I need to appraise a collection for a family member

I need to appraise a collection of a deceased family member.

What do you suggest for price determination? Gray sheet? If so, where do I get one? I checked Barnes & Noble but didn't see one. I did see a monthly coin price magazine. Is that the same caliber as the gray sheet, or is it something less accurate?

Once I catalogue and write down the values, is there a discount percentage I am suppose to apply? I mean, is the price given wholesale or retail?

Thanks.

 

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CDN: Greysheet

 

Problem with the grey sheet is it changes weekly, so unless they plan to sell the same week you're just as well to get the monthly price guide you saw.
Guy~

 

For appraisal purposes, the price at time of death is what's probably required, so I wouldn't worry about greysheet changing weekly.

 

You can try numismedia.com...........or use Redbook and deduct 20% from their prices listed.

 

In my observations the greysheet prices do not change much from month to month.

 

I am sorry for your loss, it is good of you to help settle the estate.

I believe you can order sample copies of grey sheet on line.

 

Another option is to take the collection to a local dealer. If you have one that you already have a relationship with, and you trust him, see if he'll do an appraisal for you. You may even get an offer.

 

Thanks. It's an interesting situation because according to the will, personal property goes to the spouse, my grandmother. The lawyer did ask for a date of death valuation. The children have expressed an interest in selling the collection presumably to raise money, and since I am the one coin collector in the family, they have asked me to assist, and if interested, buy.

I have already reached out to a professional coin appraisers in my club that I will likely get involved so everything is impartial, but I wanted to give it a shot myself first just so I can test my skills. Once we have a value, and depending if the collection is something I want, I will make an offer. I am a little more well off than my relatives, so I may just be buying it to help them out and to keep it for sentimental value. We'll see.

Any suggestions would be appreciated. Thanks.

 

For what you are doing you need a full retail price. The spouse will get a stepped up basis on half of the value of the collection. This means she will pay less taxes if she sells. You really need to get with a CPA in her state to understand how this all works. If this is a large collection and has a lot of value it's important to get it right the first time.

 

You are correct about the stepped up basis.

 

Id is right! The value of certain assets are computed on a stepped-up basis at the date of death. For estate purposes, you'd want to use the full retail value of the collection so that when it comes time to sell, taxes would be minimized for the heir. You shouldn't use Greysheet prices to establish the value for tax purposes. For example, suppose that the Greysheet value is determined to be $10,000 at the date of death, and you sell the collection for $20,000. Estate taxes may be due on $10,000. However, if it was determined that the collection had a full retail value of $25,000, and it is sold for $20,000, then no taxes would be owed.

It would be advisable to contact someone knowledgeable in estate tax law in the state where your grandmother lives.

I'm sorry for your loss.

Chris

 

Personally, I wouldn't want to take the chance that some overzealous IRS auditor wouldn't accept simply adding 20-25% to the Greysheet values. I'd rather use Red Book, Numismedia, PCGS or some other pricing guide just to cover myself.

Chris

 

You may want to talk to the lawyer, but for estate purpose in 2010, there is no step up since there is no federal "death" tax this year. If the death happened prior to 2010 then there would still be a step up. There is an adjusment basis that comes into play, and the estate lawyer should be able to explain this.


here is a link to a website that explains it (http://registeredrep.com/mag/finance_end_steppedup_basis/) if this violates any terms please feel free to delete the link.

 

Treat the collection as ordinary cash and report it at face value. Be sure to sell it before January 1, 2012.

JUST KIDDING !!!

 

Thanks, Dog! I wasn't aware of the change for 2010. Unfortunately, your link came to a blank page, but I pulled this FAQ from the IRS. One thing I noted is that the estate tax was rescinded only for 2010, and is reinstated for 2011. So, if anyone is planning on dying, make sure you do it on or before December 31, 2010.

Chris
http://www.irs.gov/businesses/small/article/0,,id=224519,00.html

 

I just went through everything and I am going to have to get a professional involved. The coins fill a foot locker, and there is not much order to the collection. If I had to identify what he collected, I'd say penny rolls, nickels, and proof sets. It seemed more like coin hoarding than coin collecting.