Executor Of An Estate? How To Address The Personal Property

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by George Read & Bart Mullin

There is a 100% Certainty You’ll Pay Taxes,
and A 75% Certainty You’ll Handle an Estate

Here are some helpful tips to get you at least through the Personal Property smoothly.

Even if you’re not named the Executor or Personal Representative (PR), you’re more than likely to have to assist with your sleeves rolled up; most estates require a division of assets and often a probate appraisal.  In those cases where you don’t have to file the details with the IRS, the personal property still must be accurately assessed in order to be equitably distributed.  Often the only way to do that correctly is to have an appraisal by a professional you can trust.

Estates usually involve property division, and there are some common pitfalls. First, there is the time-worn adage that in a falling economy you take the money, and in a rising economy you take the goods. But remember, “value” is highly relative. Good appraisers always weigh a variety of comparables to establish value. The price of a chest of drawers, for example, may be $250.00 in one market, and $2,500.00 in another.  You must know the difference. And always remember that if you take an object instead of cash, you will have costs of selling - for your chest of drawers; shipping, insurance, and auction commissions.

There is volatility in financial markets, and also tangible asset markets. Watches, wines and automobiles are good examples of  markets that can run hot and cold.  We’re tempted to add coins to the list. The coin market is on a twenty-five year upward tear, and the prices of gold and silver are beginning to have the feeling of a classic “bubble”. While the art market moves up and down continually, the values for artist’s works, at least for those artists whose works turn up routinely at auctions, is accessible on-line. The tricky part, and the reason people often turn to appraisers, is in comparing a work of art in your possession to others like it.  It’s often the differences and not the similarities that count most in establishing why one painting is valuable, and another is not.

The job of the Personal Representative for an estate is not an enviable one.  In our experience, they are often exhausted.  Good appraisers can help reduce the workload for a PR not just by providing competent appraisals in a timely manner, but by helping to make sure heirs feel they have been treated fairly.  We often tell our clients that just because one member of an estate hired us, it doesn’t mean we are working exclusively for that heir, or their lawyer. Appraisers are bound by code and law to be accurate and non-biased, and the ones you should be dealing with know the codes by heart, and they abide by them faithfully.

One thing we always stress to the PR and people cleaning out estate homes is don’t throw out the paperwork before it has been properly inspected.  Any records may add to value, particularly if they are from a major dealer or reference a collection.  Also, if a family has famous or notable persons, often diary references or old wills can establish provenance.

It’s our advice not to have anything restored for distribution or sale.  The best intentions can hurt value if restoration is done improperly.  Conversely, don’t assume antiques have lost value just because they look a bit of a wreck.  Some of the finest pieces we have come across have looked rough but had their original surfaces left intact.

What has your experience been in dealing with an estate's personal property? 
     
About the Authors:

George Read was an auctioneer and specialist for many years at Sotheby’s. He lectures widely and has over sixty published articles on art and antiques markets.  

Bart Mullin is a certified member of the Appraiser’s Association of America and USPAP accredited appraiser with twenty-five years experience nationally and internationally in the antiques field and as a generalist appraiser.

www.readandmullin.com