Educational Opportunities for Appraisers and Collectors in California

AAA: Tour of the George & Dorothy Saxe Collection of Glass & Ceramics

August 30, 2016

San Francisco

Initiatives in Art & Culture: 18th Annual Arts & Crafts Conference:

The Arts and Crafts  Movement in Pasadena and Environs

September 22-25, 2016

ArtTable Tours: San Francisco

October 13 – 16, 2016

ISA: USPAP 7-hour Update for  Personal Property Appraisers

November 3, 2016

Alameda

Appraisal Course Associates: USPAP 7-hour Update for Personal Property Appraisers

Live on-line

various dates

 

 

STRENGTH OF THE CALIFORNIA ART MARKET

Artfix Daily ran a good article titled “Four Reasons Why Historic Art Remains Important To The California Market” written by the editorial staff at William A. Karges Fine Art.

The major points discussed regarding Early California paintings (1870-1940) are:

  1. Traditional art is self-sustaining
  2. It preserves our (California) history
  3. Historical art preserves our environment
  4. The market is strong

To read the full article, see the following link at Art Fix Daily:

Strength of the California Art Market

 

Insurance Coverage for Valuable Possessions

Your home / condo owners or renters insurance policy should be reviewed once a year to make sure your coverage is right for your current needs.  One of the most common mistakes people make is to assume their valuable possessions are covered under their standard property policy.  This is not true in most cases.

Some of the items that need extra protection include jewelry, furs, cameras, silverware, antiques, musical instruments, collections, fine art and manuscripts or books.  Some policies don’t cover breakage, so if you have a collection of art glass or porcelain you may need special coverage as well.

Additional protection can be obtained by purchasing scheduled personal property coverage or a floater / rider.   Rates are generally a small percentage of the total value of the items you are insuring.  To determine the value, you’ll need to provide a receipt or hire an independent appraiser qualified to appraise the type of items you have.

Everyone’s policy is different, so check with your insurer to determine your needs.   If you purchase new items you’ll need to add them to your policy as well.  Review your policy regularly.

Resources:

Insurance Coverage: Know Your Choices from A Homeowners Insurance Guide to Natural Disasters

What is Covered by Standard Homeowners Insurance? from the Insurance Information Institute

International Society of Appraisers

 

About the Author: Kathi Jablonsky, ISA CAPP is a certified appraiser of personal property designated in Antiques and Residential Contents with the International Society of Appraisers. She is based in Southern California and serves the San Diego and Palm Desert regions.

 

 

 

 

 

 

Death, Debt, Divorce, Disaster – The 4 D’s

We don’t like to think about it, but there are several situations where our art, antiques and collectibles will be affected in a major way.   Life’s events have a way of separating us from our possessions.

The Canadian Chapter of the International Society of Appraisers recently posted a good article on the subject titled “Not Till Death, Debt, Divorce Do We Part” by Julia McLaren.   It discusses the first three D’s and how proper planning and use of professional appraisers can assist during these times.

I would like add a fourth “D” to the list ….. disaster.  Our beloved objects can be damaged or in the worst case scenario, destroyed.  I discussed this subject in an earlier post titled  “Protecting Your Valuables from a Disaster”.

Protection of your collection and planning for the future is essential.  By having an inventory and professional appraisal, you can make informed decisions regarding insurance, donation, division or liquidation.  At the end of every episode of the TV show “Strange Inheritance” they remind us “you can’t take it with you”.

Appraisal Foundation’s Resource Page for Personal Property Appraisers

The Appraisal Foundation sets the guidelines for all appraisers and publishes the Uniform Standards of Professional Appraisal Practice (USPAP). 

They have added a new page to their website with resources for consumers seeking personal property appraisals.   The following is available:

Resources For Personal Property Appraisers

  • Links to major appraisal societies with searchable databases of personal property appraisers (including the International Society of Appraisers, of which I am a member).
  • Brochure titled “The Personal Property Qualification Criteria”, effective Jan. 1, 2018.
  • Informational brochures describing the process of valuation for different types of property including Gems and Jewelry, Fine and Decorative Art (see below), Machinery and Equipment.

Valuation of Fine and Decorative Art

Users of appraisal services are encouraged to take advantage of these informative resources.

FBI Warns Dealers, Collectors About Terrorist Loot

On Aug. 26th the following announcement was made:

The FBI is alerting art collectors and dealers to be particularly careful trading Near Eastern antiquities, warning that artifacts plundered by terrorist organizations such as ISIL are entering the marketplace.

“We now have credible reports that U.S. persons have been offered cultural property that appears to have been removed from Syria and Iraq recently,” said Bonnie Magness-Gardiner, manager of the FBI’s Art Theft Program.

The Bureau is asking U.S. art and antiquities market leaders to spread the word that preventing illegally obtained artifacts from reaching the market helps stem the transfer of funds to terrorists.

In a single-page document titled ISIL Antiquities Trafficking, the FBI asks leaders in the field to disseminate the following message:

  • Please be cautious when purchasing items from this region. Keep in mind that antiquities from Iraq remain subject to Office of Foreign Assets Control sanctions under the Iraq Stabilization and Insurgency Sanctions Regulations (31 CFR part 576).
  • Purchasing an object looted and/or sold by the Islamic State may provide financial support to a terrorist organization and could be prosecuted under 18 USC 233A.
  • Robust due diligence is necessary when purchasing any Syrian or Iraqi antiquities or other cultural property in the U.S. or when purchasing elsewhere using U.S. funds.

In February, the United Nations Security Council unanimously passed Resolution 2199, which obligates member states to take steps to prevent terrorist groups in Iraq and Syria from receiving donations and from benefiting from trade in oil, antiquities, and hostages.

Before purchasing an item from suspected areas, ask questions and verify:

  • Which country did this come from?
  • Do you have the proper paperwork?
  • What is the provenance or history of the object’s ownership?

Check stolen object databases.  Proceed with caution.  For the full article and links to important resources:  ISIL and Antiquities Trafficking

7 Best Practices for Gifting Art to Museums

Appraisals for Charitable Deductions in Southern California

 

Investment News has a good article titled “The Art of Legacy Planning – 7 Best Practices for Gifting Art to Museums”.  In the article they state that high net worth individuals spend an average of 17% of their wealth on art and antiques, a passion investment.   Part of managing this investment is planning for the future of the collection.  One option is to donate to a non-profit organization such as a museum.  To maximize the benefit from a donation these steps are suggested:

1. Create a plan with your client, legal counsel and an independent art adviser that includes the donor’s close family or other heirs as appropriate. Including family and/or heirs in the process can help clarify a donor’s intent, prevent future conflict and actively aid in preserving the donor’s legacy. The plan should include having the artwork professionally appraised by an accredited appraiser with relevant experience in the type of artwork being donated. The appraisal cannot be made earlier than 60 days before the donation. In cases where donors are concerned about whether the IRS may accept a valuation, such as when there are fluctuating markets for similar artwork, an IRS Statement of Value may be obtained for artwork valued at $50,000 or more to provide the donor with certainty.

2. Try to place artwork in museums that have missions and continuing collection interests that strongly align with your clients’ intent and contents of their collection. Clients often will know of strong prospects. But clients focused and passionate about their collection may not recognize how their collection will best fit with a museum’s broader collection, its goals and its limitations in space and other resources.

3. Consider art museum policies and practices for donors and “deaccessioning” (removing items from museum holdings, usually to sell them). Mr. Welch pointed out that “many museums want to retain the ability to improve their collections through the acquisition of better examples. In such a case, a gifted artwork might be deaccessioned and the proceeds used to acquire a superior work. When that happens, the donor’s name of the original gift typically appears in the newly acquired work’s credit line.”

4. Consider museums that are members of monitoring or regulating associations. For example, the Association of Art Museum Directors requires a written policy for “deaccession principles, procedures and processes”. They also require that “funds received from the disposal of a deaccessioned work shall not be used for operations or capital expenses. Such funds, including any earnings and appreciation thereon, may be used only for the acquisition of works in a manner consistent with the museum’s policy on the use of restricted acquisition funds. In order to account properly for their use, AAMD recommends that such funds, including any earnings and appreciation, be tracked separate from other acquisition funds.”

5. Check the health of organizational finances by looking at Form 990 tax filings and/or charity rating agencies like Charity Navigator. One quick test is to look at total assets and total liabilities. Stable charities — like stable businesses — generally have assets exceeding liabilities.

6. Consider supporting museum operating costs as part of a donor’s commitment to their gift of artwork. Financially supporting the museum is another way of helping to preserve a donor’s legacy and a logical step in a client’s charitable, financial and tax planning.

7. As you draft an agreement for the gift, consider including a “statement of intent” that clearly and personally outlines the desires and expectations of the donor for their donation. Sharing this statement with family (and/or other heirs) and the beneficiary museum can help clarify intent, expectations and address any concerns of heirs or the museum. A statement of intent can also clarify donor intent for future generations and may help prevent legal challenges. Donors who bequeath their art collections to museums share an intimate part of their lives. Advisers can help provide guidance that will preserve and protect their client’s wishes, smooth the process and help establish their client’s legacy for the benefit of future generations.

Source: Investment News The first item on the list includes having your artwork professionally appraised by an accredited appraiser.  Credentials for qualified personal property appraisers are earned with their professional appraisal societies.

About the Author: Kathi Jablonsky, ISA CAPP is a certified appraiser of personal property designated in Antiques and Residential Contents with the International Society of Appraisers. She is based in Southern California and serves the San Diego and Palm Desert regions.

Events for Personal Property Appraisers and Collectors in California

Heath Ceramics Factory Tour, Sausalito
October 17th, 10:30 AM  – 11:30 AM
Sponsored by AAA
 
Photography and Sculpture: The Art Object in Reproduction, Los Angeles 
October 25th, 9:30 AM  – 5:00 PM
A Getty Research Institute and Clark Art Institute Symposium 
 
Appraisal Research Workshop, Los Angeles
Getty  Research Institute
December 2, 1:00 PM – 4:00 PM
Sponsored by AAA

Past event:

Foundation For Appraisal Education Seminar, Alameda
August 28-29
Sponsored by the FAE and Michaan’s Auctions
A fabulous opportunity to spend 2 days listening to lectures on a variety of subjects and meet appraisers from different associations. 
Kathi Jablonsky, ISA CAPP with Loredano Rosin sculpture
Kathi Jablonsky, ISA CAPP with Loredano Rosin sculpture
 
   

 

 

 

Deadline Approaches for Appraisal Scholarships

The Foundation for Appraisal Education offers annual scholarships for personal property appraisers to further their education.  For the 2014-2015 year they are offering two scholarships for new appraisers (with less than 2 years experience) and two for experienced appraisers.  The deadline for application is May 30, 2014 and is approaching quickly.   For applications, guidelines and procedures go to the FAE website and click on “scholarship”.

Foundation For Appraisal Education

 

 

Educational Opportunities for Appraisers in California

It’s important for professional personal property appraisers to take continuing education courses.  Not only to sharpen our skills but to acquire education credits with our professional appraisal associations.   The following events will take place  over the next few months in California:

Uniform Standards of Professional Appraisal Practice (USPAP) for personal property appraisers, 7-hour update class:

May 10, Seal Beach, College For Appraisers

Workshop on the Identification and Care of Architectural Drawings and Photo-reproductions: June 18-20, Stanford University Libraries

Foundation for Appraisal Education Seminar, August 27-29, hosted by Michaan’s Auction House in Alameda.  Featuring lectures on modern, Asian  and California art as well as wood I.D., snuff bottles and Tiffany glass.  Additional post-seminar tours available on August 30.  Foundation For Appraisal Education

 

Kathi Jablonsky, ISA CAPP is a full time personal property appraiser specializing in antiques and residential contents in San Diego and Palm Desert, California.