Glossary

An appraisal that meets IRS requirements under Section 170 and the Uniform Standards of Professional Appraisal Practice (USPAP). Required for charitable donations of property valued over $5,000 and for estate tax filings involving tangible personal property.

The price at which property would change hands between a willing buyer and a willing seller, neither being under compulsion and both having reasonable knowledge of relevant facts. The standard used by the IRS for estate and gift tax valuations.

The cost to replace an item with one of similar kind, quality, and condition in the appropriate marketplace. Used primarily for insurance scheduling. Typically higher than fair market value.

Physical assets other than real estate: art, jewelry, collectibles, antiques, furniture, wine, vehicles, and similar items. In estate law, tangible personal property often requires separate inventorying, appraisal, and distribution from financial and real property assets.

The documented history of ownership and custody of an object from its creation to the present. A complete provenance record supports authenticity, establishes legal title, and strengthens valuations.

A detailed written and photographic record of an object's physical state at a specific point in time. Used to document condition before and after loans, transport, or storage, and to support insurance claims.

The Uniform Standards of Professional Appraisal Practice, published by the Appraisal Standards Board of The Appraisal Foundation. USPAP sets the ethical and performance standards for appraisals in the United States. IRS and most courts require USPAP-compliant appraisals for tangible personal property.

The systems, policies, and practices that ensure a collection is inventoried, valued, insured, and documented to a fiduciary standard. Governance transforms a collection from an informal holding into a managed asset class.

A detailed list of individually insured items attached to an insurance policy. Each item is described, valued, and covered for a specific amount. Scheduling provides broader coverage than blanket policies for high-value pieces.

A specialized insurance class covering high-value physical assets including fine art, jewelry, precious metals, wine, and other collectibles. Specie policies are typically underwritten by specialist markets such as Lloyd's of London.

An insurance arrangement that covers a group of items under a single limit rather than scheduling each piece individually. Simpler to administer but offers less protection for high-value items, which may exceed the per-item sublimit.

A complete accounting of all assets owned by a decedent at the time of death. For tangible personal property, this includes description, location, condition, and value of each item. Required for probate, estate tax filing, and equitable distribution among beneficiaries.

A panel of art experts convened by the IRS to review and evaluate appraisals of art and collectibles submitted with tax returns. The panel reviews items valued at $50,000 or more and can adjust reported values.

A tax provision that resets the cost basis of inherited property to its fair market value at the date of death. For appreciated collectibles, the step-up eliminates capital gains tax on appreciation that occurred during the decedent's lifetime.

The division of property in a manner that is fair, though not necessarily equal. In estates and divorces involving collections, equitable distribution requires defensible valuations and a transparent process for allocating items among parties.

A documented record of every person or entity that has had physical possession of an object. In legal proceedings, an unbroken chain of custody supports the integrity of evidence and the authenticity of valuations.

A Request for Quotation issued to qualified appraisers to bid on a valuation engagement. A well-structured RFQ specifies the purpose of the appraisal, the items to be valued, required credentials, timeline, and deliverable format. The goal is best execution: highest expertise, fastest turnaround, and best price through competitive sourcing.

The legal obligation of trustees, executors, and advisors to manage collection assets with the same care, skill, and diligence as any other asset class. Includes maintaining adequate insurance, current valuations, and proper documentation.

The three principal appraisal credentialing organizations in the United States. AAA (Appraisers Association of America), ASA (American Society of Appraisers), and ISA (International Society of Appraisers) each require demonstrated expertise, testing, and adherence to USPAP.

A chronological record of all actions taken on a collection record: valuations, movements, condition changes, ownership transfers, and administrative decisions. An audit trail provides the evidentiary basis for defensible governance.

The structured process of dividing tangible personal property among beneficiaries or parties in an estate settlement, divorce, or business dissolution. Requires cataloging, valuation, preference collection, and documented allocation.

A qualified appraisal required by the IRS when a taxpayer donates property valued at more than $5,000. The appraisal must be conducted by a qualified appraiser no earlier than 60 days before the donation and no later than the tax filing deadline.

A complete inventory with current valuations, photographs, and condition documentation sufficient to support an insurance application or renewal. Eliminates the administrative bottleneck that delays coverage decisions.

A document referenced in a will that lists specific items of tangible personal property and their intended recipients. Allows the testator to update distributions without amending the will itself. Must meet state-specific legal requirements to be enforceable.

A method for collecting beneficiary preferences during asset separation. Participants express priorities through defined rounds with clear rules, conflict detection, and documented outcomes. Replaces informal negotiations with a transparent, auditable process.