Other Types of Appraisal Services
There are several other circumstances which may call for appraisal services. Several are listed below. Contact Ancient Lands Gallery Appraisers to discuss your unique appraisal service needs.
Liquidation appraisals are often required when a personal property must be distributed, divided, sold or converted into a cash equivalent in a fairly short timeframe. The amount of time available to do this will determine if the liquidation is an orderly liquidation, a forced liquidation, or a quick sale. In addition to being appropriate for the property being sold due to inheritance, or distributed due to divorce or business dissolution, there are several other circumstances in which personal property may also require a liquidation appraisal such as:
- When a client has personal property he or she wishes to sell
- When a property is seized by the CRA for non-payment of taxes
- When a legal property is seized by Canada Customs was brought into Canada illegally
- When personal property is used as collateral for loans in the event of a loan default
- When property must be sold due to bankruptcy as needed to distribute cash to creditors
These are sometimes required for property processed in Probate Court if the estate value exceeds at least a certain minimum level to file any income, estate, inheritance and gift taxes.
Property Held in Trust Appraisals:
Trusts are typically used to keep personal property from being included in estate taxes or processed through probate. Appraisers may be called upon to prepare appraisals for property held in trusts for any number of reasons including to obtain and update insurance policies, to make tax-deductible non-cash charitable contributions, to distribute among beneficiaries or to use for asset-based loan collateral.
State Inheritance Tax Appraisals:
Some states have state inheritance tax laws in addition to federal laws. The laws regarding how property should be valued differ from state to state. It is important to know what state inheritance tax laws are in effect in your state.
Appraisals may be required so that guardians can make sound decisions regarding the management of another person’s property including their sale or defend their decisions regarding property management to a court. Guardianship laws vary by jurisdiction.
Casualty Loss or Theft Appraisals:
Owners of personal property stolen, lost or destroyed as a result of a disastrous event such as a fire, flood, hurricane, earthquake or accident may be able to deduct that loss from their adjusted gross income for tax purposes. The amount of the loss requires an appraiser to calculate the lesser of the decrease in the fair market value as a result of the theft or casualty or the adjusted basis in the property before the loss.
Asset-based Lending Appraisals:
A loan made through a bank or other lender is often secured by some kind of personal property collateral such as a car, machinery, or equipment. More recently, art, antiques and significant collections are also being used as collateral. An appraisal may be required at the time of the loan origination to confirm the value of the collateral. One may also be required as stated above if the collateral needs to be liquidated in the event of a loan default.
Ancient Lands Gallery Appraisers has performed many of these other appraisal services, and we are committed to providing you with the best and most accurate appraisals possible. If we do not currently have, or cannot efficiently and effectively acquire, the expertise needed to take on an unusual request for other appraisal services, we will let you know and will refer you to another appraisal firm or specialist where possible.