.
In the event of a divorce, art collections are often subject to division. Valuating an art collection helps determine how it should be split between the divorcing couple.
If you’re considering purchasing art, then you may want to have it authenticated first. A valuation of the painting or sculpture can help to determine the authenticity of the work. Unfortunately, art fraud is rampant, so authentication is a necessary step to ensure that you’re not buying a fake.
7. Unsure of the Value
Even if you’re not planning to insure, sell, or donate your art, you may still be curious about its value. Many art collectors simply want to know how much their art is worth. In this case, getting art appraised can provide bragging rights and a sense of accomplishment.
These are just a few of the reasons why art valuations have come into demand. If you’re a high-net-worth individual with an art collection, then it’s important to know the value of your art. They can be used for insurance, estate planning, tax deductions, probate, and divorce.