You have accumulated a lifetime worth of stuff. That stuff could include jewelry, furniture, knick-knacks, collectibles and the like. You may even know what is valuable and what is not. If something happened to you and you weren’t around to tell somebody what was valuable and what wasn’t, would your loved ones know?
I know one recent case in which Mom’s house was being dismantled. The family put a rather ugly necklace with a huge stone out in the garage sale for a dollar. The necklace didn’t sell, so they took it to a local jeweler to identify the stone. Although the stone wasn’t particularly valuable, the scrap value of the gold was worth over $2,000. It turns out that the necklace was a period 60’s piece of 18kt gold in its original box from a European fine jeweler that was known as the Tiffany’s of Europe.
I know another situation where a woman purchased three pairs of earrings at a garage sale for fifty cents a pair. Although two of the pairs were each worth about fifty cents, the third pair was a couple of one-third carat diamond stud earrings of fairly high quality. Not bad for fifty cents. Do you want this to happen to you and your stuff?
Just because that old ring you received from aunt Bessie is all tarnished and dull, doesn’t mean that it isn’t gold or the stones aren’t real. Gold doesn’t tarnish, however the alloys that may be in the gold, such as copper, can if it sits untouched long enough. You rarely find jewelry in 24kt or pure gold because it is too soft. Most gold jewelry is alloyed with harder metals to make it more durable. So you can have a tarnished ring that could be 10kt, 14kt or even 18kt gold.
Also few people think to have their jewelry cleaned before it is shoved away in the back of the jewelry box. A build-up of soap film and body lotion can make even the most beautiful gems and jewelry, dull and ugly. So if Mom inherited Aunt Bessie’s ring, but did not clean it before putting in her jewelry box for 20 years before you received it, it may not look its potential best. You may think it’s junk – but it’s not.
A client of mine not too long ago, received a painting from her aunt’s estate. She liked it and wanted to keep it, so she decided to have it appraised. The painting turned out to be by an early American artist and was worth almost $10,000.
My grandfather left a pre-World War II Slovakian teapot which was black with tarnish and dirt. The maker’s marks were in German and unrecognizable. When the teapot was sent in to the experts for examination and testing, it was found to be solid sterling silver, much to my father’s surprise.
What about your antique furniture? The values on some of these can surprise you. What may be just old furniture to some people, may be valuable antiques to others. Do you want it sold after you are gone or do you want to pass it on to a family member? Is there any sentimental value?
You may have collections of stuff. Sometimes that stuff may not seem particularly valuable individually, but when added together, could be very, very valuable. I had client who had a coin collection that was worth over $50,000. I had another client who had collected Coca Cola memorabilia and invested more than $60,000 in the collection.
You really don’t plan on selling any of your jewelry or other stuff. You also may not even have listed them separately on your homeowners insurance. Consequently, they never have been appraised. You never had the need, you thought. Why would you pay to have it appraised? Well the reason is: if you don’t and you also don’t let your loved ones know what is valuable and what is not, what you have spent a lifetime collecting may end up in the garage sale.
If you are going to get your jewelry appraised, make sure it is appraised by a reputable certified gemologist who has experience and has been trained by the Gemological Institute of America. The certification should be by a national qualifying agency such as the American Gem Society, which requires annual examinations and re-certifications and adherence to a code of ethics.
Similarly with your antiques and collectibles. The appraiser should be trained and certified by a national qualifying agency, such as the Certified Appraisers Guild of America. This certification should also require annual re-certifications and adherence to a code of ethics. The appraiser should be experienced and also be familiar with the Internal Revenue Service and court requirements.
Make a list of your stuff and its values. If it has any sentimental value, note it, document it and have your stuff appraised. And most importantly, let your loved ones know what you have and where they can find the lists and appraisals. This way, your stuff doesn’t end up in a garage sale when your loved ones are downsizing your home, if you move into an assisted living facility or after you are gone. Don’t let your loved ones sell your stuff by guess and by golly.
By: Matthew M. Wallace CPA, JD
Published edited January 8, 2012 in The Times Herald newspaper, Port Huron, Michigan as: Buried treasures Don’t leave heirs guessing about value of your stuff