Parsons Fine Art Advisory

For counsel and fiduciaries

Working with attorneys, CPAs and trust officers

Most of this work reaches the practice through a professional adviser rather than the client. Instructions on art and personal property matters have come from trusts-and-estates, tax and matrimonial counsel at firms in Rochester, Buffalo and Syracuse. References are available on request.


What you need

Three things

An appraiser who arrives through your referral represents your judgment to your client.

  • A report that survives examination. Methodology stated, standard of value identified and justified, comparables documented and reproducible, assumptions and limiting conditions written out, and a signed certification. If an examiner or opposing counsel takes it apart, the reasoning must be visible.
  • A schedule that matches your filing date, not the appraiser’s convenience. If the date cannot be met, you will be told at the first call.
  • Someone who does not need managing. You should be able to hand off the property question and stop thinking about it.

By practice area

Where instructions usually come from

Trusts and estates

Fair Market Value as of the date of death for Form 706 and the New York return, probate inventory in Monroe County Surrogate’s Court and neighboring counties, stepped-up basis for heirs, and impartial figures where a will directs property to be divided. Say at the outset if the estate is anywhere near the New York cliff at 105% of the exclusion; it changes how the contents schedule must be supported. Estate appraisals

Matrimonial

Marketable Cash Value for equitable distribution, as a neutral or party-retained expert, across Monroe, Ontario, Livingston, Erie and Onondaga counties. Reports built for litigation from the first page. Divorce and equitable distribution

Tax and charitable giving

Qualified appraisals for non-cash contributions over $5,000 with Form 8283 Section B signed, gift tax appraisals supporting Form 709 and adequate disclosure, and advice on sequencing a gift within the 60-day rule. Charitable donation · Gift tax

Insurance and loss

Scheduling values for carriers and brokers, and pre-loss, post-loss and post-conservation figures with a written diminution-in-value analysis where a claim is disputed. Damage and loss

The traps

Five ways these assignments go wrong

  1. The wrong standard of value

    An insurance figure on an estate return overstates the estate. A replacement figure in a matrimonial matter can distort a settlement threefold. The purpose must be fixed before the work starts, and it belongs in the engagement letter.

  2. The appraisal dated too early

    For a charitable contribution the report must be signed no earlier than 60 days before the date of the gift. An appraisal commissioned a year ahead of a planned donation does not qualify. It is the most common avoidable defect in the field.

  3. The contents dispersed before valuation

    Once property has left the house the date-of-death value becomes far harder to support, and the modest-looking object in the back bedroom is usually the one that mattered. Call before the clear-out, not after.

  4. An appraiser with an interest in the number

    A dealer who values property they might buy, or an appraiser paid a percentage of value, has a problem the report cannot cure. This practice’s fee is hourly and never based on value, and the practice neither buys nor sells.

  5. An appraiser working blind to where the estate sits

    Comfortably under the New York exclusion, near the 105% cliff, or well above it are three different assignments. The practice does not need the estate plan, only which of the three applies. Without it, an appraiser either over-researches property that never needed it or under-supports the schedule that did. On a taxable estate the exposure runs toward understatement, the opposite of the instinct carried over from donation work.

For your client

Two documents you can hand them

Both are written for the client rather than for the practice, and neither asks them to make contact. Send them to a client who is not yet ready to speak with an appraiser.

What counsel usually asks

How quickly can a report be turned around?
Two to three weeks from inspection for a standard report; four to six weeks where the assignment is IRS-facing. If you have a filing date, a closing or a court date, say so at the first call and you will get a straight answer on whether it can be met.
Will the practice testify?
Yes, at deposition and at trial, billed at the litigation rate. Early retention is preferable to being asked to defend a report someone else wrote.
Can the practice act as a neutral for both parties?
Yes. Both parties and both counsel must agree the engagement and scope in writing before work begins, and both receive the same report at the same time. Value is never discussed with either side outside that document.
What is needed to start?
The purpose, the effective date, the intended users, the deadline, and access to the property, plus any prior appraisals, invoices, provenance files or insurance schedules the client holds. Everything you send is time not billed for finding it.
Does the practice carry professional liability insurance?
Yes. Professional liability coverage is in place, and a certificate of insurance can be supplied for your engagement on request.
How are conflicts handled?
Michael Parsons is employed as a research and cataloguing specialist at Cottone Auctions. Where an assignment touches property that employer has handled or may handle, the practice discloses it in writing before accepting the engagement; where independence cannot be assured, it declines and refers.

Send the matter

The purpose, the effective date and the deadline are enough to say whether the practice can help, and what it will cost.