Why Estate Planning Appraisals Are Imperative, Not Optional

When most people think of estate planning, they focus on legal documents, wills, or trusts. Yet one of the most overlooked, and most critical, components is the estate planning appraisal. Without it, families can unknowingly lose generational wealth, often in ways that are irreversible.

Recently, I encountered a situation that illustrates this problem all too clearly. A widowed woman, whose late husband had been the primary decision-maker in purchasing fine art and collectibles throughout their lives, began the process of downsizing. Like many in the baby boomer generation, the husband had been the one curating the collection, while the wife was less familiar with its value or significance.

During this transition, she became connected with a local buyer and seller who recognized her lack of knowledge. This individual began purchasing items at a fraction of their true worth. To give one staggering example, a painting she sold for just a few thousand dollars was later appraised, by me, at $450,000 on behalf of the new owner. The buyer casually mentioned there were “several other paintings like that” he planned to acquire from her.

This was not the first time I’ve seen such a situation, and unfortunately, it will not be the last.

Estate Planning Appraisals: Protection and Clarity

Estate planning appraisals are not simply about “knowing what you own,” they serve as an essential safeguard in protecting families and preserving legacies.

Preventing Exploitation – Knowledge is power. A professional appraisal ensures heirs or surviving spouses understand the fair market value of their property, preventing predatory buyers from taking advantage during vulnerable times.

Equitable Distribution – Accurate valuations allow families to make informed decisions in advance, fostering clarity and communication before death, or at the very least, enabling heirs to divide assets fairly. Without this, families may unknowingly create inequities, such as leaving a $200 painting to one child and a $250,000 painting to another.

Insurance Protection – Appraisals often uncover the need for updated insurance coverage. A painting purchased in the 1960s for a few hundred dollars may now be worth hundreds of thousands, requiring adequate protection against loss, damage, or theft.

A Proactive Measure, Not a Reactive One

Too often, families only think of appraisals after a death, when decisions are rushed and emotions are high. An estate planning appraisal should be completed while both partners are still alive, or at least before a collection begins to disperse. It establishes a foundation of knowledge, eliminates uncertainty, and most importantly, protects the financial legacy built over a lifetime.

In short, estate planning appraisals aren’t a luxury, they are a necessity. They are not simply about what “would be good to know,” they are imperative in protecting clients and their heirs from devastating financial mistakes.