Is artwork in a probate estate valued at what the family paid for it?
No. The governing standard is fair market value as of the date of death, or the elected alternate valuation date, reflecting the market where the art is most commonly sold to the public, usually auction. Purchase price, retail asking prices, and sentimental value are all legally beside the point.
Can the executor use the insurance schedule for the estate's art inventory?
No. Insurance schedules carry replacement values, which run higher than fair market value and can materially overstate estate tax liability while inviting IRS adjustment. Probate inventories and Form 706 need market-based values developed for the estate context, not coverage figures.
What supporting detail do courts and the IRS expect for estate artwork?
Condition, medium, size, marks and signatures, provenance, authenticity information, and comparable sales from the relevant market. Low-value household items can be grouped room by room, but articles with artistic value over $3,000, or collections over $10,000, require individual expert appraisal under oath, and an artist's unsold inventory must be appraised as well.
Do state probate rules change which artwork must be appraised?
Yes. Some states apply probate thresholds to the gross estate and others to the net estate, which changes whether particular art and collectibles need formal appraisal or can be reasonably estimated. There is no single national probate rule for art; the estate's filing state controls, while federal estate tax rules apply on top for taxable estates.