Tennessee residents who are going through the estate planning process may face a variety of challenges. One of them might be determining how to pass assets such as jewelry or artwork. These types of assets tend to be less liquid, and they also tend to be harder to value or keep track of. However, it is critical to come to a proper valuation whether an asset is to be transferred or sold.
Ideally, artwork or similar assets will be appraised by an independent professional who is certified by the The Appraisers Association of America or a similar group. Relying on the advice of a former owner or an online forum may make it harder to get accurate advice. If an item is given an incorrect value, it may result in unfavorable decisions related to how it is insured or dealt with as part of an overall estate plan.
Assets may be transferred directly to a beneficiary or placed in a trust. If an individual receives an item directly, he or she will receive a step-up in that item’s cost basis. This can be helpful if a future beneficiary chooses to sell an artwork or similar object. When determining who gets an asset, it is important for parents and grandparents to consider the sentimental value it may have.
No matter what types of assets a person has, it can be worthwhile to account for them during the estate planning process. This may make it easier to make sure that a home, car or funds in a bank account go to the proper beneficiaries. Individuals are advised to review their estate plan with their attorney on a regular basis. Doing so can make it easier to ensure that the documents still meet their needs.