Different Types of Jewelry Appraisals
A jewelry appraisal is a document prepared by a qualified and experienced gemologist.
The most common appraisal request is for Insurance Replacement
Replacement value appraisals are required for insurance coverage of jewelry and watches. The descriptions are usually the most detailed of any appraisal type and include the quality and condition of the item. The replacement value is usually based on the similar item of comparable kind and quality.
Divorce: This type of appraisal is used to divide the marital estate assets.Typically a fair market or liquidation value
State Probate: Property mentioned in a will needs to be appraised by a qualified appraiser.
Trust: Appraisals for trusts are similar to appraisals for estate settlement, and are based on fair market value. They need to be updated periodically.
Equitable Division/Distribution: Used to divide an estate among its heirs in an impartial and financially fair manner. In general, it is based on Fair market value, liquidation value and marketable cash value.
Estate Tax: An estate tax appraisal is a legal document for Federal tax purposes and/or for state probate of property named in a will. The IRS requires that the property be appraised at Fair Market Value, which is the amount for which the jewelry would change hands, in its present (used) condition in its most common market.
Estate Planning/Distribution: In estate planning or distribution, take into account that one individual might receive jewelry, while another might receive art or real estate, and the appraisal should facilitate a fair market value division.
Litigation: Unfortunately, jewelry sometimes becomes the subject of a dispute that needs to be settled in the courts. Professionally trained appraisers have the expertise to offer their opinion of value in an unbiased manner to help the court in reaching a proper decision.