Article on Fair Market Value of Art for Estate Tax Purposes

Diana Wierbicki & Amanda A. Rottermund recently published an Article entitled, Art Auctions and Fair Market Value for Estate Tax Purposes, 30 Prob. & Prop., no. 5, 53 (2016). Provided below is a summary of the Article:

Public auction sale prices often are reliable sources for calculating the fair market value of estate art collections, but at times an artwork’s unique quality and the complexity of the art market call for a more nuanced analysis of fair market value. Such analysis takes into account additional factors, such as the strength of the art market on the date of death compared to the strength of the market on the date of sale and the structure of a public auction sale. This article explores how these additional factors make it difficult to pinpoint precise date of death fair market values for art.