How to appraise and sell an estate's art, jewelry, and collectibles

1. Check what you can sell

Read the will before promising a ring to a relative or accepting an offer for a painting. Check any relevant trust documents, too. An item in the home may belong to a surviving spouse, a trust, or someone who lent it to the person who died.

Your power to sell depends on state law, the estate documents, and the terms of your appointment. Ask the estate's lawyer whether you need to give notice or obtain court approval. If the will leaves a particular item to someone, get advice before selling it.

2. Photograph the items and gather their records

Give each item an inventory number to match it with its photos and paperwork. Note its condition, location, and who has it. Gather these details:

• Art: photographs of the front and back, dimensions, signatures, gallery labels, receipts, and exhibition records.
• Jewelry and watches: photographs of markings and serial numbers, old appraisals, gemstone reports, receipts, and original boxes.
• Collections: catalogs, purchase records, certificates, and notes identifying individual pieces.

3. Ask for the right kind of appraisal

Tell the appraiser what you need the report for. A probate inventory, tax return, insurance policy, and proposed sale can require different valuations. Your lawyer or tax preparer can confirm the valuation date and report requirements before you pay for the work.

An old insurance appraisal may help identify a piece of jewelry, but its price isn't a resale promise. Jewelers of America explains that fair market value can be lower than the cost of replacing the item in a store.

4. Choose where to sell

You can use different sellers for different belongings. Consider these options:

• A specialist auction house can assess a piece for a suitable sale. Ask about results for similar items and the proposed auction date.
• A dealer or jeweler may offer to buy outright. Get the offer in writing and compare it with another offer or an independent appraisal.
• A gallery or consignment shop holds the item for sale and pays you under the agreed terms when it sells. Ask how long the agreement lasts and how you can retrieve an unsold item.
• An estate sale or local auction may suit ordinary household contents. Set aside anything needing specialist review before agreeing to sell the contents together.

5. Compare what the estate will receive

Ask for the expected payment after all charges. Check commission, transport, insurance, photography, and storage costs, along with any fees for withdrawing an item or taking it back unsold.

At auction, the reserve is the agreed minimum selling price. Ask what happens if bidding falls short. Confirm when you'll be paid and whether payment depends on the buyer paying first.

Compare those terms alongside the estimate or offer. A higher headline price can leave the estate with less money after costs.

6. Keep the appraisal and sale records

File the appraisal, signed agreement, sale statement, and payment record under the item's inventory number. Record the sale price, each expense, and the amount the estate received. Keep estate proceeds separate from your personal money.

The appraisal may also matter for taxes. Under the general federal rule in Internal Revenue Code section 1014, inherited property's tax basis is its fair market value at the owner's death. Basis is the starting amount used to calculate a taxable gain or loss. Exceptions and alternate valuation rules can apply.

Keep that value separate from the later selling price in your records. Ask the tax preparer who must report the sale, the estate or the beneficiary, and what supporting documents to retain.

Keep your inventory in one place

Legacywyse lets you record estate belongings with photos, descriptions, and notes. Add an entry for each valuable item so you have its details ready when speaking with an appraiser or seller.