Appraisal · Estates & Donation

Estate & Donation
Appraisal in Ontario

Fair market value reports for executors, estate trustees, families, and their counsel, prepared for probate, the final return, distribution among beneficiaries, and charitable donation. Written under ISA standards and USPAP methodology, from Toronto, with remote examination available across Canada.

For Executors & Estate Trustees

Valuing art for an estate.

When a collection passes to an estate, the owner's capital property, art included, is treated as disposed of immediately before death at fair market value, and any gain is reported on the final return. Transfers to a surviving spouse or common-law partner can defer this. Art is listed personal property: cost and proceeds are each treated as at least $1,000, which spares many modest pieces from tax entirely, while significant works need real valuation evidence.

The same values carry into Ontario probate. The Estate Administration Tax is calculated on the fair market value of estate assets at death above the first $50,000, with art among the goods, and the Estate Information Return is due within 180 days of the estate certificate. A date-of-death appraisal gives the executor or estate trustee one documented set of values that serves the final return, the probate filing, and equitable distribution among beneficiaries.

Donation & the CRA

Appraisals for a charitable gift.

A charitable gift of art is receipted at fair market value, and CRA guidance anticipates a professional appraisal for works of $1,000 or more, by an appraiser who is accredited, independent of both donor and recipient, and who follows USPAP or the standards of their profession. One planning point is worth knowing early: art acquired less than three years before a lifetime gift, or within ten years where a main reason for acquiring it was to give it away, may be receipted at the lesser of value and cost. Gifts made as a consequence of death are carved out of that rule, which changes the arithmetic of donating from an estate.

For significant works, cultural property certification goes further. Where the Canadian Cultural Property Export Review Board certifies an object and it is donated to a designated institution, no capital gain arises and the claim is not limited to a percentage of income. The institution applies on the donor’s behalf; the Board determines the value and issues the income tax certificate. I prepare the qualified monetary appraisals these applications rest on; one is required under $50,000, and two at $50,000 and above.

Working With Counsel

On instruction, in confidence.

Most estate and donation work arrives through lawyers, accountants, and trust officers. The intended use is defined at instruction; the report is written so it can be relied on in the filing it serves, with value type, effective date, and methodology documented throughout. Engagements are confidential under USPAP, and I hold no interest in any work I appraise.

None of this is tax or legal advice; tax treatment is a matter for your accountant or counsel. The report gives them the number they can rely on.

Single-work reports from CAD $400; collections are tiered per item and quoted in writing after a complimentary scoping call. Fees are flat or hourly, never a percentage of appraised value. Process and credentials are described on the main appraisal page.

Common questions.

Does the CRA require an appraisal for donated art?

CRA guidance says a professional appraisal will probably not be required where the fair market value is under $1,000. At $1,000 or more, one is expected. The CRA encourages appraisers who are accredited, independent of both donor and recipient, and who follow the Uniform Standards of Professional Appraisal Practice or the standards of their profession; reports from this practice are prepared to the USPAP standard.

How is art valued when someone passes away in Ontario?

Capital property, including art, is treated as disposed of immediately before death at fair market value, with any gain reported on the final return; transfers to a surviving spouse or common-law partner can defer this. Art is listed personal property, so cost and proceeds are each treated as at least $1,000, and modest pieces often produce no taxable gain at all. The same fair market values feed Ontario’s Estate Administration Tax. A date-of-death appraisal documents these values in one report.

What is certified cultural property?

A donation route for significant works. Where the Canadian Cultural Property Export Review Board certifies an object of outstanding significance and it goes to a designated institution, no capital gain arises and the claim is not limited to a percentage of income. The institution applies on the donor’s behalf; the Board determines the value and issues the tax certificate. Donations under $50,000 call for one qualified monetary appraisal, which this practice prepares, and larger ones call for two.

What is the difference between fair market value and replacement value?

Fair market value is what a willing buyer would pay a willing seller, and it is the basis for estate, probate, division, and donation. Retail replacement value is what it would cost to replace the work, and it is the basis for insurance. They can differ substantially for the same object, which is why every report states its value type and intended use on the first page.

Do you do date-of-death valuations?

Yes. Fair market value as at the date of death, for the final return, probate filings, and distribution among beneficiaries. Retrospective valuation is ordinary appraisal work: the market evidence is read as of the effective date, and the report says so.

How do you work with estate lawyers and accountants?

Usually on instruction: counsel or the accountant defines the intended use, I examine and research, and the report is written to be relied on in their filings, with value type, effective date, and methodology documented throughout. Engagements are confidential under USPAP.
Enquiry

Begin with a conversation.

Initial consultations are without charge or obligation, whether for executors scoping a collection or counsel scoping an instruction.

Request an estate or donation consultation →