Coin, BullionAnd Jewelry AppraisalsSouth Carolina

1Estates and Probate in South Carolina

If you are the personal representative of an estate, South Carolina law gives you 90 days after your appointment to prepare an inventory and appraisement. It must list the decedent's probate property and give each item's fair market value as of the date of death (S.C. Code § 62-3-706). The same law lets the personal representative hire a qualified and disinterested appraiser to help set those values.

Greenville County's handbook for personal representatives defines fair market value as the price at which property would change hands between a willing buyer and a willing seller, with neither forced to act and both having reasonable knowledge of the facts. Coin collections, currency, gold and silver often make up a meaningful part of an estate. Getting their value right helps keep heirs on good terms and the estate in good standing with the court.

2Federal Estate Tax Returns

For larger estates that file IRS Form 706, the stakes go up. The IRS instructions specifically list coin and stamp collections as items with collectible value. If any item or collection of similar items is worth more than $3,000, the return must include an appraisal by an expert under oath, along with a statement of the appraiser's qualifications (IRS Form 706 Instructions).

3Inherited Coins and Future Capital Gains

Even when no estate tax return is required, a date-of-death value matters. The IRS says the basis of inherited property is generally its fair market value on the date of death, whether or not an estate tax return is filed. That number becomes your starting point when you sell later. If you inherit a collection whose value is $10,000 and sell it when it's value is $20,000, you have capital gains. Therefore, selling as close to death where value has little movement is most advantageous.

It matters even more because the IRS taxes net capital gains on collectibles such as coins at a maximum 28% rate (IRS Topic 409). A well-documented date-of-death appraisal can help support a higher basis and reduce taxable gain when the coins are eventually sold. Talk to your tax professional about your specific situation.

Most people who inherit collections choose to sell close to the date of death because there is little to no capital gains. The value at death and the value a month later can usually be about the same. Exceptions may include volatile items such as gold and silver bullion, but in a month's time there is usually negligible value movement.

4Donating Coins to a Charity, Museum or School

If you donate coins, currency or bullion and claim a deduction of more than $5,000, you must complete Section B of IRS Form 8283. The IRS requires a qualified appraisal that is:

• Made, signed and dated by a qualified appraiser following the Uniform Standards of Professional Appraisal Practice (USPAP)
• Dated no earlier than 60 days before the donation and no later than the due date of the tax return
• Free of any fee based on a percentage of the appraised value

Federal regulations also bar certain people from serving as the appraiser, including the donor, the charity receiving the item, and anyone who was a party to the transaction when the donor acquired the property. That is exactly why we ask how you got the coins and what the appraisal is for before we take on a written appraisal.

5Insurance Coverage

Many collectors are shocked to learn how little a standard homeowners policy covers. A typical special limit is only $200 for money, bank notes, bullion, gold and silver. For coin collections, adding a higher-limit endorsement or buying a separate personal articles "floater" policy is strongly recommended. Limits vary by insurer and state, so check your own policy.

If you require coin, bullion or jewelry insurance, we can assist you with supplying the names of qualified insurers who specialize in such policies.

To schedule a collection, insurers usually want a written appraisal that lists each coin or group of coins and its value. Insurance appraisals often use replacement value -- meaning what it would cost to buy the item again at retail. That number is usually higher than what a dealer would pay you.

6Divorce and Dividing Property

When marital property is divided, the family court must identify and value it before dividing it fairly (South Carolina Supreme Court). A neutral, written appraisal of a coin collection or a stack of gold and silver helps prevent disputes over what it is really worth.