Why consult an art and antiques appraiser in the event of an inheritance or divorce?
Handling an inheritance or divorce is often a complex and stressful process. Matters become even more complicated when the estate includes paintings or other movable property whose value is unknown. In such cases, the role of the art and antiques appraiser can be essential.
The first challenge: determining the true value of the assets
The initial difficulty lies in knowing whether the inherited items actually hold any value. Many people go directly to antique dealers or buyers (such as silversmiths or jewelers) for guidance. However, it’s important to remember that these professionals are first and foremost buyers, whose primary interest is to make a profit.
No matter how professional they are, they are unlikely to offer a true market value. It is common for them to purchase items in bulk, offering prices significantly lower than what could be achieved by selling the pieces individually.
What about contacting an auction house?
Another option is to approach an auction house, which may send an expert to your home if it considers the items to be of interest. However, auction houses do not purchase the pieces; they provide an estimated value for those they find potentially salable.
This starting price is typically low, intended to generate interest among bidders. Furthermore, if the items are not of high value, the auction house may only offer an email address for sending photos—and may not even visit your home.
The key figure: the art and antiques appraiser
An objective and impartial professional
The art expert appraiser is a professional regulated by Spain’s Civil Procedure Law 1/2000, of January 7. They are legally bound to act objectively and impartially, with no interest in buying or selling the items being appraised.
This ensures an unbiased market valuation, which can help avoid disputes among heirs or between divorcing spouses when assets must be divided.
Transparent assessment, free from conflicts of interest
When you are unsure about the value of inherited property, the most advisable course is to request an in-home visit from an art appraiser. This professional will examine the items and provide a clear and impartial valuation.
Once valuable pieces are identified, they will issue a formal appraisal report with no personal stake in the outcome. This provides essential information for making well-informed decisions.
Strategy and planning with help from the appraiser
With guidance from the appraiser, you can develop a strategy to maximize the value of the inherited assets. They can also help you avoid lowball offers that would diminish the estate’s value.
If the goal is to keep the artworks within the family, the appraiser can assist in facilitating a fair and equitable distribution. This involves assembling groups of items with comparable value, taking into account not only current prices but also the future market potential of the artists.
Keep in mind that the art market is dynamic, and valuations can fluctuate. The appraiser is the most qualified person to anticipate these changes.
Documentation, cataloguing, and export guidance by the art appraiser
Gathering relevant information
Once valuable pieces have been identified, the appraiser will ask for all available documentation: purchase or restoration invoices, exhibition catalogues, certificates, etc. If this information is not available, they can conduct a documentary study to verify authenticity.
They may even assist in including works in the artist’s catalogue raisonné, provided the authorship can be verified and the pieces are not yet registered. Such cataloguing adds value and legitimacy to the works and prevents issues in future transactions.
Legal limitations on export
In Spain, works of art over 100 years old are subject to export restrictions. To sell or donate these pieces outside the country, authorization from the Ministry of Culture is required.
The appraiser can assist in processing these permits. If the work is declared a Cultural Heritage Asset (BIC), attempting to export it without authorization could constitute a criminal offense against national heritage laws.
Conservation, restoration, and tax obligations handled by the appraiser
Advice on conservation and restoration
The appraiser can also provide guidance on preserving inherited artworks, and recommend restoration if necessary.
Tax obligations following an inheritance
Inheritances involve tax obligations. Each autonomous community in Spain applies a different rate for the Inheritance Tax, so the applicable legislation must be reviewed based on the location of the assets and the deceased’s tax residence.
In such cases, the support of a tax attorney is essential. They will help you legally optimize your tax position and regularize any unresolved matters of the deceased. The expert appraisal report will serve as the basis for properly declaring the movable property, thereby avoiding penalties from the tax authorities.
Declaring capital gains or losses
The appraisal report is also valuable if you later decide to sell any of the artworks. Any capital gain must be declared in your personal income tax (IRPF). The report will serve as the reference for calculating either a gain or a loss and properly reflecting it in your tax return.
How much does it cost to hire an art appraiser?
The cost of an expert appraisal report is not high, especially when compared to the potential losses from undervaluing items, unfair distribution, or incorrect tax filings.
Some appraisers set their fees based on the value of the items, but we advocate for flat rates independent of item value, to ensure objectivity in the valuation process.
Moreover, the appraisal fees can often be charged to the estate itself, easing the financial burden. These costs are deductible from the taxable base of the inheritance.
Do you need advice? Access our areas related to the appraiser of art and antiques in the event of an inheritance or divorce: