USPAP COURSE BOOK

USPAP Course Materials & Supplementary HandoutsAs of February 2012Table of Contents

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BACKGROUND INFORMATION USPAP

CITY: ______________________________ DATE: _____________________________

PLEASE NOTE THAT UPON SUCCESSFUL COMPLETION OF THIS USPAP COURSE, YOUR CERTIFICATE WILL BE SENT TO THE FOLLOWING ADDRESS.

NAME _________________________________________________________________________________________ ADDRESS ______________________________________________________________________________________ CITY _____________________________________________ STATE ________________ ZIP __________________ HOME PHONE ________________________________ BUSINESS PHONE ________________________________ OTHER PHONE ___________________ EMAIL (WRITE NEATLY) ________________________________________ PRESENT OCCUPATION _________________________________________________________________________ HIGHEST DEGREE OF EDUCATION: SPECIFY FIELD _______________________________________________ COMPUTER EXPERTISE LEVEL (circle) Professional High Average Minimal None WHEN DID YOU LAST TAKE USPAP? ______________ WHAT IS YOUR BACKGROUND IN APPRAISING? WHAT IS YOUR AREA OF SPECIALIZATION? ____ Generalist _____ Photography ____ Fine Arts _____ Tribal ____ Decorative Arts _____ Oriental ____ Jewelry _____ Judaica ____ Collectibles _____ Textiles ____ Paintings _____ Prints ____ Other ______________________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF AAA? ________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF ASA? ________ HOW MANY YEARS HAVE YOU BEEN A MEMBER OF ISA? ________ DO YOU WANT TO BECOME A MEMBER OF AAA? ___________ ARE YOU A MEMBER OF OTHER PROFESSIONAL ART, ANTIQUE, DEALER, OR APPRAISAL ASSOCIATIONS? PLEASE SPECIFY. WHAT IS YOUR OBJECTIVE IN TAKING THIS COURSE (check as many as apply and be as specific as possible): ____ Exploring career alternatives ____ Want to update appraisal skills ____ Want to establish an appraisal business part-time ____ Want to establish an appraisal business full-time ____ Want to appraise as an adjunct profession ____ Want to be a dealer ____ Want to expand skills to be applied in another field (insurance, law, accounting, etc.) ____ Other: _______________________

L O N G C ASE ST UD Y 1 Connie Sewer, an Art History major in college and an NYU appraisal studies student, attended an onsite catalogued house auction for a large estate in Grosse Point, Michigan in 2007. The auction was conducted by Hugh Byatt Auctions, an established Chicago auction house. At the preview she saw a 19th century genre painting, signed Zampighi (Eugenio Zampighi, Italian genre painter, 1859-1944). Connie thought it rather sweet and investigated the work. She was told by an employee of the auction house that the painting had been in the family for many years. The deceased was 95 years old when he died. He had been ill for at least 15 years and done his collecting many years prior to his illness. She was also told that a local "independent appraiser" was available for consultation. She should check the auction catalogue for the times he was scheduled to be onsite. Connie checked the catalogue and noted that the appraiser, Sly Himes, a senior member of ASA and a member of the AAA was scheduled to be at the house all afternoon. She returned in an hour and met with the appraiser. Himes provided her with a photocopied page of Zampighi's sales results from Hislops’ Art Sales Index. The auction records indicated that some of the Zampighi works of comparable size had sold in the $20,000-40,000 range. Himes indicated that the painting was in pristine condition and had never been retouched. He felt the painting may be an unfinished work, possibly a study for a larger mural. The painting was estimated at $15,000-25,000 in the catalogue. Himes told Connie that he felt the decedent's family would take a lower bid because he had heard that they wanted to sell everything quickly. Himes also offered to meet with Connie after the sale and to write an appraisal for this painting at no charge. Connie was the under bidder at $7,500; she lost the painting to a phone bid. She returned home, momentarily disappointed, but quickly forgot about the sale. Three days later she received a phone call from Hugh Byatt Auctions. They told her that the successful bidder failed to pick up the painting and that it could be hers for her final bid - $7,500 plus the usual premium and tax. After paying for the painting, she returned home to examine it properly with her black light. She saw several areas of inpainting and noticed that the faces of the young couple were rather amateurishly executed and that the background was incomplete. The signature also looked wrong, but she could live with it. She felt that maybe it was a work from Zampighi's younger days and as Himes mentioned, it was probably an unfinished study. Connie found the business card for the appraiser. She noted that the card stated that he was an appraiser as well as a dealer of paintings. She was only interested in having the painting appraised for her insurance company. She tried to get the appraisal Himes generously agreed to provide, however, he insisted that they make an appointment for him to come to her house to conduct the appraisal. Connie was suspicious and did not allow it. She just wanted the

appraisal. Six months later, after several phone calls, Himes sent Connie an appraisal on an [old, now obsolete] AAA-approved appraisal form. Meantime, Connie had taken the summer appraisal courses at NYU and noted that the appraisal was laden with typos and lacked many required facts including no mention of USPAP. Additionally, no CV was included, although Himes attached a copy of a local newspaper article featuring him as an appraiser. Connie questioned the appraisal since Himes had put a value of $60,000 on a painting for which she had only paid $7,500. He explained that “of course” the figure was much higher than the purchase price -- she got the painting "at a steal". He arrived at the $60,000 by doubling the high Hugh Byatt auction estimate and adding a slight inflationary factor. Connie asked to see his research. He told her that if she required research he would have to charge her for the appraisal, however, if she was interested in selling, he would refund her fee if the painting was sold. Connie did not like what she had heard - her mother always said, “You get what you pay for!” She agreed to pay for the research. Another three months elapsed when she finally received a print out from “Ask Art” giving the artist’s biography and a list of four paintings which sold since 1994. None of these paintings were remotely similar in subject or size to her painting. He also sent her an invoice for $3,000 (5% of the value of the painting). Independently, Connie continued her research. On her next trip to New York, she brought the painting to Sotheby's and Christie's for their input. Each auction house indicated that it was a "lovely painting" in the manner of Zampighi, but not for them. Connie contacted several Madison Avenue Galleries who sold similar 19th century genre paintings. No one seemed to be interested in her "$60,000" painting. However, one gallery told her that they thought they remembered seeing the painting in a sale at Skinner's or Sloan's in the early 2000s. Connie next contacted Skinner's and Sloan's. The painting had actually passed through both auction houses. It was in a 2002 sale at Sloan's and did not sell. In 2003 it appeared at a Skinner sale where she was told that it sold privately after the sale. In both catalogues, the auction houses had indicated that it was "in the manner of Zampighi". The estimates were $1,000-1,500 (Sloan's) and $800-1,000 (Skinner). Although Connie still liked the painting, she certainly learned her lesson! Does she have any recourse? Who, if anyone, was in violation of USPAP in this case? Explain.

LONG CASE STUDY 2 Mr. Haney is the owner of a small, but respected antiques/collectible shop in New Market, Minnesota. New Market is the county seat for a large farming community in Southern Minnesota. Recently the area has become very popular with rich, young Minneapolitans who enjoy antiquing. Many old farm houses and estates have been bought by these "big city" yuppies as country and weekend homes. Haney is the only AAA appraiser in 150 miles. He has been a member of the AAA since 1965 when just starting out in the antiques business. Although his appraisal practice has never been a great source of revenue, it has led to a constant source of new merchandise. Haney follows the new AAA guidelines that he learned at the last AAA conference he attended in 1995. He always states that at the time of the appraisal he has no interest in the items appraised (although he knows that eventually they will come to him since he is the only "game" in town). In May 2005, Mr. Espender, one of the wealthy "yuppie" types that had moved into town was killed in a car accident, leaving a very pretty widow and three young children. Haney had known the family for the five years that they had lived in New Market. They lived down the road from his shop and he had sold them many of the antiques in their home. He was quite fond of the Espender family and his wife frequently babysat for the Espender children. Haney was retained to conduct the appraisal for the estate. He was told that the estate had to be liquidated quickly as the widow was left penniless. The attorney, Haney's first cousin, assured him that there were no tax consequences since there was a surviving spouse. The appraisal was done for capital gains purposes only. The attorney asked Haney if he wouldn't mind waiting to get paid for the appraisal until after some of the items were sold. He explained that the widow could barely cover the funeral expenses. Haney agreed - since he sold the family many of the items in the estate, he knew that the estate included many valuable and salable items. Haney had not realized the extent of the collecting the Espender family had done over the past few years. When he arrived onsite he discovered that the rambling farmhouse was filled with not only the country pieces that he had sold the family, but also some signed 19th century portraits and genre scenes, various American quilts and needlepoints, Chinese Export porcelain, silver, glass, furniture, and books. To his relief he was told that Mrs. Espender's jewelry was not part of the estate and he would not have to appraise it. Haney called his wife to help with the appraisal. They alternated rooms. After two 10 hour days they finished the onsite examination. That weekend they went to the wedding of a friend's daughter. At the wedding they ran into an old acquaintance who is an antiques dealer in New York. This friend asked Haney if he ever sees old needlepoints for sale. Haney indicated that he is working on an appraisal of some at the moment. They will be priced in the $200-500 range. He said he could probably arrange a deal with the estate since he knew that they desperately needed money. He asked his friend to call him on Monday. Monday at the Chamber of Commerce meeting, Haney saw his cousin, the estate attorney. Haney asked the attorney when he could have access to the inventory. He had buyers for it immediately. The attorney indicated that he had to speak with the widow, but did not predict a problem. The

attorney suggested that Haney use photographs to begin to sell the items if he could not immediately move them into his antiques shop. The attorney also suggested that Mrs. Haney could post smaller items on ebay if Haney did not have the time. Meantime, Mrs. Haney was diligently typing the appraisal. About a week later she finished the report and faxed a draft of the report to the attorney to see if he wanted to change anything. During that time, Haney had returned to the Espender home to take photographs since he knew many of the pieces he could sell for the family quickly because he had buyers all over the county and he knew the estate needed the money quickly. Haney bought several items for his own collection in order to help out the widow. His friend from New York bought ten of the twelve needlepoints for $200 each. The attorney returned the draft after he made a few changes. Haney signed the report and sent the official copy to the widow. He was pleased that it was finally completed because now he could post the pages from his report with the photos he had been sending. Haney continued to sell articles from the estate. Some he had in on consignment in his shop; others he kept at the widow's home until they were sold; some of the smaller items he posted on ebay for an easy sale. He sold several paintings and some candlesticks on ebay. Within two weeks, Haney had raised more than $40,000 for the estate and the widow was delighted. About eight months later, friends of the widow noticed that a portrait similar to a portrait they remembered at the Espender house was offered for sale at Susanin's in Chicago. This painting was reportedly by John Singleton Copley. The estimate was $100,000-125,000. They asked the widow if she knew anything about it. Mrs. Espender saw a photograph of the painting and realized that it was a painting that Haney had sold shortly after the death of her husband. She recalled that Haney had appraised the painting for $2,500 with the "off-the record" comment indicating that he thought the painting was probably worth much less, but did not want the widow to have to pay additional capital gains on a potential sale. Eventually she received $1,200 for the painting after Haney had taken his commission. She did not have to pay capital gains and she was pleased at the time. Mrs. Espender started to investigate other pieces that were sold. She found five of her needlepoints in a sale at Sotheby's in New York. One was sold for $8,000, others were in the $4-6000 range. She was paid $125 for each of them. She saw several of her quilts in a downtown Minneapolis folk art gallery with prices of $4-12,000. She was paid $100 per quilt by Haney. Needless to say, Mrs. Espender was livid. She called the Better Business Bureau and the AAA. She filed ethical complaints against Haney. To this day, Haney does not understand what he did wrong --- He was just trying to help the widow. Was Haney in violation of USPAP? Explain.

LONG CASE STUDY 3 Eve Nigh received a MA in Art History from Smith College in Northampton in 2006. After many months of looking for artsrelated employment in the Western Massachusetts area, she found a job working for an antiques shop, called Le Tab Blue, which specialized in antique country dining furniture in Great Barrington, Massachusetts. The shop's clientele was primarily weekenders and vacationers from Boston and New York. Frequently these customers ask for appraisals on their recent purchases. Eve seeing an opportunity, taught herself to do appraisals and started offering independent appraisals to those who inquired. Her appraisal practice became a very lucrative sideline business to her job in the antiques shop. Not only did she do appraisals for Le Tab Blue, she was also hired by all of the galleries in town to do their clients' appraisals. She enjoyed the work because she was able to see a mixture of art, antiques, jewelry, and musical instruments. She even appraised a Silver Ghost Rolls Royce once! The work was very easy since the dealers usually supplied her with descriptions and purchase prices of the items she appraised. She wrote the appraisals according to the generic format she copied from her parents' 1985 insurance appraisal and changed the descriptive facts to fit the items. All was fine until in May 2008 when a Mrs. Ann Teak, a 2007 client whom Eve barely remembered, called to request a copy of the full appraisal to be sent to her insurance company. The client could not find her copy of the appraisal and stated that the insurance company requested it for a claim she was filing. Apparently, the client's son had a party while she was out of town and the table had several cigarette burns on the top. The client was filing an insurance claim for the restoration. Eve could not recall the specific table. She had disposed of her 2007 records at the end of 2008 when she moved. She was hoping that perhaps she could find the dealer who originally sold the client the table and she could reconstruct the appraisal. Eve explained the situation to all of her dealer friends in town, asking them to check their records for any sales to a Mrs. Teak from about 2007. Many of the dealers knew Mrs. Teak, but no one had a record of the sale. She went back to Mrs. Teak and told her that she could not help her because she was unable to find a record of the appraisal.

Meantime, the insurance company had conducted an independent appraisal for the table. Their appraiser had indicated that the table was constructed of a 19th century maple base and a contemporary maplestained pine top. The insurance company's appraiser felt that the table's total replacement value was $1,000. The cost to replace the top was $250 with no loss of value. The client was upset since she had recalled paying $6,500 for a “Federal” maple table. She went through her records and found a copy of the invoice for the table and Eve's appraisal. Mrs. Teak did pay $6,500 plus tax and shipping for the table in 2001. Eve had appraised the table for $9,500. Mrs. Teak would not accept the insurance company's offer. It was decided that she would go to litigation. Eve's files, including her comparables were subpoenaed. Eve stated that she had disposed of her 2007 files at the end of 2008. The attorney, Justice Forell, asked Eve to reconstruct an appraisal to the best of her ability. Mrs. Teak sent Eve a copy of the original sale's receipt to assist Eve in her reconstruction of the report. The dealer, Tom Crook, had closed shop about six months ago and no record of a forwarding address existed. Eve's boss, a specialist in antique tables recalled that Crook frequently sold assembled tables to unknowing clients. No respected antiques dealer in Great Barrington wanted to associate with Crook. Eventually the word got around and his business ultimately suffered, hence his disappearance. Eve now remembered the appraisal. It was the only appraisal she wrote for Crook. She remembered not liking to work with him. He insisted that she do the appraisal from a photograph and the information he supplied. She never actually saw the table. Crook had told Eve to put $9,500 on the table. At the time she thought that was too high, but if that's what the client had paid for it it must be a fair price. She did no further research as to comparables. Since the table was now in Boston, Eve suggested that the client get a second opinion from an appraiser in the Boston area. Eve offered to pay for the appraisal. Mrs. Teak got a second opinion which confirmed the insurance company's findings. Mrs. Teak's attorney, Justice Forell, felt that Eve's appraisal would not hold up in court. Forell recommended that Mrs. Teak accept the insurance company's offer of $250 and take action against Eve. Mrs. Teak accepted the insurance company's offer and proceeded to sue Eve for the difference in the value between her appraisal and the second opinions, plus court costs, plus pain and suffering.

The case was settled out of court. Was Eve in violation of USPAP? Explain.

APPRAISERS ASSOCIATION OF AMERICA, INC.

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE, 2010

SHORT CASE STUDIES 1. One of your clients is "just interested in knowing" what a particular painting is

worth. The client would like you to write an abbreviated report. You suspect, however, that the client will attempt to sell the painting if the appraisal is high and will use your appraisal to justify the asking price. Under USPAP how should this be handled?

2. Your client has suffered a catastrophic loss in a fire and must submit an appraisal to be reimbursed by the insurance carrier. After having contracted to do the job you arrive on the scene to discover that the client has hardly any documentation about the objects which have been lost, which is entirely different than the scenario presented to you on the phone. Under USPAP how should this be handled?

3. You have contracted to write a donation appraisal for works of art which have been donated to museum. The museum staff is being very difficult and will not allow you to see the objects until after the appraisal must be filed with the client's income tax. Under USPAP how should you handle this situation?

4. You have been asked to appraise an artist's estate for estate tax purposes. After completing a preliminary inventory you become convinced that blockage discount should be applied. However, you have never written this type of appraisal before and not one of your colleagues has either. Under USPAP how should this be handled?

5. After researching a number of Renaissance paintings in a client's collection for an insurance appraisal, you are convinced that they have been stolen from a major museum. Do you have a fiduciary responsibility under USPAP? How should this situation be handled when writing your appraisal?

6. You have been hired to conduct an estate appraisal for a sizable collection of art. An unsigned Impressionist painting is included in the collection. You have been told by the dealer who sold the deceased the painting that it was to be included in the next edition of the artist's catalogue raisonne. You have contacted the expert who is writing the catalogue for confirmation and, after several follow-up phone calls, you still have not received a reply. Another dealer has now told you that the expert is very reclusive and does not return phone calls. The estate appraisal is due. According to USPAP how should this situation be handled?

7. You have been retained as an appraiser expert in an equitable distribution case that is going to court. In completing your appraisal, written according to USPAP, you find that the court requires you to complete the appraisal using a different value type than what us customary for divorce appraisals. How should this be handled?

8. After completing an estate appraisal of a collection of American furniture, the lawyer who has hired you has been so impressed by the quality of your USPAP appraisal that he now wants to retain your services to broker the collection. According to USPAP how should this be handled?

9. Nine months after the date of death, the estate appraisal is due. However, you have not had time to complete it. The lawyer tells you not to worry and just submit an estimated value and complete the appraisal in due course. According to USPAP, how should this be handled?

10. You have been contacted by a judge’s assistant to submit a proposal for a large divorce appraisal. After reviewing your proposal, a divorce attorney arranged an appointment for you to examine the collection. On the date of the appointment, you were met by the daughter of the divorcing couple. You completed your appraisal and were told to send the bill to an accountant. Who is your client? Explain.

VALUES RETAIL REPLACEMENT VALUE (RRV) - HIGHEST VALUE (USUALLY FOR INSURANCE PURPOSES) is defined as the highest amount in terms of US dollars that would be required to replace a property with another of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. When applicable, sales and/or import tax, commissions, advisement fees, and/or premiums are included in this amount. (NYU Appraisal Studies Program definition) AUCTION REPLACEMENT VALUE (ARV) - (USUALLY FOR INSURANCE PURPOSES is defined as a reasonable amount in terms of US dollars that would be required to replace a property with another of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant auction market. Since the client regularly and routinely buys at auctions, the appraisers rarely examined the retail market. When applicable, sales and/or import tax, commissions and/or premiums are included in this amount. RETAIL VALUE (USUALLY TO ESTABLISH A PRICE GUIDELINE FOR RETAIL PRICING) Appraised "retail value" is derived from “retail replacement value ”. It is defined as a reasonable amount in terms of US dollars that would be required to purchase a property of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. Unlike “retail replacement value ”, “retail value ” does not include any fees or additional costs, such as taxes, framing, conservation, restoration, and additional commissions. FAIR MARKET VALUE (FMV) - MIDDLE “SECONDARY MARKET” VALUE (USUALLY FOR IRS PURPOSES) as defined by IRS Section 1.170 and 20.2031 (b) is "the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts." According to Technical Advisory Memorandum 9235005 (May 27, 1992), fair market value should include the buyer's premium. 20.2031 (b) continues "the fair market value of an item of property includible in the decedents's gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of that item in a market other than that in which such item is commonly sold to the public, taking into account the location of the item wherever appropriate. Thus, in the case of an item of property includible in the decedent's gross estate, which is generally obtained by the public in the retail market, the fair market value of such an item of property is the price at which the item or a comparable item would be sold at retail." (Treasury Regulation Section 1.170A-13©)(3)(1988) MARKETABLE CASH VALUE (MCV) - MIDDLE/LOW “NET” VALUE (USUALLY FOR EQUITABLE DISTRIBUTION, RESALE OR ESTATE PLANNING PURPOSES ) is defined as the net value a willing seller realizes after disposing of property in a competitive and open market to a willing buyer. Both the buyer and seller must be reasonably knowledgeable of all relevant facts, and neither being under constraint to buy or sell. Marketable cash value takes into consideration insurance, dealer commissions, advertising, travel, and shipping expenses that may be involved in the sale. ©Gayle M. Skluzacek, AAA NOTE THAT THIS IS NOT AAA APPROVED TEXT

ORDERLY LIQUIDATION VALUE (OLV) - LOW RANGE “NET” VALUE (USUALLY FOR QUICK SALE PURPOSES) is defined as "the most probable price in terms of cash, or other precisely revealed terms, for which the property would change hands under required and limiting conditions in an orderly manner, generally advertised, with reasonable time constraints, in an appropriate and relevant marketplace, with knowledgeable buyers." (ASA 1994 Handbook, p. 2) FORCED LIQUIDATION VALUE (FLV) - LOWEST RANGE “NET” VALUE (USUALLY FOR A QUICK AND FORCED SALE PURPOSES) is defined as "the most probable price in terms of cash, or other precisely revealed terms, for which the property would change hands if sold immediately, without regard to relevant market place." (ASA 1994 Handbook, p. 2) SELVAGE VALUE (SV) - ROCK BOTTOM VALUE - CAN BE A NEGATIVE VALUE (USUALLY FOR MANDATED QUICK AND FORCED SALE PURPOSES) is defined as the net price in terms of cash, or other precisely revealed terms, for which the property would change hands if sold immediately, without regard to relevant market place and appropriate use. In certain cases, this may be a negative value as labor and other costs may be required to disassemble and dispose of the property in a quickly and expedient manner. It is not unusual for various items to have the following values:

Painting by an artist w/ a solid Retail and Auction presence RRV = $22,000 AV = $12,000 RV = $20,000 FMV for estate = $6,000-10,000 FMV for donation = $10,000 MCV = $5,000 OLV = $3,500 FLV = $2,000 SV = N/A

Painting by an artist w/ a solid Retail and Auction presence RRV = $120,000 AV = $70,000 RV = $100,000 FMV for estate = $40,000-60,000 FMV for donation = $60,000 MCV = $35,000 OLV = $30,000 FLV = $15,000 SV = N/A

Contemporary Sofa from a decorator RRV = $22,000 AV = $2,000 RV = $20,000 FMV for estate = $1,000-15,000 FMV for donation = $15,000 MCV = $1,000 OLV = $500 LV = $100 SV = ($1,000)

Painting by a Contemporary artist w/o a significant Auction presence RRV = $120,000 AV = $5,000 or N/A RV = $100,000 FMV for estate = $4,000-90,000 FMV for donation = $90,000 MCV = $3,000 OLV = $2,000 FLV = $500 SV = N/A

©Gayle M. Skluzacek, AAA NOTE THAT THIS IS NOT AAA APPROVED TEXT

SAMPLES OF VERBIAGE FOR NEW USPAP REQUIREMENT REGARDING THE ETHICS RULE ABOUT PAST EXPOSURE TO THE APPRAISED OBJECT

USPAP 2010-2011 Edition The Appraisal Foundation Ethics Rule, Page A-8

231 If known prior to accepting an assignment, and/or if discovered at any time during the assignment, 232 an appraiser must disclose to the client, and in the subsequent report certification: 233 ! any current or prospective interest in the subject property or parties involved; and 234 ! any services regarding the subject property performed by the appraiser within the three 235 year period immediately preceding acceptance of the assignment, as an appraiser or in any 236 other capacity. 237 Comment: Disclosing the fact that the appraiser has previously appraised the property is permitted 238 except in the case when an appraiser has agreed with the client to keep the mere occurrence of a 239 prior assignment confidential. If an appraiser has agreed with a client not to disclose that he or she 240 has appraised a property, the appraiser must decline all subsequent assignments that fall within the 241 three year period.

APPRAISER’S PAST EXPOSURE TO OBJECT: Since 2003, the appraiser has viewed this on several occasions at the client’s home. The appraiser included object in the client’s insurance appraisal. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised this print for other clients, to the appraisers knowledge, this is her first time appraising this particular numbered edition. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised silver in this pattern for other clients, to the appraisers knowledge, this is her first time appraising pieces in this particular service. APPRAISER’S PAST EXPOSURE TO OBJECT: Although the appraiser has appraised similar items of furniture for other clients, to the appraisers knowledge, this is her first time these particular items. APPRAISER’S PAST EXPOSURE TO OBJECT: Since the appraiser has been in the auction business for twenty years, it is impossible to remember every item the appraiser has examined and/or sold. As such, although the appraiser cannot guarantee that he has not been exposed to this item in the past, the appraiser does not recall having any exposure to this work in any capacity for at least the past three years. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser sold this table to the client in 2008. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser appraised this ring for the estate of Cruella D. Head, the client’s mother, in 2009. No breach of confidentiality occurred as the appraiser’s signed contract with the Estate includes a disclosure release. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser was familiar with this painting as it sold at the gallery, The Good Art Gallery, where the appraiser had previously been employed as an archivist, 2002-2008. The appraiser was not involved in the sale of the painting. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser was retained by the client as a photographer and to make a transparency of this painting in June 2008 for a potential sale. The appraiser was not involved in the sale negotiations. APPRAISER’S PAST EXPOSURE TO OBJECT: The appraiser discussed this chair in her book entitled, French Chairs of the 1950s, published by Claverack Books, Hudson, New York in 2008. At that time it was owned by the current client.

GAYLE M. SKLUZACEK, AAA Principal Appraiser, Fine Art Specialist, and Review Appraiser, Abigail Hartmann Associates, New York Appraisal experience: Paintings, works on paper, prints, posters, sculpture, photographs, art glass, art ceramics,

architectural interiors, textiles, rugs, Americana, Japanese prints, manuscripts, books, Judaica, Orientalia, tribal art, Pre-Columbian art, collectibles, artists’ estates, archives, antique furniture, porcelain, silver, general contents

Specialization: European art, 15th - 20th century

American art, 17th - 20th century (certified) Prints, 20th century, American (certified) Wine (certified)

Education: AQB Certified USPAP Instructor, Certified through June 2009

The Appraisal Foundation, Washington, D.C.

Uniform Standards of Professional Appraisal Practice Tested and Passed, May 1994, June 1999, June 2004

Master of Arts Degree Program, Art History Department University of Chicago (Thesis: Marguerite Gerard)

Graduate Department of Architectural History University of Minnesota (Thesis: Bernini)

Bachelors of Art, Art History Department Barat College, Lake Forest, Illinois

Professional Affiliations: Appraisers Association of America (AAA), Certified Member

International Society of Appraisers, Member International Foundation for Art Research Cooper-Hewitt Museum, New York Metropolitan Museum of Art, New York Museum of Modern Art, New York National Museum of Women in the Arts, Washington, D.C. Whitney Museum of American Art, New York Les Amis du Vin

Ms. Skluzacek has worked in curatorial, research, and public relations positions at the Minneapolis Institute of Fine Arts, the Chicago Art Institute, the Oriental Institute, and the Carnegie Institute. In 1981, she became involved in art appraising where she has catalogued important collections, estates, and archives, identified lost masterpieces, served as an art/personal property expert in court cases, including IRS cases, and has worked closely with major museums in their art acquisition programs. She has taught art and wine collecting/appraising courses for the NYC Board of Education and the NJ Center for the Arts. Since 1995 Ms. Skluzacek has been on the faculty of FIT's Graduate School, teaching Valuation and Appraisal. She has been on the faculty of NYU's Appraisal Studies Department since 1992, where she teaches American Art and Research Methods for Appraising. Through NYU and the AAA, Ms. Skluzacek coauthored and taught the first course on Uniform Standards of Professional Appraisal Practice (USPAP) to personal property appraisers in the US. In 2001 she was invited by the Cuban government to teach a course on appraising in Havana. Currently she is working with Florida State University to develop an international online accredited course for appraisers. Ms. Skluzacek was elected to the Board of Directors of the AAA in 1992 and has been an officer of the AAA since 1994 where she served as President in 2000-2002. She is listed in Who's Who of American Women, Who's Who of Emerging Leaders in America, and Who's Who in Society.

REVISIONS TO USPAP FOR 2012-13 The following revisions were made to the 2012-2013 version of Uniform Standards of Professional Appraisal Practice. DEFINITION CHANGES

Client: the party or parties who engage, by employment or contract, an appraiser in a specific assignment Comment: The client may be an individual, group, or entity, and may engage and communicate with the appraiser directly or through an agent. (Page U-2, lines 54-56) This change allows us to discuss confidential matters with the client’s designated agent if necessary - not just the client.

Extraordinary Assumptions: an assumption, directly related to a specific assignment, as of the effective date of

the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions. (Page U-3, lines 78-80) This change is to reduce misunderstandings by appraisers and users of appraisal services in the use of this term. The addition of the phrase “as of the affective date of the assignment results” reiterates that this assumption was in place on the date of valuation. Any later discovery is not considered in the appraisers rationale for valuation (e.g. later change in authorship, later condition issues).

Hypothetical Condition: a condition, directly related to a specific assignment, which is contrary to what is

known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. (Page U-3, lines 86-88) This change is to reduce misunderstandings by appraisers and users of appraisal services in the use of this term. The addition of the phrase “to exist on the effective date of the assignment results” reiterates that this assignment condition was in place on the date of valuation. Any later discovery is not considered in the appraisers rationale for valuation (e.g. later change in condition issues, later changes in the economy).

DEFINITION ADDITIONS

Exposure Time: estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. (Page U-3, lines 73-75) USPAP has always required that appraisers develop an opinion of "reasonable exposure time" whenever it was relevant to the value definition. However, now we are required to report the opinion of EXPOSURE TIME in their documents. (Standard 7-2©, page U-58, lines 1871-1873). The new requirement is that appraisers report the EXPOSURE TIME in the appraisal, anytime it is developed (and it MUST be developed when it is relevant to the definition of value). Keep in mind that “Exposure time” is NOT the same as "Marketing time". Many appraisers already include an estimate of "marketing time", so this will require the addition of specific statements to indicate the appraiser's opinion of the reasonable “Exposure time” that was developed in the process of estimating market value. There can be a substantial difference (especially in a down economy when sellers need cash or when there are no buyers) between exposure time and marketing time or they can be the same. It is important to understand the difference. Exposure time is a "retrospective" opinion, looking back (from the effective date) to the beginning of the "hypothetical" process of selling the work, so that the sale would have been consummated on the "effective date" of appraisal. (e.g. How many weeks/months would a work be on the market before a buyer could be found? In doing so, what concessions had to be made?) Whereas marketing time is a "prospective" estimate (from the effective date), to estimate the amount of time it might take a seller (or possibly the Intended User), to market and sell the asset. Remember, this is just a disclosure of your thought process in arriving at the appraised value.

UNDER THE ETHICS RULE: CONDUCT

An appraiser must not willfully or knowingly violate the requirements of the Record Keeping Rule (Page U-7, line 228) By moving the Record Keeping Rule to its own Rule (outside of Ethics), it appeared to be less of an infraction if not followed. The inclusion this statement in the Conduct Section of Ethics reminds appraisers that "willfully and knowingly" violating the Record Keeping Rule is still considered an Ethics violation and can be judged accordingly.

© Gayle M. Skluzacek, AAA

REVISIONS TO USPAP FOR 2012-13 (Page 2) EXPOSURE RULE ADDITION TO YOUR SIGNED CERTIFICATION The certification needs a sentence similar to the following: ! I have performed no (or the specified) services, as an appraiser or in any other capacity, regarding the property

that is the subject of this report within the three year period immediately preceding the acceptance of this assignment. (Page U-69, lines 254-256) This can be personalized, but must be included.

REWRITE OF STANDARD 7 AND STANDARD 8 (PERSONAL PROPERTY) These standards were rewritten by Personal Property appraisers to reflect the type of property we appraise. The term

“highest and best use” was removed. (Page U-59, lines 1921-1927) REVISIONS TO ADVISORY OPINION 21, USPAP COMPLIANCE This Advisory Opinion was significantly updated and edited to include more current examples and to reflect other

recent USPAP changes. There is considerable discussion about when USPAP applies when wearing multiple hats. Remember that the Advisory Opinions are issued to illustrate the applicability of USPAP in specific situations. They do not carry the full weight of USPAP. (A-61 - A-69)

PLEASE NOTE: These changes became effective on January 1, 2012. The current USPAP is 2012-2013. All

appraisers are required to follow the current standards, regardless of when they last took USPAP.

The Appraisal Foundation has prepared a short video about these changes. Please go to: http://www.globalpres.com/mediasite/Viewer/?peid=ae8192ef41804f23a498bf7b30458189

© Gayle M. Skluzacek, AAA

USPAP Language for your Business Documents When you reference USPAP in any of your documents, you should not use the phrase "USPAP-certified" as this is NOT permitted by The Appraisal Foundation; you may use the phrase "USPAP-compliant" or even better, use the following phrase: "Successfully completed a 15-hour course and examination on the Uniform Standards of Professional Appraisal Practice (USPAP), the Congressionally-recognized set of appraisal standards promulgated by The Appraisal Foundation. Completed in DATE HERE, effective through DATE HERE (which is 5 YEARS after COMPLETION)."

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Part III - Administrative, Procedural, and Miscellaneous Guidance Regarding Appraisal Requirements for Noncash Charitable Contributions Notice 2006-96 SECTION 1. PURPOSE

This notice provides transitional guidance relating to the new definitions of

“qualified appraisal” and “qualified appraiser” in § 170(f)(11) of the Internal Revenue

Code, and new § 6695A of the Code regarding substantial or gross valuation

misstatements, as added by § 1219 of the Pension Protection Act of 2006, Pub. L. No.

109-280, 120 Stat. 780 (2006) (the “PPA”).

The Service and the Treasury Department expect to issue regulations under

§ 170(f)(11). Until those regulations are effective, taxpayers may rely on this notice to

comply with the new provisions added by § 1219 of the PPA.

SECTION 2. BACKGROUND

A deduction for charitable contributions is generally permitted under § 170(a),

subject to certain limitations depending on the type of taxpayer, the nature of the

property contributed, and the type of donee organization. Section 170(f)(11), as added

by § 883 of the American Jobs Creation Act of 2004, Pub. L. No. 108-357, 118 Stat.

1418 (2004), contains reporting and substantiation requirements relating to the

allowance of deductions for noncash charitable contributions. In particular, under

§ 170(f)(11)(C), taxpayers are required to obtain a qualified appraisal for donated

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property for which a deduction of more than $5,000 is claimed. Under § 170(f)(11)(D),

in certain cases the qualified appraisal must be attached to the tax return. For

appraisals prepared with respect to returns filed on or before August 17, 2006, existing

Treasury Regulations provide a definition of the terms “qualified appraisal” and “qualified

appraiser” for purposes of § 170(f)(11).

Section 1219 of the PPA amends § 170(f)(11)(E) and provides statutory

definitions of a qualified appraisal and qualified appraiser for appraisals prepared with

respect to returns filed after August 17, 2006.

Section 170(f)(11)(E)(i) provides that the term “qualified appraisal” means an

appraisal that is (1) treated as a qualified appraisal under regulations or other guidance

prescribed by the Secretary, and (2) conducted by a qualified appraiser in accordance

with generally accepted appraisal standards and any regulations or other guidance

prescribed by the Secretary.

Section 170(f)(11)(E)(ii) provides that the term “qualified appraiser” means an

individual who (1) has earned an appraisal designation from a recognized professional

appraiser organization or has otherwise met minimum education and experience

requirements set forth in regulations prescribed by the Secretary, (2) regularly performs

appraisals for which the individual receives compensation, and (3) meets such other

requirements as may be prescribed by the Secretary in regulations or other guidance.

Section 170(f)(11)(E)(iii) further provides that an individual will not be treated as a

qualified appraiser unless that individual (1) demonstrates verifiable education and

experience in valuing the type of property subject to the appraisal, and (2) has not been

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prohibited from practicing before the Internal Revenue Service by the Secretary under

§ 330(c) of Title 31 of the United States Code at any time during the 3-year period

ending on the date of the appraisal.

Section 1219 of the PPA also adds a new penalty provision. If the claimed value

of property based on an appraisal results in a substantial or gross valuation

misstatement under § 6662, a penalty is imposed by new § 6695A on any person who

prepared the appraisal and who knew, or reasonably should have known, the appraisal

would be used in connection with a return or claim for refund.

SECTION 3. TRANSITIONAL GUIDANCE

.01 In general

The Service and the Treasury Department expect to issue regulations under

§ 170(f)(11), as amended by the PPA. The terms in section 3 of this notice apply to

contributions of property (other than readily valued property within the meaning of

§ 170(f)(11)(A)(ii)(I)) by individuals, partnerships, or corporations for which a deduction

of more than $5,000 is claimed on returns filed after August 17, 2006, and before the

effective date of the regulations that the Service and the Treasury Department expect to

issue. Until regulations are effective under § 170(f)(11), as amended by the PPA, an

appraisal that meets the requirements of this notice shall be treated as a qualified

appraisal for purposes of § 170(f)(11). The determination of whether an appraiser is

qualified under section 3.03 of this notice must be based on the appraiser’s

qualifications as of the date the appraisal is made.

.02 Transitional terms-qualified appraisal

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(1) Qualified appraisal. An appraisal will be treated as a qualified

appraisal within the meaning of § 170(f)(11)(E) if the appraisal complies

with all of the requirements of § 1.170A-13(c) of the existing regulations

(except to the extent the regulations are inconsistent with § 170(f)(11)),

and is conducted by a qualified appraiser in accordance with generally

accepted appraisal standards. See sections 3.02(2) and 3.03 of this

notice.

(2) Generally accepted appraisal standards. An appraisal will be

treated as having been conducted in accordance with generally accepted

appraisal standards within the meaning of § 170(f)(11)(E)(i)(II) if, for

example, the appraisal is consistent with the substance and principles of

the Uniform Standards of Professional Appraisal Practice (“USPAP”), as

developed by the Appraisal Standards Board of the Appraisal Foundation.

Additional information is available at http://www.appraisalfoundation.org.

.03 Transitional terms – qualified appraiser

(1) Appraisal designation. An appraiser will be treated as having

earned an appraisal designation from a recognized professional appraiser

organization within the meaning of § 170(f)(11)(E)(ii)(I) if the appraisal

designation is awarded on the basis of demonstrated competency in

valuing the type of property for which the appraisal is performed.

(2) Education and experience in valuing the type of property. An

appraiser will be treated as having demonstrated verifiable education and

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experience in valuing the type of property subject to the appraisal within

the meaning of § 170(f)(11)(E)(iii)(I) if the appraiser makes a declaration in

the appraisal that, because of the appraiser’s background, experience,

education, and membership in professional associations, the appraiser is

qualified to make appraisals of the type of property being valued. See

also § 1.170A-13(c)(5).

(3) Minimum education and experience. An appraiser will be

treated as having met minimum education and experience requirements

within the meaning of § 170(f)(11)(E)(ii)(I) if –

(a) For real property

(i) For returns filed on or before October 19, 2006,

the appraiser is qualified as a “qualified appraiser” within the

meaning of § 1.170A-13(c)(5) to make appraisals of the type

of property being valued.

(ii) For returns filed after October 19, 2006, the

appraiser is licensed or certified for the type of property

being appraised in the state in which the appraised real

property is located.

(b) For property other than real property –

(i) For returns filed on or before February 16, 2007,

the appraiser is qualified as a “qualified appraiser” within the

meaning of § 1.170A-13(c)(5) to make appraisals of the type

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of property being valued.

(ii) For returns filed after February 16, 2007, the

appraiser has (A) successfully completed college or

professional-level coursework that is relevant to the property

being valued, (B) obtained at least two years of experience

in the trade or business of buying, selling, or valuing the type

of property being valued, and (C) fully described in the

appraisal the appraiser’s education and experience that

qualify the appraiser to value the type of property being

valued.

.04 Applicability of reporting and substantiation regulations

(1) In general

The requirements of § 1.170A-13(c) of the existing regulations concerning

qualified appraisals and qualified appraisers continue to apply to all taxpayers, including

those to whom the transitional guidance in this section may apply, except to the extent

the regulations are inconsistent with the provisions of § 170(f)(11). In particular, all

taxpayers are required to comply with §§ 1.170A-13(c)(3), (c)(5), (c)(6) and (c)(7).

(2) Revision to appraiser declaration

For returns filed after February 16, 2007, the declaration required under

§ 1.170A-13(c)(5)(i) must include an additional statement that the appraiser

understands that a substantial or gross valuation misstatement resulting from an

appraisal of the value of property that the appraiser knows, or reasonably should have

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known, would be used in connection with a return or claim for refund, may subject the

appraiser to a civil penalty under § 6695A. See also § 1.170A-13(c)(3)(iii).

SECTION 4. REQUEST FOR COMMENTS

The Service and the Treasury Department invite comments containing

suggestions for future guidance under § 170(f)(11), including regulations. In

particular, comments are requested concerning the definition of the following

terms: (1) "generally accepted appraisal standards” in § 170(f)(11)(E)(i)(II); (2)

"appraisal designation from a recognized professional appraisal organization” in

§ 170(f)(11)(E)(ii)(I); (3) "minimum education and experience requirements” in

§ 170(f)(11)(E)(ii)(I); and (4) “verifiable education and experience in valuing the

type of property subject to the appraisal” in § 170(f)(11)(E)(iii)(I). Comments also

are requested on the potential impact any guidance under § 170(f)(11) may have

on small businesses. Comments should refer to Notice 2006-96 and be

submitted by January 17, 2007, to:

Internal Revenue Service P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044 Attn: CC:PA:LPD:PR Room 5203 Alternatively, comments may be submitted electronically via e-mail to the following

address: [email protected]. All comments will be available for

public inspection and copying.

SECTION 5. PAPERWORK REDUCTION ACT

The collections of information in this notice have been reviewed and approved by

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the Office of Management and Budget (OMB) in accordance with the Paperwork

Reduction Act (44 U.S.C. 3507) under control number 1545-1953.

An agency may not conduct or sponsor, and a person is not required to respond

to, a collection of information unless the collection of information displays a valid OMB

control number.

The collections of information in this notice are in section 3 of this notice. The

collections of information are required from donors to satisfy the substantiation

requirements of § 170(f)(11). The collections of information are required from donors to

obtain a benefit. The likely respondents are individuals, partnerships, and corporations.

The estimated total annual reporting burden is 161,571 hours.

The estimated annual burden per respondent varies from 5 minutes to 5 hours,

with an estimated average of approximately 3.5 hours. The estimated number of

respondents is 46,285.

The estimated annual frequency of responses (used for reporting requirements

only) is once per year.

Books or records relating to a collection of information must be retained as long

as their contents may become material in the administration of any internal revenue law.

Generally, tax returns and return information are confidential, as required by § 6103.

SECTION 6. DRAFTING INFORMATION

The principal author of this notice is Susan J. Kassell of the Office of Associate

Chief Counsel (Income Tax & Accounting). For further information regarding this notice

contact Susan J. Kassell at (202) 622-5020 (not a toll-free call).

SAMPLE REPORT -FOR DONATIONUSPAP DOES NOTDICTATE FORM,FORMAT OR STYLE

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Appraiser’s nameAddressPhone1MR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM2 32008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 1 OF 344 5 6 7 8APPRAISERS’ CERTIFICATION9

COMPANY NAME is a registered firm of appraisers qualified to appraise personal propertyincluding fine art and antiques. The appraiser signed below, APPRAISER NAME, AAA,holds herself out to the public as a professional appraiser of Fine Art, includingContemporary Art as included in this appraisal document. APPRAISER NAME is not now10nor has ever been disqualified by the IRS from preparing IRS appraisals.11Although the appraiser has appraised similar objects for other clients, to theappraiser’s knowledge, this is her first association with these particular objects.12The appraiser did not examine the artwork, however has carefully examined informationand images of the articles listed herein. Valuation is based solely on personal13research and analysis of comparative market data as performed by the appraisers and14office assistants at COMPANY NAME. No other party was significant in the valuation ofthe appraised property. Although the statements of fact contained in this report are15true and correct , the reported analyses, opinions, and conclusions are limited only16by the reported assumptions and limiting conditions . The values expressed herein are17based on the appraisers’ best judgement and opinion and are not a representation orwarranty that the items will realize that value if offered for sale in an appropriatemarket within the United States .18The appraiser, without any past, present, or contemplated future interest or bias19which might tend to prevent a fair and objective appraisal declares the current fairmarket value of each item.20Compensation for this appraisal is not contingent upon the arrived valuation . Fee21is based on a discounted (15% professional courtesy) hourly rate plus expenses. No22person, group, or organization was given a fee in connection with the procurement ofthis appraisal assignment. Further, compensation is not contingent upon the reporting23of a predetermined value or direction in value that favors the cause of theclient/donor, the amount of the value estimate, the attainment of a stipulated result,or the occurrence of a subsequent event.24The objective of this report is to provide an unbiased fair market value guideline anda basis for charitable donation evaluation . The appraiser understands that this25appraisal will be used in connection with a tax return or claim for refund, and asubstantial or gross valuation misstatement resulting from this appraisal may subjectme to a civil penalty under Section 6695A of the Internal Revenue Code.26According to the client/donor named at the top of every page of this report, thearticles listed herein are to be given free and clear, without restrictions, to thepermanent collection of the Famous University Art Museum, Famous City, Famous State (anIRS qualified non-profit charitable organization) (See Exhibit 1).27Digital images are included as references in the event of an audit by the InternalRevenue Service. The client/donor is responsible for obtaining the appropriatephotographs as requested by the Internal Revenue Service. The Famous University Art28Museum is responsible for obtaining and filing the appropriate IRS form 8283, if andwhen applicable.(Continued on Page 2)


Appraiser’s nameAddressPhoneMR. AND MRS. SAM PULL - FAMOUS UNIVERSITY ART MUSEUM2008 SELF-CONTAINED “FAIR MARKET VALUE” DONATION APPRAISAL PAGE 2 OF 34

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APPRAISERS’ CERTIFICATION(Continued from Page 1)The appraiser did not examine the donated articles due to their location . However,29the appraiser viewed three (3) colored digital images of the work and discussed thecurrent condition of the articles with Mr. Art, a trained art professional and Mr.Master, the Assistant Curator of Western Art at the Famous University Art Museum(Exhibit 2). As such, the appraiser does not feel that the reported values of the workin this report has been compromised in any manner due to the absence of the personalexamination.Appraiser valued two (2) articles of Fine Art as designated by client/donor for thisrecipient in 2008.This report has been written according to the rules of the 2008 USPAP (Uniform Standardof Professional Appraisal Practice) . This appraisal is considered to be a30“retrospective” self-contained appraisal report as the appraiser conducted her31 32research during the Fall of 2008, 9-10 months after the donation had been accepted.Although the appraiser conducted her research in Fall 2008, the effective valuationdate is the “retrospective” January 2008 date.Although these certification pages include salient information regarding themethodology of the report, additional information regarding the scope of work,assignment conditions, and disclaimers are important to understand the entire appraisalprocess. As such, the entire report is required to fully understand the assignment andthis certification page encompasses the entire report and is not valid without readingand understanding the entire report.33Total pages of report: ##34Total number of articles appraised: #Total number of photographs and/or digital images: #35Total number of exhibits: #Examination date: DID NOT EXAMINE36Research dates: September 20 - October 10, 200837Date of donation: January 20, 200838Effective valuation date: January 20, 200839Issue date of the report: October 12, 200840

APPRAISER NAME, AAA41Appraisers Association of America, Certified Member42 ID# -----------43



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APPRAISERS’ CV 44



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TABLE OF CONTENTS45Appraisers' Certification Pages 1 - 2Appraiser’s Qualifications Page 3APPRAISER NAME, AAA Page 3Table of Contents Page 4Scope of Work: Appraisal Method and Definition of Value Pages 5 - 9Explanation of Authorship and Attribution Page #Disclaimers, Limiting Conditions & Assumptions Pages ## - ##Market Analysis Page ##Total Value Page ##Donated ItemArticle 1 - XXXXXXXX Page ##Famous Artist Pages ## - ##Comparable Sales and Offerings for XXXXXXXX- Auction Sales Pages ## - ##Valuation for XXXXXXXX Page ##Donated ItemArticle 2 - MMMMM Pages ## - ##Comparable Sales and Offerings for MMMMMAuction Sales and Retail Sales Page ##Valuation for MMMMM Page ##Sources Page ##References Books and Price Guides Page ##Galleries, Experts, Auctions, Internet Sites Page ##Digital Images Follows reportExhibit 1 - Deed of Gift from the Famous University Art Museumsigned January 20, 2008 Follows reportExhibit 2 - Mr. Master, the Assistant Curator of Western Art at the FamousUniversity Art Museum email dated October 1, 2008 Follows reportExhibit 3 - Mission Statement of the Famous University Art Museum as indicatedon their website: http://famousmuseum.edu/about/ Follows reportExhibit 4 - Photocopy of Bid It Ups’ auction catalogue: Modern and Contemporary Works of Art, Bid it Up Auction, Anytown, Any State; Sale - January 12, 2003 Lot 121 Follows report

http://(http://artmuseum.princeton.edu/about/



http://artmuseum.Famous.edu/about/1 5

SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE46PROBLEM TO SOLVE : The appraiser was asked to appraise one (1) painting, XXXXXXXX, by47Famous Artist and a suite of three (3) lithographs, MMMMM, by various artists whichhave been donated to the Famous University Art Museum, Famous City, Famous State. Theclient/donor requires this appraisal as they will be taking a deduction from their2008 Federal Income Taxes based on the appraised value of the contribution. Thisappraisal will be sent to the client/donor. The client/donor will be advised to senda copy of this appraisal to the Famous University Art Museum and to keep a copy of thereport with their taxes for submission upon request.CATEGORY OF ITEM S EXAM INED : Contemporary art.48CLIENT : Owners/donors of the artwork, Mr. and Mrs. Sam Pull.49OW NERS OF THE ARTW ORK : Mr. and Mrs. Sam Pull.50USE OF APPRAISAL : Charitable Contribution / Taxation.51USER(S) OF APPRAISAL : This appraisal can be used and relied upon by the clients/donors,52their designated attorney and/or accountant, the Famous University Art Museum, and theInternal Revenue Service. Any other user is considered an unintended user.APPRAISER’S PAST EXPOSURE TO APPR A ISED OBJECTS: To the appraiser’s knowledge andrecollection, this is her first association with these particular objects.RELATED USE : The primary mission of the Famous University Art Museum is to53effectively support and enhance the university’s goals of teaching, research, andservice. The donation of XXXXXXXX by ------ will enhance the museum’s collection ofAbstract Expressionists work and is available for Art Historical studies. Thedonation of the MMMMM portfolio is an economy-inspired work which will speak to thePolitical Science, Economics, History, as well as the Art History Department. Themuseum also has a clear commitment to serve the local community, the region, andbeyond. The museum encourages the public to benefit from its art collections andfrequent exhibitions and to provide support for its principal activities throughspecific programs and outreach initiatives. Scholarly exhibitions, publications,symposia, and an active loan program extend the museum’s reach to a national andinternational audience, assuring its continuing vitality and its active participationin the university’s primary commitment to advance and impart knowledge. (Exhibit 3)1.EFFECTIVE / VALUATION DATE OF APPRAISAL : The value expressed in this appraisal is effective54on the date listed on the Deed of Gift from the Famous University Art Museum, FamousCity, Famous State, signed January 20, 2008 (Exhibit 1).OW NERSHIP INTEREST / ART LOSS REGISTER : The question of title was not an issue. As such,55the appraiser did not perform Art Loss Register Inquiries. Client provided theappraiser with detailed invoices for both works.(Continued on Page 6)



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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)AUTHENTICITY : Although the appraiser is not an authenticator, the appraiser had no56reason to doubt the authenticity of the works. Client provided the appraiser withdetailed invoices for both works, each indicating correct catalogue raisonnéinformation.GENERAL ASSIGNM ENT CONDITIONS : The appraiser did not examine the appraised works. This57appraisal is based on information supplied to the appraiser by the client/donor, theFamous University Art Museum, and through personal research.The appraiser was given adequate time to research the items. Appraiser was givenminimal documentation for these articles.SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS) : The appraiser assumes the mediums to be as58reported. A scientific analysis of the chemical compounds of the supports or pigmentswas not conducted as it was not an issue relating to valuation.SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS) : The appraiser did not examine the59donated articles due to their location. However, the appraiser viewed digitalphotographs of the works as well as discussed the condition of the work with ArtProff, a trained art professional and Vincent Van Went, the Assistant Curator ofWestern Art at the Famous University Art Museum (Exhibit 2).Appraiser was given minimal documentation for these articles.The appraiser assumes information provided by the client/donor to be correct.The appraiser assumes the subject works will be the work donated to the museum.The appraiser assumes authorship to be authentic .60The appraiser assumes these works were previously traded in an appropriate marketwithout any unusual market stimuli affecting its sale or transaction .61The appraiser assumes the clients/donors retained full title to the works immediatelyprior to the gift.62SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIONS) : This report is limited to the63information provided by the clients/donors (This is also considered an extraordinaryassumption).This report is limited by the examination from a photograph (This is also consideredan extraordinary assumption).(Continued on Page 7)



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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)The appraiser is not a conservator as such did not prepare a condition report. Thisappraisal is limited by the appraiser’s visual inspection of the photographs and theinput from the client and the Famous University Art Museum (Exhibit 2). No othercondition report was supplied.64SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS) : This report is based on the65hypothetical existence of the artwork and the validity of the condition and factspresented by the clients/donors and the Museum.EXAM INATION AND M ETHOD OF EXAM INATION : The appraiser examined all available66documentation relating to the work. She did NOT personally examine the artwork.The appraiser was able to ascertain medium, style, and quality of work from thephotograph, supporting documentation, and discussions with client/donor’s agent. Allmeasurements were provided by the museum or standard reference material (asindicated).The appraiser assigned a general condition report to the object based on theexamination of the photographs and the documentation (Exhibit 2). “Condition” refersto what is considered generally acceptable, with ordinary wear and tear for its type,unless otherwise noted. Condition comments are limited to variations of good, fair,and poor.67PHOTOGRAPHY/DIGITAL IM AGERY : Three (3) digital color images of the works were supplied68by the Museum. The client supplied the appraiser with a color photo-copy of the Bidit Up auction catalogue where the painting was purchased. To the appraiser’sknowledge, these photographs/photocopies/digital images have not been altered ormodified. The appraiser is not responsible for any alterations or modification, ifany exist.The client is responsible for obtaining the regulation size photographs as requiredby the IRS.M ETHOD OF RESEARCH : Research was conducted in the offices of COMPANY NAME. The69office is equipped with an extensive library of over 10,000 research books and auctioncatalogues. Additional research was conducted on the Internet using standard searchengines as well as pricing data bases to which COMPANY NAME subscribes (includingArtNet, ArtFact, ArtPrice, AskArt, ArtInfo, and Gordonsart). Appropriate galleriesand auction houses were contacted for information when necessary. No outside libraryor museum research was conducted for this specific appraisal. Specific sources andInternet sites are listed at the end of the report.

(Continued on Page 8)



2The Gramm-Leach-Bliley Act, passed in 1999 and fully effective in July, 2001,addressed overall financial industry reforms as well as emerging consumer privacyand security issues. Officially called the “Financial Modernization Act of1999”, it affects the technology and information system policies used by anyoneengaged in providing financial services either directly or indirectly toconsumers. Appraisers are specifically named as institutions required to followthe stipulations of the law. 8

SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)The clients/donors provided the appraiser with minimal primary information regardingthe artwork.The appraiser was given adequate time to research the items.TYPE OF APPRAISAL : This report is considered to be a “retrospective” self-contained70appraisal report according to the rules of the 2008 USPAP (Uniform Standard ofProfessional Appraisal Practice). Specific comparables not included in this reportare held in the clients’/donors’ files at COMPANY NAME. Specific comparable retailsales history is confidential according to the Gramm, Leach, Bliley Act and cannot2be disclosed without the owner’s permission. However, the appraiser has noted generalconversations in the client’s file in the offices of COMPANY NAME. The client fileis available for the clients, the clients’ representatives, and/or the IRS (with theclients’ permission) to examine upon request. This information will be kept byCOMPANY NAME for a minimal period of five (5) years after the date of issue or two (2)years after final disposition of any judicial proceedings involving the appraiser,whichever period expires last.APPROACH TO VALUE : The appraiser named on the cover page of this document employed71the "market comparison" approach to arrive at the appraised "fair market value". The"income" approach and the "cost" approach are not applicable to this particularappraisal.M ARKET EXAM INED : The "market comparison" approach analyzes recent sales of comparable72articles at appropriate major international and regional fine art auctions, privateand public sales, shows and exhibitions, as well as prevailing prices at retail shopsand galleries where the article may normally be traded. For this particularappraisal, the appraiser examined the American gallery and auction markets.Adjustments are then made for each article which consider age, condition, rarity,artistic merit, technical workmanship, current trends and availability of an articleas compared to such recent sales.




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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)TYPE OF VALUE USED : Fair Market Value.73DEFINITION OF VALUE : Appraised “fair market value” as defined by IRS Section 1.170 and7420.2031 (b) is "the price at which the property would change hands between a willingbuyer and a willing seller, neither being under any compulsion to buy or to sell andboth having reasonable knowledge of relevant facts." (According to Technical AdvisoryMemorandum 9235005 (May 27, 1992), fair market value should include the buyer'spremium.) 20.2031 (b) continues "the fair market value of an item of propertyincludible in the decedents's gross estate is not to be determined by a forced saleprice. Nor is the fair market value of an item of property to be determined by thesale price of that item in a market other than that in which such item is commonlysold to the public, taking into account the location of the item wherever appropriate.Thus, in the case of an item of property includible in the decedent's gross estate,which is generally obtained by the public in the retail market, the fair market valueof such an item of property is the price at which the item or a comparable item wouldbe sold at retail." (Treasury Regulation Section 1.170A-13©)(3)(1988)SOURCE FOR VALUE DEFINITION : IRS Section 1.170 and 20.2031 (b) and Treasury Regulation75Section 1.170A-13©)(3)(1988)USPAP COM PLIANCY : The report was written by APPRAISER NAME, AAA whose USPAP76qualification with the AAA is valid until 2009.This appraisal report follows the guidelines of USPAP in that the report provides allof the necessary information/analysis to satisfy the “retrospective” reportdevelopment requirements as defined in Standard 7 (Personal Property, Development) andthe writing requirements of a Self-contained Appraisal as defined in Standard 8(Personal Property, Reporting).



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EXPLANATION OF AUTHORSHIP AND ATTRIBUTION77AUTHORSHIP GLOSSARYTitle - If a generally accepted title for the work exists, thattitle is given. If the work is untitled or the title is unknown, adescriptive title may be assigned and is indicated with an asterisk(*).When provenance is unknown and a search of reliable sources fails torender information concerning a particular artist or work involved,a value determination is based on artistic merit and marketconditions.Authorship - When a work is unsigned but generally accepted in thescholarly community to be by a particular artist, that artist's namewill be indicated as "Ascribed to...". This is the highest categoryof authenticity.When a question of doubt concerning authorship prevails, theauthorship will be indicated as "Attributed to..." a particularartist or a school.When a signature exists on a work, but the work does not appear tobe by the hand of such signed artists, the appraiser will indicatethat the work "Bears signature of...". This means that theappraiser does not believe the work to be by the "signed" artist.



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GLOSSARY OF TERMS APPLICABLE TO THIS REPORT78buyer's premium - a percentage of the bid ("hammer") price at an auction; canrange 5 - 25%.canvas size - the actual size of a work on canvas where the edges are visible.catalogue raisonné - a scholarly catalogue which should include all the knownworks by an artist at the time of compilation; includes essential informationby which works are identified; the definitive reference book.estimate (est.) - the pre sale dollar amount suggested by an auction house atwhich an object is expected to fetch at auctionexpressionist - a style of art characterized by distortions of line, shape, andcolor based on an emotional reaction of the artisthammer price - the actual "bid" price at an auction; does not include thepremiumimpasto - paint applied with the consistency of thick pasteo/c - oil on canvasphoto-offset lithograph - is the most common way to print limited edition art,posters, magazines, catalogs, brochures and most other color images on paper.It is a mechanical four color press process; often a form of transfer printing.reserve - the agreed upon minimal amount at which an item can be sold atauctionseller's premium - a percentage of the bid ("hammer") price at an auction;usually 5 - 15%. It is usually more negotiable than the buyer's premium.TAM - Tax Advisory Memorandumwatermark - design left in the paper by the paper manufacturer; seen when heldagainst the light; used to trace the origin of the paper; special markings foran artist or publisher may incorporate a signature or a device; can be used todetect fakes -- although it can be faked.work size - the actual size of a work on board or paper where the edges arevisibleunsold - an artwork that did not sell at auction. The most common reason itemsare unsold is because the item failed to reach its reserve (AKA “buy-in”,“bought-in”, or “bi”). Other reasons an item is unsold could be that the itemwas withdrawn based on ownership or authenticity, or that the consigner changedtheir minds.


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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS79This certificate of appraisal is given, subject to the terms and conditionshereinafter set forth, all of which are a part hereof unless expressly set asidein writing either on the pages of this certificate or by writing attached to thecertificate signed by all parties concerned.This appraisal consists of 27 (plus 4 exhibits) pages and must be presented inits entirety to be valid.This appraisal is prepared solely for charitable contribution purposes using80the comparative market approach to arrive at the fair market value as of81 82January 20, 2008. It is to be used solely by Mr. and Mrs. Sam Pull and their83agents (accountants, attorneys) for income tax purposes. This report can be84 85relied upon by the Internal Revenue Service and the Famous University Art86Museum .87The client shall indemnify, defend, and hold us harmless from and against allactions, claims, liabilities or expenses incurred as a result of claims based onor arising from the appraisal, by third parties unrelated to the immediate purposeof this appraisal.88Unless otherwise stated herein, this certificate is based only on the readilyapparent identity of the items appraised, and no further opinion nor guarantee ofauthenticity, genuineness, attribution, or authorship is made . However, in89appraising the subject articles, the appraiser found no reason to question theauthenticity of the articles, unless as indicated in the individual description.The appraiser did not personally examine the artwork. All descriptive informationpertaining to the work was supplied by the client, the Famous University ArtMuseum, and/or through standard reference material and the Internet. No reportedscientific and/or laboratory testing has been performed on any works.Unless otherwise stated herein, the appraised value is based on the wholeownership and possessory interest undiminished by any liens, fractional interestsor any other form of encumbrance or alienation.90This certificate is made at the request of the party named for their use. It isnot an indication or certificate of title ownership. The identification of the91interest of the requesting party is simply that represented to the appraiser bysuch party and no inquiry or investigation has been made nor is any opinion givenas to the truth of such representation.92The value expressed herein is based on the appraiser’s best judgment and opinion93and is not a representation or warranty that the items will realize that value ifoffered for sale at an auction or otherwise. The values expressed are based oncurrent information on the date stated on the cover page of this report. No94opinion is hereby expressed as to any future value, nor unless otherwise stated,as to any past value.95(Continued on Page 12)


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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 11)The appraiser is not responsible if items are sold at a reduced value for futureliquidation. Reported appraised values are the fair market values as defined onPage 9 of this report. Reported appraised values are not the prices that wouldbe achieved through discounted or wholesale sales.96The appraiser has considered the highest and best use of the appraised articleswith respect to the most appropriate, common, and legal marketplace given thepurpose of the appraisal.97The appraiser has no past interest, no present interest, nor any contemplatedfuture financial interest in the appraised property. Although Mrs. Pull was a98student of the appraiser, the appraiser has no other personal interest or biaswith respect to the parties involved. This appraisal was done objectively,99according to the rules of the IRS (in the Pension Protection Act of 2006 H.R. 4,Public Law 109-280) , and in accordance with the 2008 Uniform Standards of100Professional Appraisal Practice . Further, the appraiser has no other interest101which might tend to prevent making a fair and unbiased appraisal.102This appraisal was researched and prepared by the appraiser named on the coverpage of this report. Primary research was done by APPRAISER NAME at COMPANY103NAME. Supplemental research was supplied by office assistants at COMPANY NAME,104particularly Reah Serch. No other person supplied significant assistance in105preparation of this report.106The client/donor provided the appraiser with some oral information regarding thework listed herein. Although the appraiser routinely checked the client’sinformation (when possible), the appraiser is not responsible for the accuracy ofthis information.107Information originally provided by the client through documents and/or auctioncatalogues is assumed to be correct, however, the appraiser is not responsible forany errors or misrepresentations on the part of either the client or thedocumentation.The appraiser did not personally examine any of the comparable sales and/orofferings with regard to these particular works. The appraiser is relying oninformation made available through price data bases regarding authenticity,condition, and sales information concerning these works.108Consulting sources are listed in the back of the report. Information furnished109by consulting sources is assumed to be reliable, but is not guaranteed by thisappraiser or her firm.110



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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continue from Page 13)The appraiser is not required to give testimony, be present in any court of law,or appear before any commission or board by reason of this appraisal, unless priorarrangements have been made with the appraiser. Should this report be111challenged in anyway, not limited to litigation, it is understood that theappraiser is prepared to defend their appraisal, if required. Courtroomtestimony, mediation proceedings, and the necessary preparation are considered tobe separate assignments and will be billed at our then current normal hourly rateplus expenses as required.Possession of this report, or copy thereof, does not include the right ofpublication without the written consent of the appraiser and her firm. Thisreport in its entirety, or any part thereof, including the identity of theappraiser or her firm, shall not be made public through advertising, publicrelations, news releases, sales, or other distributive or information mediawithout the written consent of the appraiser and her firm.112Copies of this appraisal and notes pertaining to the appraisal, written andelectronic, will be kept in the offices of COMPANY NAME for a minimal period offive (5) years after the date of issue or two (2) years after final dispositionof any judicial proceedings involving the appraiser, whichever period expireslast. COMPANY NAME will make every effort to store clients/donors records in113a safe and secure environment, however the firm is not responsible for acts ofwar, terrorism, or other such unexpected catastrophes which may affect thesafekeeping of this report.All matters treating the duties, responsibilities, and liabilities of theappraiser are in accord with the Valuation Standards and Professional Practicesas outlined by the Appraisal Foundation in the 2008 Uniform Standards ofProfessional Appraisal Practice and the Principles of Practice and the Code ofEthics of the Appraisers Association of America.114

_______________________________________________________________________________© 2009 COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in a retrieval systemor transmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior written permissionof COMPANY NAME and the appraisers' signature.


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MARKET ANALYSIS115Recent published auction sales and available gallery sales are listed in the reportfollowing the description of the appraised articles. These listings serve tosubstantiate the final appraised value as well as indicate market preferences andlevels. Copies of these sales as well as a copy of this report are kept on file in the116offices of COMPANY NAME for a period of five years or two years after any judicialproceedings in accordance with the standards set forth in the 2008 version of UniformStandard of Professional Appraisal Practice (Record Keeping, p. 9).117Given that the art markets are always volatile markets, an overall market valuationforecast cannot be established. Particularly with the uncertain political and economicsituation of the world after September 11, 2001, a market analysis is difficult toprepare in these unstable times.Many factors enter into valuations of fine art beyond pure aesthetic appeal. Among theprinciples which may affect future values of items are the basic economic principles ofsupply and demand, national and international legislation, the global monetary market,social attitudes, and design trends. However, based on an analysis of the market since2000 and an optimistic presumption of a future relatively stable growth, it could beconcluded that certain areas have and will appreciate at a greater rate than others.After several disastrous seasons in the early 1990s, values in the works of first andsecond tier Contemporary artists have stabilized; with some significantly increasing invalue. As expected, the best pieces have and will always fetch premium prices vs.mediocre pieces.Contemporary art is always difficult to value since an artist’s work must stay on thecutting edge in order to remain contemporary. Additionally, an artist must retain agallery presence to sustain his values. In the case of Famous artist, during hislifetime, he had been successful at keeping his style “fresh” and at maintaining agallery presence. His work is respected by museums, critics, and art historians. Hiswork continues to sell at both a gallery and auction level. His auction prices havesignificantly risen in the past five years, catching up to his prices at the gallerylevel - a feat many contemporary artist’s fail to accomplish.The MMMMM suite is an interesting work as it is of interest to a variety of collectors,yet the appraiser is unable to find it marketed in the appropriate marketplace.Obviously, it has significance to the art collector, but it is also a desirable piece ofinterest to a -------- collector and a historical artifact collector. If appropriatelymarketed, this suite would have significant value, particularly given its provenance formthe collection of the former Important Person.Notes: This appraiser does not guarantee any prices or predictions for values in thefuture.Fair Market Value is referred to as “FMV” throughout this report. FMV includes buyer’spremium as indicated in the 1992 TAM ruling.


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TOTAL VALUE118

FAIR MARKET VALUE OF DONATION $000.00

GRAND TOTAL $ 000.00


According to the Bid it Up auction catalogue of Modern and3Contemporary Works of Art, January 12, 2003, lot 121 (Exhibit 4)Vincent Van Went, the Assistant Curator of Western Art at the Famous4University Art Museum, email dated October 1, 2008 (Exhibit 2)Modern and Contemporary Works of Art, Bid it Up Auction, Anytown,5Anystate Sale - January 12, 2003 Lot 121 (Exhibit 4)Vincent Van Went, the Assistant Curator of Western Art at the Famous6University Art Museum, email dated October 1, 2008 (Exhibit 2)17

DONATED ITEM NUMBER ONEXXXXXXXXArticle AppraisedNumber Value Description 1. $ 000.00 Title : XXXXXXXX119Piece Description : An energetic abstract expressionist composition120showing large bold strokes of color on a dark ground, executed withthick areas of impasto in yellow, white, blue, and grey on a blackground

Medium : Magna acrylic on canvas121Artist : Famous artist (American, 1923 - 1996)122Date : 1979123Reported markings : Titled XXXXXXXX, dated 1979, and indicated Magna124on verso (Exhibit 4)3Reported canvas size : 257.8 x 720.1 cm (101.5 x 283.5 inches)125 4(28,775.25 square inches)Reported canvas size : 259.1 x 721.4 cm (102 x 284.5 inches)126 5Unframed127Provenance : Bid it Up Auction, Anytown, Anystate Sale - January12812, 2003 Lot 121 (Exhibit 4).Purchase price : Unconfirmed; estimate $30,000-40,000.129Exhibition : Modern and Contemporary Works of Art, Bid it Up130Auction, Anytown, Anystate Sale - January 12, 2003 Lot 121 (Exhibit4).Condition : Good; no significant condition issues (Exhibit 2)131 6Images : Photo 1132


http://www.artnet.com/galleries/Exhibitions.asp?gid=369&cid=1309617 18

Famous artist133(1923 - 1996)Famous artist was a prolific artist who painted throughout his life time. He wasrenowned for his fluid and expressive abstracts. Famous artist was born in Prague in1925, and immigrated to the US and settled in New York in 1942. His artistic careerflourished in the creative atmosphere of New York City where he began exhibiting atvarious galleries. The positive reactions eventually led to successful shows in LosAngeles and Paris throughout the 1960s.Famous artist studied art in his native land before fleeing Nazi Germany in 1942. InManhattan, during the early 1950s, he shared a studio with fellow abstract painter,Equally famous artist. He began exhibiting his Abstract Expressionist paintings at thistime. His work was included in the Ninth Street Show in New York City in 1951, and ingroup exhibitions at the Leo Castelli Gallery, the Stable Gallery, and the Tibor de NagyGallery, among others. After the Ninth Street Show Annual Invitational, exhibitions ofhis work were held at the Stable Gallery throughout the 1950s. The Second New YorkPainting and Sculpture Annual at The Stable Gallery in 1953, included an introductionby Clement Greenberg.In the 1960s he became associated with Color Field painting and Lyrical Abstraction.He was included in Post-painterly Abstraction, a 1964 exhibition curated by ClementGreenberg. Famous artist was a friend of Clement Greenberg, who in turn introduced himto Jackson Pollock and other pivotal artists of the New York School.As his reputation grew, galleries from around the world began to take notice. In the1970s and 1980s, exhibitions of Famous artist paintings were held at influentialgalleries throughout the United States, England, France, and Germany.In the 1970s, Famous artist began expanding in both shape and color in his canvases.This change signaled not only a revolution within Famous artist’ own work, but it markedthe emergence of Famous artist as a key figure amongst the Color Field painters.Previously thought to be a second rate Abstract Expressionist in a milieu that includedsuperstar painters such as Mark Rothko and Helen Frankenthaler, Famous artist now wasa forerunner in color field paintings of the 1970s. In his mural-sized paintings ofthis period, Famous artist created a virtual narrative structure, set against earth-toned grounds that anchor the color fields while simultaneously enabling their motion.These works are exuberant and luxurious, filled with a wide range of radiant light andatmosphere.7As his work increased in size (up to 24 feet wide), his technique became more fluid,bolder, and expressive. During the last three decades of his career, Famous artist hadmore than sixty solo exhibitions around the world. He was represented by the AndreEmmerich Gallery and Knoedler Contemporary Arts in New York for more than thirty years.In 1970 he settled with his family in Vermont, but continued to paint and occasionallystayed in Philadelphia, where his paintings were regularly exhibited.(Continued on Page 18)


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FAM OUS ARTIST(Continued from Page 17)Famous artist’s technique required the use of Magna paint, an oil-based acrylic paint.Magna was originally developed by the paintmakers Leonard Bocour and Sam Golden forMorris Louis. Famous artist would apply thick layers of color over washes, scrubbingthe paint into the unprimed canvas. He used staining, brushing, and other ways ofapplying color. His paintings were generally large in size and scale, but he also madenumerous small paintings as well.Throughout the decades of the 60s, 70s, and 80s, Famous artist taught and lectured atseveral prestigious institutions. They included Dartmouth College, Hanover, NewHampshire (1964); University of Pennsylvania, Philadelphia (1965-1967); and CornellUniversity, Ithaca, New York (1967-1972). He had the longest relationship with theSchool of the Museum of Fine Arts, Boston, where he taught from 1972 to 1989.His work is part of many museum collections which include, the Whitney Museum ofAmerican Art, New York; the Guggenheim Museum, New York; the San Francisco Museum ofModern Art, California; Yale University Art Gallery, New Haven, Connecticut; theSmithsonian American Art Museum, Washington, D.C.; Georgia Museum of Art, Athens,Georgia; Rose Art Museum of Brandeis University, Waltham, Massachusetts; the KemperMuseum of Contemporary Art, Kansas City, Missouri; Newark Museum, Newark, New Jersey;Famous University Art Museum, Famous, New Jersey; the Albright-Knox Art Gallery,Buffalo, New York; the Herbert F. Johnson Museum of Art, Ithaca, New York; the ParrishArt Museum, Southampton, New York; the Portland Art Museum, Portland, Oregon; the Museumof Fine Arts, Houston, Texas; the Boston Museum of Fine Arts, Massachusetts; andMetropolitan Museum of Art, New York.Famous artist was awarded two Guggenheim Fellowships (1969 and 1972) and he alsoreceived the National Council on the Arts Award (1970).


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COMPARABLE SALES AND OFFERINGS FOR XXXXXXXXAUCTION SALES / OFFERINGS134Image goeshere 10/01/08 - Christie’s, NY, lot 19, -----, 1970, a/c, 72 x 72 (5,184square inches), est. $25,000-35,000; sold $43,000 (inc. premium) ($8.29per square inch)Image goeshere 03/01/08 - Christie’s, NY, lot 27, -----, a/c, 1970, 54 x 152 (8,208square inches), est. $25,000-35,000; sold $61,000 (inc. premium) ($7.43per square inch)Image goeshere 01/12/08 - Sotheby’s, NY, lot 72, -----, 1970, 102 x 248 (25,296 squareinches), est. $50,000-70,000; sold $37,000 (inc. premium) ($1.46 persquare inch)Image goeshere 12/28/07 - Christie’s, NY, lot 31, -----, 1980, a/c, 99 x 67 (6,633square inches), est. $25,000-35,000; est. $25,000-35,000; sold $38,400(inc. premium) ($5.79 per square inch)Image goeshere 12/28/07 - Christie’s, NY, lot 35, -----, 1970, a/c, 62 x 116 (7,192square inches), est. $40,000-50,000; sold $38,400 (inc. premium) ($5.34per square inch)Image goeshere 11/12/07 - Sotheby’s, NY, lot 36, -----, 1970, a-magna/canvas, 60 x 162.2(9,732 square inches), est. $25,000-35,000; sold $45,000 (hammer) ($4.62per square inch)Image goeshere 10/15/07 - Sotheby’s, NY, lot 72, -----, 1975, magna/canvas, 72 x 72(5,184 square inches), est. $20,000-30,000; sold $42,000 (inc. premium)($8.10 per square inch)Image goeshere 09/23/07 - Christie’s, NY, lot 24, -----, 1985, a/c, 53 x 116 (6,148square inches), est. 20,000-30,000; sold $54,000 (inc. premium) ($8.78per square inch)Image goeshere 01/12/07 - Christie’s, NY, lot 53, -----, 1975, a/c, 51 x 116 (5,916square inches), est. $8,000-12,000; sold $26,400 (inc. premium) ($4.46per square inch)Image goeshere 12/12/06 - Christie’s, NY, lot 15, -----, 1975, a/c, 68 x 118 (8,024square inches), est. $8,000-12,000; sold $72,000 (inc. premium) ($8.97per square inch)Image goeshere 09/15/06 - Christie’s, NY, lot 24, -----, 1965, o/c, 57 x 89 (5,073square inches), est. $15,000-20,000; sold $47,800 (inc. premium) ($9.42per square inch)Image goeshere 05/12/05 - Christie’s, NY, lot 18, -----, 1975, 96 x 96 (9,216 squareinches), work on canvas, est. $15,000-20,000; sold $57,360 (inc. premium)($6.21 per square inch)


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COMPARABLE SALES AND OFFERINGS FOR XXXXXXXXGALLERY SALES / OFFERINGS135The following large Famous artist works were available at the Famous Art Gallery, NewYork on September 25, 2008

Image goes here -----, 1970Magna acrylic on canvas78! x 195 inches (15307.5 square inches)Asking $140,000 ($9.14 per square inch)Image goes here -----, 1971Magna acrylic on canvas43 x 166 inches (7138 square inches)Asking $115,000 ($16.11 per square inch)Image goes here -----, 1972Acrylic on canvas95 x 256 inches (24,320 square inches)Asking $125,000 ($5.14 per square inch)Image goes here -----, 1973Magna acrylic on canvas74 x 197 inches (14578 square inches)Asking $140,000 ($9.60 per square inch)


This calculates at $4.17 per square inch - less than any of the8comparables) 22

VALUATION FOR XXXXXXXX136The average square inch price for the thirteen (13) large comparables thatsold at auction in recent years was $6.70 per square inch. Applying thisfigure to XXXXXXXX (28,775.25 square inches) sets the value of XXXXXXXX at$000 (28,775.25 x $0 = $000). However, the larger works are moredifficult to sell as their market is limited by the requisite wall space.The auction market is not necessarily the appropriate market for theextremely large Famous artist’ works because they tend to be site specificworks. Work of this size were usually commissioned works. Since theartist died in 1996, it is impossible to ascertain his fees forcommissioned works in the 2008 gallery market.However, the gallery market may be a better, more appropriate marketplaceas there readily available larger works. Works available from the FamousArtist Gallery range from $000-000 (see Page --). The average price persquare inch for these paintings is $00. Applying this figure to XXXXXXXX(28,775.25 square inches) sets the value of XXXXXXXX at $000 (28,775.25 x$00 = $000).Using the average auction and gallery square inch price ($0+ $0 ÷ 2 = $0)would set the value of this work at $0 (28,775.25 square inches x $0 =$0). However, since the larger works are more difficult to sell as theirmarket is limited by the requisite wall space, a discount of 50% isapplied to this figure to establish the 2008 FMV at $0, rounded to $000($0 - 50% = $0, rounded to $000 ).8


The artist may have been Artist #7. Artist #7's work may have been9censured because of a future incident. Details not included in this samplereport.Quote from one of artists. . Details not included in this sample10report.Artist #6 comment11 23

DONATED ITEM NUMBER TWOMMMMMArticle AppraisedNumber Value Description 2. $ 000.00 Title : MMMMM (Cat. Rais. #)137Piece Description : A suite of three (3) colored prints (one printed on138both sides) comprised of various artists’ interpretations of imagery-----. On each sheet are three (3) or four (4) black blank fieldswhere additional ---------could have been placed . Additional9images include simply printed ------------------ by Artist #1, --with three (3) figures by Artist #2, --------- with US images ontransfer photos by Artist #3, ----- featuring the World TradeCenter, Artist #4 -------- images, and ----- image by Artist # 5

Medium : Photo offset lithographs printed in two (2) colors on139watermarked Arches paper.Artists : Artist #1 (American, 1918 - 1988), Artist #2 (American,140born 1945), Artist #3 (American, 1915 - 1995), Artist #4 (American,1928 - 1998), Artist #5 (American, born 1939)Publisher : -------------, Inc., New York141Printer : -----, Brooklyn, New York (assisted by Tom142Gormley)10Date : 1972143Reported markings : One (1) single and one (1) double-sided print144are numbered and dated at lower right, pencil-signed by each artist(except Artist #1 whose signature is blind-stamped) in the blockprovided for signatures; one (1) single-sided print is numbered anddated at lower left, pencil-signed by each artist (except Artist #1whose signature is blindstamped) in the block provided forsignatures11

(Continued)


Cat. Rais. quote12Vincent Van Went, the Assistant Curator of Western Art at the Famous13University Art Museum, email dated October 1, 2008 (Exhibit 2)Knestrick, Walter G. Red Grooms: The Graphic Work. New York: Harry14N. Abrams, 2001, page 302.Vincent Van Went, the Assistant Curator of Western Art at the Famous15University Art Museum, email dated October 1, 2008 (Exhibit 2)24

(Continued)Edition number : 65/85 (from the total edition of 85 plus 10145artist’s proofs)Reported work size : 68.6 x 55.9 cm (27 x 22146inches)12Reported work size : 70.5 x 56.0 cm (27 3/4 x 22 1/16 inches)147 13Reported image size : 61.6 x 50.2 cm (24! x 19 3/4 inches)148 14Unframed149Provenance : Unknown150Condition : Good; no significant condition issues (Exhibit 2)151 15Images : Photos 2-3152


Although both retail sales are from Fall 2008, 9-10 months after the16date of donation, the appraiser does not feel that the market has changed andthe galleries would have the same asking prices in January 2008 as in Fall2008.Based on the conversion rate as of October 2, 2008 (date of research),171£ = $1.992 (per http: //www.oanda.com/convert/fxhistory).25

COMPARABLE SALES AND OFFERINGS FOR MMMMM153AUCTION SALES / OFFERINGS

01/17/2008 - Stockholms Auktionsverk, Stockholm, lot 12, MMMMM, one sheet,est. $1,967; unsold12/26/2006 - Phillips, NY, lot 22, MMMMM, one sheet, est. $1,500-2,000; sold$1,500 (hammer)04/27/2005 - Weschler’s, Washington, D.C., lot 33, MMMMM, one sheet, est.$1,000-1,500; sold $1,495 (inc. premium)

RETAIL SALES / OFFERINGS16October 2008 - Small Gallery, London, MMMMM, one sheet; asking £3,000($5,976)17September 2008 - Not-so-Famous Gallery, Washington, D.C., MMMMM, each sheet;asking $3,500 ($10,500 for three)


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VALUATION OF MMMMM154Many factors enter into the rarity of this suite. Some of these factors arenot generally known/considered to the public, thus finding the appropriatemarket difficult to locate.Aside from the obvious that these signed collaborative works were done bymajor artists demonstrating their current styles, there is an historicalimportance to the type of paper and size of images. Never before had the------ permitted use of their paper to be used for artwork. This gives thework historical significance that may attract not just an art collector, butalso, a ----- collector, or a history buff.Also important to these works are Artist #4's choice of images - the WorldTrade Center. Since September 11 , images of the World Trade Center havethincreased in value. Again, this work would attract the art collector aswell as the history/photography collector.Additionally, these prints record the events of the famous, but short-livedpublisher, a phenomenon important to the history of 20 century art. Thethimportance of this material is substantiated in the fact that the MOMAcurrently holds the famous publisher’s archives.Lastly, given the ----- nature of this work, the provenance is particularlymeaningful. Knowing that this work is from the collection of the formerFamous Person adds to its value.As such, it is unlikely that the listed comparables are true indicators ofthe value of these works. First, the only full set was at a not-so-famousgallery in Washington D.C. When the appraiser called the gallery to discussthese prints, the salesperson was unfamiliar with any of the history orsignificance of the works. Ironically, the only person who recognized therarity and importance of these works was outside of the US at the smallgallery in London.As such, given the unusual nature of the suite, with consideration to theabsence of market recognition, the appraiser is using the gallery in Londonas the best comparable at $5,976 each. However, recognizing that some valueis lost due to the weakness of the American dollar, the values are based on$5,000 each, establishing the 2008 FMV for the three (3) works in MMMMM, tobe $15,000.


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SOURCES155THE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:

_____. Annual Guide to Galleries, Museums, Artists. New York: Art in America,1998 - 2008._____. Uniform Standards of Professional Appraisal Practice and AdvisoryOpinions. 2008-2009 Edition. Washington, D.C.: Appraisal Standards Board,2007.Cattell, Jaques, ed. Who's Who in American Art. New York: R.R. Bowker, 1973 -2004.Named Catalogue Raisonné. New York: Harry N. Abrams, 2002.

THE FOLLOW ING GALLERIES, EXPERTS, AND AUCTION HOUSESWERE SPECIFICALLY CONSULTED:Christie’s, New YorkNew York Fine Art, New YorkNot-so-Famous Gallery, Washington, D.C.Museum of Modern Art, New YorkSmall Gallery, LondonFamous Art Gallery, New YorkAnother Gallery, New YorkPhillips, New YorkBid it Up, AnytownSotheby’s, New YorkStockholms Auktionsverk, StockholmWeschler’s, Washington, D.C.

THE FOLLOW ING INTERNET SITES WERE SPECIFICALLY CONSULTED:www.artfact.comwww.artmuseum.Famous.eduwww.artnet.comwww.artprice.comwww.askart.comwww.gordonsart.comwww.oac.cdlib.org

http://www.oac.cdlib.org

http://www.artnet.com


http://www.artfact.com

http://www.artmuseum.princeton.edu


http://www.artprice.com

http://www.art-sale-index.com

http://www.askart.com

http://www.fahlstrom.com

http://www.gordonsart.com


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1.AAA Elements of a Correctly Prepared Appraisal, #2; AAA #17; IRS Pub. 5612.USPAP 8-2(a)(i); AAA #1; AAA #173.IRS Publication 5614.AAA #175.USPAP 8-2; AAA #66.AAA #177.AAA #178.AAA #179.USPAP 8-3; AAA #310.Pub. 561; AAA #1311.Pub. 561; AAA #1312. USPAP Ethics13.USPAP 8-314.USPAP 8-3; Pub. 56115.USPAP 8-3; AAA #316.AAA #317.USPAP 8-3; AAA #318. AAA #919.AAA #320.USPAP 8-3; Pub. 561; AAA #321.USPAP 8-3; Pub. 56122.USPAP Ethics: Management23.USPAP Ethics: Management; Pub. 56124.USPAP 8-3

http://www.giotto.org


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25.USPAP Ethics: Conduct; 8-2(a)(ii); USPAP 8-3; Pub. 561; AAA #526.Pension Protection Act; IRS Section 6695A27.Pub. 56128.Pub. 56129.USPAP 8-330.USPAP 8-3; AAA #3; Pub. 561; PPA31.USPAP 7-2 (d); USPAP Statement 332.USPAP 8-2; AAA #633.USPAP 8-2; AAA #634.USPAP 8-2(a)(x); AAA35.AAA #1736.USPAP 8-2(a)(ii)37. AAA #1038.Pub. 561; AAA #1039.USPAP 8-2(a)(vi); Pub. 561; AAA #1040.USPAP 8-2(a)(vi); AAA #1041.USPAP 8-2(a)(ii); AAA #3; Pub. 56142.USPAP 8-2(a)(ii); Pub. 561; PPA43.USPAP 8-2(a)(ii); AAA #13; Pub. 56144.USPAP 8-2(a)(ii); AAA #10; Pub. 561; PPA45.AAA IV46.USPAP Scope of Work Rule; AAA #447.USPAP Scope of Work Rule; AAA #448.USPAP Scope of Work Rule; 8-2(a)(I); 8-2(a)(ix); AAA #4; Pub. 561


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49.USPAP Scope of Work Rule; 8-2(a)(I); AAA #4; Pub 46150.USPAP Scope of Work Rule; 7-2(e)(iv); 8-2(a)(iv); AAA #4; Pub 46151.USPAP Scope of Work Rule; 8-2(a)(ii); AAA #4; Pub 46152.USPAP Scope of Work Rule; 8-2(a)(I); AAA #4; Pub 46153.USPAP Scope of Work Rule; Pub 46154.USPAP Scope of Work Rule; 8-2(a)(vi); AAA #4; Pub 46155.USPAP Scope of Work Rule; 7-2(e)(iv); 8-2(a)(iv); AAA #4; Pub 46156.USPAP Scope of Work Rule; 7-2(e)(iii); AAA #4; AAA #12; Pub. 56157.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #1258.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #1259.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #1260.USPAP Scope of Work Rule; 7-2(e)(iii); AAA #4; AAA #1261.USPAP Scope of Work Rule; 7-2(c)(iv); AAA #4; AAA #1262.USPAP Scope of Work Rule; 7-2(e)(iii); 8-2(a)(v); AAA #4; AAA #1263.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #1264.USPAP Scope of Work Rule; AAA #11; Pub. 56165.USPAP Scope of Work Rule; 8-2(a)(x); AAA #4; AAA #1266.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #4; AAA #1267.USPAP Scope of Work Rule; AAA #11; Pub. 56168.USPAP Scope of Work Rule; 7-2(e)(I); AAA #4; IV; Pub. 56169.USPAP Scope of Work Rule; 7-2(e)(ii) & (iii); AAA #4; Pub. 56170.USPAP Scope of Work Rule; 8-2; AAA #471.USPAP Ethics: Confidentiality; Scope of Work Rule; AAA #4; Pub. 561; GrammLeach Bliley Act72.USPAP Scope of Work Rule; 8-2(a)(v); AAA #4; Pub. 561


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73.USPAP Scope of Work Rule; 8-2(a)(ix); AAA #4; Pub. 56174.USPAP Scope of Work Rule; 8-2(a)(v); AAA #4; Pub. 56175.USPAP Scope of Work Rule; 8-2(a)(v); AAA #476.USPAP Scope of Work Rule; 7; 8; 8-3; AAA #4; Pub 86177.USPAP Scope of Work Rule; AAA #4; IV78.USPAP Preamble; AAA #12; IV79.USPAP Preamble; Scope of Work; AAA #1280.USPAP Preamble; 8-2(a)(ii); AAA #12; Pub. 56181.USPAP 8-2(a)(viii); AAA #7; Pub 86182.USPAP Preamble; 8-2(a)(v); AAA #12; Pub. 56183.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 56184.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 56185.USPAP Preamble; 8-2(a)(ii); AAA #12; Pub. 56186.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 56187.USPAP Preamble; 8-2(a)(I); AAA #12; Pub. 56188.USPAP Preamble; 8-2(a)(ii); AAA #1289.AAA #12; Pub. 56190.USPAP Preamble; AAA #12; 7-2(e)(iii); 8-2(a)(v)91.USPAP Preamble; AAA #12; 7-2(e)(iii); 8-2(a)(v)92.USPAP Preamble; AAA #1293.USPAP 8-3; AAA #12; Pub. 56194.USPAP Preamble; 8-2(a)(vi); AAA #1295.USPAP Preamble; 8-2(a)(v); AAA #1296.USPAP Preamble; 8-2(a)(viii); AAA #12


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97.USPAP Preamble; 8-2(a)(ix); AAA #1298.USPAP Ethics; 8-3; AAA #12; Pub. 56199.USPAP 8-3; AAA #12; Pub. 561100.USPAP Ethics; Scope of Work Rule; 8-2(a)(x); AAA #12101.USPAP Scope 8-3; AAA #12; PPA102.USPAP Ethics; AAA #12; Pub. 561103.USPAP 8-3; AAA #12; Pub. 561104.USPAP 8-3; AAA #12; Pub. 561105.USPAP 8-2(a)(vii); 8-3; AAA #12; Pub. 561106.USPAP 8-3; AAA #12; Pub. 561107.USPAP Preamble; AAA #12108.USPAP Preamble; AAA #12109.USPAP 7; 8-2(a)(vii); AAA #12110.USPAP Preamble; AAA #12111.USPAP Preamble; AAA #12112.USPAP Preamble; AAA #12113.USPAP Preamble; Ethics: Record keeping; AAA #12114.USPAP Preamble; 8-3; AAA #12115.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #12; Pub. 561116.USPAP Scope of Work Rule; 8-2(a)(viii); AAA #12; Pub. 561117.USPAP Ethics: Record keeping; AAA #12118.USPAP Preamble; AAA #12; Pub. 561119.USPAP 8-2 (a)(iii); AAA #11; Pub. 561120.USPAP 8-2 (a)(iii); AAA #11; Pub. 561


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121.USPAP 8-2 (a)(iii); AAA #11; Pub. 561122.USPAP 8-2 (a)(iii); AAA #11; Pub. 561123.USPAP 8-2 (a)(iii); AAA #11; Pub. 561124.USPAP 8-2 (a)(iii); AAA #11; Pub. 561125.USPAP 8-2 (a)(iii); AAA #11; Pub. 561126.USPAP 8-2 (a)(iii); AAA #11; Pub. 561127.USPAP 8-2 (a)(iii); AAA #11; Pub. 561128.USPAP 8-2 (a)(iii); AAA #11; Pub. 561129.USPAP 8-2 (a)(iii); AAA #11; Pub. 561130.USPAP 8-2 (a)(iii); AAA #11; Pub. 561131.USPAP 8-2 (a)(iii); AAA #11; Pub. 561132.USPAP 8-2 (a)(iii); AAA #11; Pub. 561133.USPAP 8-2 (a)(iii); AAA #16; Pub. 561134.USPAP 8-2 (a)(viii); AAA #16; Pub. 561135.USPAP 8-2 (a)(viii); AAA #16; Pub. 561136.USPAP 8-2 (a)(viii); AAA #16; Pub. 561137.USPAP 8-2 (a)(viii); AAA #11; Pub. 561138.USPAP 8-2 (a)(viii); AAA #11; Pub. 561139.USPAP 8-2 (a)(viii); AAA #11; Pub. 561140.USPAP 8-2 (a)(viii); AAA #11; Pub. 561141.USPAP 8-2 (a)(viii); AAA #11; Pub. 561142.USPAP 8-2 (a)(viii); AAA #11; Pub. 561143.USPAP 8-2 (a)(viii); AAA #16; Pub. 561144.USPAP 8-2 (a)(viii); AAA #16; Pub. 561


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145.USPAP 8-2 (a)(viii); AAA #16; Pub. 561146.USPAP 8-2 (a)(viii); AAA #16; Pub. 561147.USPAP 8-2 (a)(viii); AAA #16; Pub. 561148.USPAP 8-2 (a)(viii); AAA #16; Pub. 561149.USPAP 8-2 (a)(viii); AAA #16; Pub. 561150.USPAP 8-2 (a)(viii); AAA #16; Pub. 561151.USPAP 8-2 (a)(viii); AAA #16; Pub. 561152.USPAP 8-2 (a)(viii); AAA #16; Pub. 561153.USPAP 8-2 (a)(viii); AAA #16; Pub. 561154.USPAP 8-2 (a)(viii); AAA #16; Pub. 561155.AAA IV

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USPAP DOES NOT DICTATE FORM, FORMAT OR STYLE

APPRAISER’S LETTERHEADCONTACT INFO Dr. Diane Pill and Mr. Justin Case2008 “RETAIL REPLACEMENT VALUE” INSURANCE SUMMARY APPRAISAL REPORT PAGE 1 OF 34

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APPRAISERS’ CERTIFICATIONAPPRAISAL COMPANY NAME is a registered firm of appraisers qualified to appraiseresidential contents, fine art, antiques, and jewelry. APPRAISER’S NAME, AAA,(Fine Art Appraiser) examined and photographed all articles. She closelyexamined and appraised the articles of fine art, silver, and china. ---- -. ----- (Decorative Art Appraiser) examined and appraised all articles of furniture andrugs. -------- ------, ---. assisted in the examination and the appraisal of theFine and Decorative art. ---- -----, GG examined and appraised all items ofjewelry.Valuation is based solely on personal research and analysis of comparative marketdata as performed by the appraisers and office assistants at APPRAISAL COMPANYNAME. No other party was significant in the valuation of the appraised property.Although the statements of fact contained in this report are true and correct,the reported analyses, opinions, and conclusions are limited only by the reportedassumptions, extraordinary assumptions, limiting conditions, and hypotheticalconditions. The values expressed herein are based on the appraisers’ bestjudgement and opinion and are not representations or warranties that the itemswill realize that value if offered for sale in an appropriate market within theUnited States.The appraisers, without any past, present, or contemplated future interest orbias which might tend to prevent a fair and objective appraisal declare thecurrent retail replacement value of each item.Compensation for this appraisal is not contingent upon the arrived valuation.Fee is based on an hourly rate plus expenses. No person, group, or organizationwas given a fee in connection with the procurement of this appraisal assignment.Further, compensation is not contingent upon the reporting of a predeterminedvalue or direction in value that favors the cause of the client, the amount ofthe value estimate, the attainment of a stipulated result, or the occurrence ofa subsequent event.The objective of this report is to provide an unbiased retail replacement valueguideline and a basis for insurance portfolio evaluation.Photographs, when included, are for reference in the event of a claim under aninsurance policy.This is a partial contents appraisal. Appraisers only appraised articles of Fineand Decorative Art and Jewelry as designated by the client.This report has been written according to the rules of the 2008-2009 USPAP(Uniform Standard of Professional Appraisal Practice). This appraisal isconsidered to be a “current” summary appraisal report.(Continued on Page 2)

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APPRAISERS’ CERTIFICATION(Continued from Page 1)Although these certification pages include salient information regarding themethodology of the report, additional information regarding the scope of work,assignment conditions, and disclaimers are important to understand the entireappraisal process. As such, the entire report is required to fully understandthe assignment and this certification page encompasses the entire report and isnot valid without reading and understanding the entire report.Total pages of report: Total number of articles appraised: Total number of photographs: Examination dates: March 28 and June 1, 2008Research dates: March 29 - August 1, 2008Effective valuation date: June 1, 2008Issue date of the report: August 1, 2008

APPRAISER’S NAME, AAA ---- -. -----Appraisers Association of America, Appraisers A s s o c i a t ion ofAmerica,Certified Member (Fine Art, silver, porcelain) Member (Decorative Art) ---- ----- GG (Jewelry)Graduate Gemmologist

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CV’s for each appraiser who signs the report

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TABLE OF CONTENTSAppraisers’ Certification Page 1Appraisers’ Qualifications Pages 2a - 2cFIRST APPRAISER’S NAME, AAA Page 2SECOND APPRAISER’S NAME Page 2aTHIRD APPRAISER’S NAME Page 2cTable of Contents Page #Scope of Work: Appraisal Method and Definition of Value Pages # - #Explanation of Authorship and Attribution Page #Disclaimers, Limiting Conditions and Assumptions Pages # - ##Market Analysis Page ##Total Value Page ##Schedule of Fine ArtArticle 1 - # Pages ## - ##Sources Pages ## - ##References Books and Price Guides Page ##Galleries, Experts, Auctions, Retail Stores Page ##Internet Sites Page ##

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUEPROBLEM TO SOLVE: The appraisers were asked to provide a current retailreplacement value for a collection of fine and decorative art for insurancepurposes. With the client’s approval/permission, this appraisal report will besent to his designated insurance company. This report is not valid for any otherpurpose.CATEGORY OF ITEM S EXAM INED: Late 19 and 20 century art, craftsman and antiqueth thfurniture, rugs, silver, china, and art glass.CLIENT: Owner of the artwork, Dr. Diane Pill and Mr. Justin Case.OW NER OF THE ARTW ORK: The client, Dr. Diane Pill and Mr. Justin Case.OW NERSHIP INTEREST / ART LOSS REGISTER: The question of title was not an issue.Client provided the appraisers with detailed invoices for major works. Theclient did not feel it necessary to perform Art Loss Register inquiries for theother works.AUTHENTICITY: Although the appraisers are not authenticators, the appraisers hadno reason to doubt the authenticity of the works, except as noted and appraisedaccordingly.EFFECTIVE DATE OF APPRAISAL: Values expressed in this appraisal are effective on themost recent examination date, June 1, 2008.USE OF APPRAISAL: Insurance.USER(S) OF APPRAISAL: This appraisal can be used and relied upon by the client anda designated insurance company / agent / broker / underwriter / adjustor. Anyother user is considered an unintended user.GENERAL ASSIGNM ENT CONDITIONS: The appraisers were allowed adequate time to examine,photograph, and research the articles listed herein.Appraisers were given significant documentation for some articles and nodocumentation for other articles.SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS): The appraisers assume the mediums to beas represented. Specific mediums were not tested as they are not pertinent tothe appraised value of these works.SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS): Appraisers were provided withsome primary documentation for these works. The appraisers assume thisinformation is accurate and correct.The appraisers assume the verbal information provided by the client to becorrect.Information concerning provenance or sales history on certain articles was notmade available to the appraisers. Provenance may play a significant role invaluation and is not considered in this report.(Continued on Page 6)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)The appraisers assume the works described and pictured herein are the pieceswhich are the subject of this appraisal and covered under the client’s insurancepolicy. The appraisers assume that these articles are not now nor will ever besubstituted with other articles by the client in the event of a loss.The appraisers assume authorship to be authentic, including signatures to be bythe named artists.Natural gemstones are processed from the time they are extracted from the earthby one or more traditionally accepted methods. Therefore, unless otherwisestated, all colored stones are presumed to have been subjected to a stable andpossibly undetectable color/clarity enhancement process. Value conclusions arebased on these universally practiced and accepted processes.All pearls are assumed to be cultured or “farmed”, unless accompanied bydocumentation supporting a natural origin.Marks on objects (trademarks, signatures, maker’s marks, serial numbers) mayaffect the value of a piece. For the purpose of this appraisal, the appraisersassume that all markings are authentic, unless otherwise indicated (This is alsoconsidered a Limiting Condition).The appraisers are not authenticators. As such, in certain cases the appraisersmay recommend authentication a specific marks, age, or authorship.Authentication of this nature is not the responsibility of the appraisers (Thisis also considered a Limiting Condition).The appraisers assume the client retains full title to works.The appraisers assume these works were previously traded in an appropriate marketwithout any unusual market stimuli affecting its sale or transaction.SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIO NS): This report is limited to theinformation provided by the client (This is also considered an ExtraordinaryAssumption).The appraisers did not remove all works from the wall due to their size orlocation. The appraisal is limited by what appears on the recto (This is alsoconsidered an Extraordinary Assumption). Works not examined on verso will beidentified as such in the individual descriptions.The appraisers did not remove any paintings or prints from their mattes and/orframes to check for signature, markings, and condition. The appraisal is limitedby what appears within the mattes and/or frames (This is also considered anExtraordinary Assumption).Only when physically possible and not evasive did the appraisers examine underthe upholstery for signature, markings, and conditions (when applicable). Theappraisal is limited by what appears on the surface (This is also considered anExtraordinary Assumption).(Continued on Page 7)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)Only when physically possible, did the appraisers examine undersides and backrails of furniture for signatures and condition (when applicable) (This is alsoconsidered an Extraordinary Assumption).Only when physically possible, did the appraisers remove drawers to examine forsignatures (when applicable) (This is also considered an ExtraordinaryAssumption).Only when physically possible, did the appraisers move heavy furniture tothoroughly examine for signatures and condition (when applicable) (This is alsoconsidered an Extraordinary Assumption).Only when physically possible, did the appraisers lift stone slabs atop furnitureto examine for signatures and condition (when applicable) (This is alsoconsidered an Extraordinary Assumption).The appraisers did not examine or test the workings of clocks for accuracy andprecision (when applicable) (This is also considered an ExtraordinaryAssumption).Chandeliers and sconces were not removed from the ceiling/wall to examine forsignatures or markings (This is also considered an Extraordinary Assumption).The appraisers did not examine each globe/crystal on chandeliers/sconces/lightingfixtures for signature or condition (This is also considered an ExtraordinaryAssumption).The appraisers did not examine each works under mounts or protective bases if notreadily removable for signature or condition (This is also considered anExtraordinary Assumption).The appraisers did not examine or test electrical works for safety and / orcondition of the wiring (This is also considered an Extraordinary Assumption).The appraisers did not test any metals for the silver/gold content. Theappraisers relied on the validity/authenticity of the silver/gold markings (Thisis also considered an Extraordinary Assumption).The appraisers did not remove any stones from their mounts. The weight, grade,color, and clarity may be limited by the “in mount” examination. As such, thisappraisal is limited by what appears within the mount (This is also consideredan Extraordinary Assumption).The appraisers may be unable to ascertain the origin of pearls due to limitationsof portable equipment. As such, in some cases, expert analysis and X-rayprocedures may be recommended, Determination of pearl origin is not theresponsibility of the appraisers (This is also considered an ExtraordinaryAssumption).(Continued on Page 8)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)When examining diamonds and colored stones, every reasonable effort has been madeto determine the existence of a fracture filling, clarity, or color enhancementprocess. However, no binding representation can be made in all circumstances asto the existence or nonexistence of such process. Enhancement procedures areoften undetectable through the use of a standard portable laboratory. Detectionof enhancements is limited by the gemological equipment used (This is alsoconsidered an Extraordinary Assumption).The appraisers are not conservators or jewelry repair technicians. As such, theydid not prepare a condition report. This report is limited by the appraisers’visual inspection. No other condition report was supplied (This is alsoconsidered an Extraordinary Assumption).When examining diamonds and colored stones, every reasonable effort has been madeto determine the existence of a fracture filling, clarity, or color enhancementprocess. However, no binding representation can be made in all circumstances asto the existence or nonexistence of such process. Enhancement procedures areoften undetectable through the use of a standard portable laboratory. Detectionof enhancements is limited by the gemological equipment used (This is alsoconsidered an Extraordinary Assumption).The appraisers are not conservators or jewelry repair technicians. As such, theydid not prepare a condition report. This report is limited by the appraisers’visual inspection. No other condition report was supplied (This is alsoconsidered an Extraordinary Assumption).SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS): No Hypothetical Conditionsexist.EXAM INATION AND M ETHOD OF EXAM INATION OF FINE AND DECORATIVE ART: The appraisers examinedthe works in the client’s home in Greenwich, Connecticut, under daylight,incandescent light, and/or a halogen flashlight. An ultra-violet light was notused as the environment was not properly conducive for such examination.When appropriate, the appraisers examined certain objects with a 5/7/20Xmagnification optical quality loupe.The appraisers were able to ascertain medium, style, and quality of works frompersonal examination, referencing photographs, supporting documentation, andpersonal research.The appraisers measured most works. Measurements are given to the nearest 1/8inch; height precedes width unless otherwise stated. On certain large works, theappraisers accepted the information from the receipts, if available. Works notmeasured by the appraisers will be identified as such in the individualdescriptions.No condition report was supplied. The appraisers assigned each piece a generalcondition comment - good, fair, or poor - and a qualification when appropriate.“Condition” refers to what is considered generally acceptable, with ordinary wearand tear for its type, unless otherwise noted.(Continued on Page 9)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)M ETHOD OF EXAM INATION OF JEW ELRY: APPRAISER’S NAME, AAA, briefly examined the itemsin the client’s home in Greenwich, Connecticut, under daylight whilephotographing the collection.The gemmologist, ---- -----, more thoroughly examined and evaluated the items inthis appraisal by using the accepted standards of the jewelry industry and thoseof the Gemmological Institute of America. Data was collected “on site” and inaccordance with those standards by using careful observation and professionalequipment. Items were examined through one or more of the followingdevices/equipment: a portable Gemmological laboratory, an American Optical 570Binocular Microscope with 10x-63x magnification, 10x loupe, a fiberoptic probeilluminator (with monochromatic filter), long and short wave ultraviolet (UV)fluorescence, Rayner Refractometer, dichroscope, spectroscope, electronic scales,leveridge gauge, G.I.A. Gem Set, Gem Dialogue Color Comparison, Diamond GradingLight Source, G.I.A. diamond master comparison stones, and a metal testing kit.The quality grade of any gemstone is restricted by various types of mountings,settings, and lighting conditions. This quality grade of any gem may differ ifit is removed from a mounting and/or examined under a different light source.However, in order to standardize the examination environment, the jewelryindustry has prescribed the use of “special” lighting. The prescribed lightsources were used in this examination. This includes both a diamondlite (northdaylight equivalent) and a fiber optic probe (monochromatic light source).Additionally, when appropriate, long/short wave (UV) fluorescence was used to aidin the authentication of diamonds and colored stones.Metal quality of finished jewelry cannot be conclusively established by thegemologist appraiser. Common industry practice suggests that metals beidentified by acid testing, test needles and rub stones as well as confirming theauthenticity of identification marks. The designer and/or manufacturer of agiven piece of jewelry may be identified by extensive research and theauthentication of trademarks, hallmarks, and maker’s marks.The gemologist appraiser was able to ascertain material, style, size, and qualityof workmanship from his personal examination, referencing photographs, andpersonal research.Each work has been measured. All measurements are approximate. Measurements aregiven to the nearest mm/gram. Unless otherwise stated, the weights of allmounted gemstones are estimated by using accepted gemological formulas, andshould be within the accepted limitations of that method. Although state-of-the-art gemological equipment is used, the actual weight of gemstones when unmountedmay be different from the estimated wight by formula (This is also considered anExtraordinary Assumptions and Limiting Condition).No jewelry condition report was supplied. The gemmologist appraiser assignedeach piece a general condition comment - good, fair, or poor - and aqualification when appropriate. “Condition” refers to what is consideredgenerally acceptable, with ordinary wear and tear for its type, unless otherwisenoted.(Continued on Page 10)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 9)PHOTOGRAPHY: APPRAISER’S NAME, AAA took 35mm photographs of the works. Nomodifications or alterations were made to the appraisers’ photographs.M ETHOD OF RESEARCH: Research was conducted in the offices of COMPANY NAME. Theoffice is equipped with an extensive library of more than 10,000 research booksand auction catalogues. Additional research was conducted on the internet usingstandard search engines as well as pricing data bases to which COMPANY NAMEsubscribes (including ArtNet, ArtFact, ArtPrice, Prices for Antiques, AskArt,Gordonsart, Invaluable, and Antiqueclockspriceguide). Appropriate galleries andauction houses were contacted for information when necessary. Minimal outsidelibrary/museum research was conducted for this specific appraisal. Specificsources and internet sites are listed at the end of the report.TYPE OF APPRAISAL: This report is considered to be a “current” summary appraisalreport according to the rules of 2008-2009 USPAP (Uniform Standard ofProfessional Appraisal Practice).Comparable sales history is not included in the report. However comparable saleinformation is kept in the client’s file in the offices of COMPANY NAME and isavailable for the client or the insurance company (with the client’s permission)to examine upon request.This information will be kept by COMPANY NAME for a minimal period of five (5)years after the date of issue or two (2) years after final disposition of anyjudicial proceedings involving the appraisers, whichever period expires last.APPROACH TO VALUE: The appraisers named on the cover page of this document hasemployed the "market comparison" approach to arrive at the appraised "retailreplacement value". The "income" approach and the "cost" approach are notapplicable to this particular appraisal.M ARKET EXAM INED: The "market comparison" approach analyzes recent sales ofcomparable articles at major international and regional fine art auctions,private and public sales, shows and exhibitions, as well as prevailing prices atretail shops and galleries where the article may normally be traded. For thisparticular appraisal, the appraisers primarily examined the international fineart gallery and auction markets. Adjustments are then made for each articlewhich consider age, condition, rarity, artistic merit, technical workmanship,current trends and availability of an article as compared to such recent sales.TYPE OF VALUE USED: Retail replacement value.DEFINITION OF VALUE: Appraised "retail replacement value" is defined as the highestamount in terms of US dollars that would be required to replace a property withanother of similar age, quality, origin, appearance, provenance, and conditionwithin a reasonable length of time in an appropriate and relevant market. Whenapplicable, sales and/or import tax, commissions and/or premiums are included inthis amount.(Continued on Page 11)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 10)SOURCE FO R DEFINITION OF RETAIL REPLACEM ENT VALUE: New York University AppraisalStudies Program, Fall 2006.USPAP COM PLIANCY: The report was written by APPRAISER’S NAME, AAA whose USPAPqualification with the AAA is valid until 2009.This appraisal report follows the guidelines of USPAP in that the report providesall of the necessary information/analysis to satisfy the “current” reportdevelopment requirements as defined in Standard 7 (Personal Property,Development) and the writing requirements of a Summary Appraisal as defined inStandard 8 (Personal Property, Reporting).

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EXPLANATION OF SILVER, GOLD, SILVERFINE ART BREAKABLE (SFAB), AND SILVER FLATWARESilver - Only articles marked with a sterling standard (925/1000 or greater), the wordsterling, or have been scientifically proven to be sterling, will be described assterling silver. Articles with some other silver standard (Continental - 800/1000 orgreater, coin, seven metal), or have proven to be silver of a certain standard, will beidentified accordingly.Gold - Only articles marked 10K, 14K, 18K, 24K, or have been scientifically proven to begold, will be described and identified accordingly as gold.All weights have been determined by use of Troy or pennyweight scales.Current spot silver and gold prices on the New York market are a factor in thedetermination of appraised value of contemporary silver. Adjustments are then made foreach article after considering age, condition, rarity, artistic merit, technicalworkmanship, current trends, and availability of an article.Gold items with a fine art, antique, or rare value are indicated in the report as"(GOLD)". This indication is directly under the article number.(SFAB) - Silver or gold items with breakable parts are known as Silver Fine ArtBreakables and are indicated in the report as "(SFAB)". This indication is directlyunder the article number.Antique silver - Items of antique silver, silverplate, and gold are included in theSchedule of Fine Art rather than in a Schedule of Contemporary Silver, Silverplate, andGold. Antique silver, silverplate, and gold items include such items of rare andhandmade nature. These items are not usually readily available on the primary market.Flatware qualifications - Values used in flatware appraisals are based on rarity ofpattern and collectibility of the item. Certain patterns increase in value after theyhave been discontinued because of their rarity, however others may decrease, dependingon current styles and tastes. Certain articles have become obsolete in the 21 centuryst(i.e., sardine forks, ice cream forks), however, are highly collectible due to theirlimited production and “quirky functions. As such, these pieces have a great collectablevalue over standard pieces. The following explains the availability of manufacturedsilver:Active pattern: Active pattern readily available and easily obtainable on the retailmarket.Inactive/discontinued pattern: Pattern not currently in production, however can beproduced with a special order.Obsolete pattern: Pattern which is no longer available from the manufacturer, the dieshave been destroyed, or the manufacturer no longer in business.Closed pattern: Limited edition pattern and is no longer available.Unknown pattern: Appraisers unable to ascertain availability of pattern; owner of diesunknown.

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EXPLANATION OF FINE JEWELRYDEFINITION OF TERMSDIAMONDS AND COLORED STONESAll articles of fine jewelry with major stones are examined by a Graduate Gemmologist andwill be described and identified accordingly. Articles of vintage and/or collectiblejewelry are examined by an antiques appraiser and valued as antiques rather than theirvalue in materials. Diamond and colored stones are valued based on the followingcriteria when significant: CARATCarat is the measure of weight, not the size of the stone. It is a small unit ofmeasure equal to 200 milligrams. The word "carat" is derived from “carob”, the treewhose seeds became the standard for measuring diamonds. A 1 carat diamond is made upof 100 units called "points". Therefore, a 50 point diamond is a ! carat or .50 carat.(“Carat” in reference to the weight of a stone should not be confused with "karat" inreference to gold.)COLORDiamonds are assigned a color grade based upon the amount of body color exhibited whencompared to a set of Master Color Diamonds which have been color-graded and registeredby the GIA Gem Trade Laboratory. In most cases, diamonds are graded using astandardized light source equivalent to daylight.The color grading scale is as follows: D E F ! G H I J ! K L M ! N O P Q R ! S T U V X Y Z !Z+ COLORLESS NEAR FAINT VERY LIGHT YELLOW LIGHT YELLOW FANCY COLORLESS YELLOW YELLOW CLARITYClarity is an indication of a diamond's purity. Clarity is determined by the overallnumber, size, and location of inclusions (flaws). The U.S. Federal Trade Commissionestablished the jewelry industry's standards for diamond clarity based on 10-powermagnification. As such, the appraiser assigned diamonds a clarity grade based uponexamination under a 10x binocular microscope equipped with dark field illumination.The clarity grading scale is as follows:

FLAWLESS I.F. VVS"" VVS# VS" VS# SI" SI# I" I# I$INTERNALLYFLAWLESS VERY VERY SLIGHTLYINCLUDED VERY SLIGHTLYINCLUDED SLIGHTLYINCLUDED IMPERFECT EYE VISIBLEINCLUSIONSCUTCut refers both to the shape of a diamond and the precise arrangement of its facets.The most popular cuts are Round (AKA Brilliant), Pear, Marquise, Emerald, Oval,Princess, and Heart.


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EXPLANATION OF FINE JEWELRY - DEFINITION OF TERMS(Continued from Page 13)PEARLSAll articles of fine jewelry with pearls are examined by a Graduate Gemmologist and willbe described and identified accordingly. Articles of vintage and/or collectible jewelryare examined by an antiques appraiser and valued as antiques rather than their value inmaterials. Pearls are valued based on the following criteria when significant: SHAPERound - well-matched, globular (most valuable)Half-round - flat bottomsBaroque - irregularFresh water - irregularBODY COLORThere are six main body colors found in pearls: white, cream, pink, golden, black,and green. Pearls are also found in blended color variations such as lavender,silver, and gray. Pearls are ideally graded in natural daylight using a whitebackground. If natural light is unavailable, fluorescent light is the next bestlighting. Color evaluation of pearls is controversial as a value factor. While coloris significant, it is not granted over-importance in the final estimation of value.The evaluation of color is more difficult and rather subjective, as there aresubtleties of market preference based on attitudes of specific clients and regionalpreferences.LUSTERPearls are rated according to the fineness of their luster. Luster is determined bythe intensity of the reflection found on the surface of a pearl which results fromlight striking the surface. Luster is seen on a smooth surface where no ridges arepresent to reflect the light in many directions. The more mirrorlike the surfacereflection of a pearl, the better the quality. In evaluating pearls, the appraiserassigned a luster rating of very good, good, and fair.MATCHMatch is an indication of continuity and quality in a strand of pearls. In a well-matched strand, the pearls are similar in shape and give the viewer the overallimpression of evenness. A well-matched strand is given a higher value considerationthan one of mixed shapes. In evaluating a stand of pearls, the appraiser assigned amatch rating of very good, good, and fair.BLEMISHESBlemishes, or spotting, are the wrinkles, cracks, gaps, bumps, or dull spots on thesurface skin of pearls. The most important criterion for assessing the value of apearl is the perfection of the skin, i.e., the lack of blemishes. As such, theappraiser has indicated any apparent blemishes.

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EXPLANATION OF FINE ART BREAKABLE (FAB)AND BREAKABLE PERSONAL PROPERTY (BPP)Fine Art Breakable and Breakable Personal Property items are indicated inthe report as "(FAB)" or "(BPP)" directly under the article number.Fine Art Breakable (FAB) items include all items of glass, pottery, china,terra cotta, and marble that have a fine art, antique, or collectiblenature.Breakable Personal Property (BPP) items include all items of glass, pottery,china, terra cotta, and marble residential contents that do not have a fineart, antique, or collectible nature.Mirrors are included as Fine Art Breakable (FAB) items if the plate is ofequal or more value than the frame or if a replaced plate would affect thetotal value of the piece.Vintage wine is not considered a Fine Art Breakable (FAB) unless otherwiseindicated. Wine will normally be considered as a Breakable PersonalProperty (BPP) item except in the case of antique wine.

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EXPLANATION OF AUTHORSHIP AND ATTRIBUTIONGLOSSARYA George III mahogany linen pressLate 18th centuryThis heading and date indicate that in the appraisers’ qualified opinion the piece isessentially of the period. Later restorations and alterations are indicated andconsidered in the valuation.A George III-style mahogany linen press19th centuryThe heading and date with the word "style" included indicates that in the appraisers’qualified opinion the piece is an intentional copy of an earlier design. Laterrestorations and alterations are indicated and considered in the valuation.FURNITURE PERIODS AND STYLESDates British Monarch U.K. Period French Period1649 - 1660 Commonwealth Cromwellian Louis XIV (1643 - 1715)1660 - 1685 Charles II Restoration1685 - 1689 James II Restoration1689 - 1694 William & Mary William & Mary1694 - 1702 William III William III1702 - 1714 Anne Queen Anne1714 - 1727 George I Early Georgian Regence (1715 - 1723)1727 - 1760 George II Early Georgian Louis XV (1723 - 1774)1760 - 1811 George III Late Georgian Louis XVI (1774 - 1793)Directoire (1793 - 1799)Empire (1799 - 1815)1812 - 1820 George IV Regency Restauration (1815 - 1830)1837 - 1901 Victoria Victorian Louis Phillippe2 Empire (1848 - 1870)nd3 Republic (1871 - 1940)rd1901 - 1910 Edward VII Edwardian Art Nouveau (1890 - 1920)SIGNATUREWhen a work is signed/dated/inscribed by the hand of the artist/craftsman, the appraiserwill state "Signed/stamped/incised..." exactly as written by the particularartist/craftsman in the specific composition. This means that the appraiser believes thework to be by the "signed" artist/craftsman.When a signature/stamp/seal exists on a work, but the work does not appear to be by thehand of such signed artist, the appraiser will indicate that the work "Bearssignature/stamp of...". This means that the appraiser does not believe the work to be bythe "signed" artist/craftsman.(Continued on Page 17)

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EXPLANATION OF AUTHORSHIP AND ATTRIBUTION(Continued from Page 16)AUTHORSHIP GLOSSARYTITLE - If a generally accepted title for the work exists, that title is given. If thework is untitled or the title is unknown, a descriptive title may be assigned and isindicated with an asterisk (*).When provenance is unknown and a search of reliable sources fails to render informationconcerning a particular artist or work involved, a value determination is based onartistic merit and market conditions.AUTHORSHIP - When a work is unsigned but generally accepted in the scholarly communityto be by a particular artist, that artist's name will be indicated as "Ascribed to...".This is the highest category of authenticity.When a question of doubt concerning authorship prevails, the authorship will beindicated as "Attributed to..." a particular artist or a school.When a signature exists on a work, but the work does not appear to be by the hand ofsuch signed artists, the appraiser will indicate that the work "Bears signature of...".This means that the appraiser does not believe the work to be by the "signed" artist.

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GLOSSARY OF TERMS APPLICABLE TO THIS REPORTabstraction - art which makes no direct, immediate discernible reference torecognizable objects. In abstract art, the formal arrangement of colors andforms is independent of, and more important than, the subject matter.buyer's premium - a percentage of the bid ("hammer") price at an auction;usually 5 - 20%.canvas size - the actual size of a work on canvas where the edges are visible.catalogue raisonné - a scholarly catalogue which should include all the knownworks by an artist at the time of compilation; includes essential informationby which works are identified; the definitive reference book.cradled panel - a restoration method used to support the back of a wood panel;usually constructed in a series of horizontal and vertical wood pieces andapplied to the back of an old panel; keeps wood from serious warping, allowingfor natural expansion and contraction.craquelure - the result of the uneven movements of the canvas caused by thenatural shrinking of the medium on aging; usually appears on the surface in a"spider-web" like series of cracks. Surface can be stabilized by relining thecanvas and restoring the cracks.estimate (est.) - the pre sale dollar amount suggested by an auction house atwhich an object is expected to fetch at auctionexpressionistic - a style of art characterized by distortions of line, shape,and color based on an emotional reaction of the artistgouache - an opaque watercolor. The effects achieved are closer to those ofoil paint than watercolor. A disadvantage of gouache is that it lightens asit drieshammer price - the actual "bid" price at an auction; does not include thepremiumimpasto - paint applied with the consistency of thick pasteimpressionistic - a style of art characterized by discontinuous brushwork oran analytical approach to light on an object where strokes of color blend inthe eye to form the objecto/c - oil on canvaspatinated - a finish often applied to bronzes to add color; usually in green,brown, black, or goldreserve - the agreed upon minimal amount at which an item can be sold atauction(Continued on Page 19)

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GLOSSARY OF TERM S(Continued from Page 18)seller's premium - a percentage of the bid ("hammer") price at an auction;usually 5 - 15%. It is usually more negotiable than the buyer's premium.surmoulage - a cast from a castTAM - Tax Advisory Memorandumterra cotta - a medium used in creating sculptures. It is fired clay, modeledor moulded, and baked until it is very hard. Terra cotta has been used sinceancient times for pottery and sculpture, and as a building material. It maybe coated with a glaze of molten glass, painted, or left untreated.watermark - design left in the paper by the paper manufacturer; seen when heldagainst the light; used to trace the origin of the paper; special markings foran artist or publisher may incorporate a signature or a device; can be used todetect fakes -- although it can be faked.w/c - watercolorwork size - the actual size of a work on board or paper where the edges arevisiblework size (sight) - the visual size of a work on board, paper, or canvas,usually measured in a frame and not knowing the extend of the margins/edgesunder the frameunsold - an artwork that did not sell at auction. The most common reason itemsare unsold is because the item failed to reach its reserve (AKA “buy-in” or“bought-in”). Other reasons an item is unsold could be that the item waswithdrawn based on ownership or authenticity, or that the consigner changedtheir minds.

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONSThis certificate of appraisal is given, subject to the terms and conditionshereinafter set forth, all of which are a part hereof unless expressly set aside inwriting either on the pages of this certificate or by writing attached to thecertificate signed by all parties concerned.This appraisal consists of XX pages and must be presented in its entirety to bevalid.This appraisal is prepared solely for insurance purposes using the comparativemarket approach to arrive at the retail replacement values as of June 1, 2008.It is to be used by Dr. Diane Pill and Mr. Justin Case and solely by them forinsurance purposes. This report can be used by an insurance company / agent /broker / underwriter / adjustor as designated by Dr. Pill and Mr. Case .The client shall indemnify, defend, and hold us harmless from and against anyactions, claims, liabilities or expenses incurred as a result of claims based on orarising from the appraisal, by third parties unrelated to the immediate purpose ofthis appraisal.Unless otherwise stated herein, this certificate is based only on the readilyapparent identity of the items appraised, and no further opinion nor guarantee ofauthenticity, genuineness, attribution, or authorship is made. However, inappraising the subject articles, the appraisers found no reason to question theauthenticity of the articles (See also Scope of Work).Some descriptive information pertaining to the work was supplied by the client,through standard reference material, and the internet. No reported scientificand/or laboratory testing has been performed on any articles.The appraised value is based on the whole ownership and possessory interestundiminished by any liens, fractional interests or any other form of encumbrance oralienation.This certificate is made at the request of the party named for their use. It is notan indication or certificate of title ownership. The identification of the interestof the requesting party is simply that represented to the appraisers by such partyand no inquiry or investigation has been made nor is any opinion given as to thetruth of such representation.The values expressed herein is based on the appraisers’ best judgment and opinionand are not representations or warranties that the items will realize these valuesif offered for sale at an auction or otherwise. The values expressed are based oncurrent information on the assigned effective date stated on the cover page of thisreport. No opinion is hereby expressed as to any future value, nor unless otherwisestated, as to any past value.(Continued on Page 21)

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 20)The appraisers considered the highest and best use of the appraised articles withrespect to the most appropriate, common, and legal marketplace given the purpose ofthe appraisal.The appraisers have no past interest, no present interest, nor any contemplatedfuture financial interest in the appraised property. The appraisers do not have anypersonal interest or bias with respect to the parties involved. This appraisal wasdone objectively and in accordance with the 2008-2009 Uniform Standards ofProfessional Appraisal Practice and the Appraisers Association of America. Further,the appraisers have no other interest which might tend to prevent making a fair andunbiased appraisal.This appraisal was researched and prepared by the appraisers named on the cover pageof this report. Supplemental research was supplied by office assistants and internsat APPRAISAL COMPANY NAME, particularly ----- ----- and ------ ----. No otherperson supplied significant assistance in preparation of this report.Some information regarding provenance was limited to hearsay. Minimal primaryinformation regarding exhibition and literary history of the articles were madeavailable by the client to the appraisers. Any factual and/or hearsay informationprovided by the client is assumed to be correct, however, the appraisers are notresponsible for any errors or misrepresentations on the part of Dr. Pill or Mr.Case.The appraisers did not personally examine any of the comparable sales and/orofferings with regard to these particular works. The appraisers are relying oninformation made available through price databases and gallery inventories regardingauthenticity, condition, and sales information concerning these works.Consulting sources are listed in the back of the report. Information furnished byconsulting sources is assumed to be reliable, but is not guaranteed by theseappraisers or their firm.The appraisers are not required to give testimony, be present in any court of law,or appear before any commission or board by reason of this appraisal, unless priorarrangements have been made with the appraisers. Should this report be challengedin anyway, not limited to litigation, it is understood that the appraisers areprepared to defend their appraisal, if required. Courtroom testimony, mediationproceedings, and the necessary preparation are considered to be separate assignmentsand will be billed at our then current normal hourly rate plus expenses as required.Possession of this report, or copy thereof, does not include the right ofpublication without the written consent of the appraisers and their firm. Thisreport in its entirety, or any part thereof, including the identity of theappraisers or their firm, shall not be made public through advertising, publicrelations, news releases, sales, or other distributive or information media withoutthe written consent of the appraisers and their firm.(Continued on Page 22)

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 21)Copies of this appraisal and notes pertaining to the appraisal, written andelectronic, will be kept in the offices of COMPANY NAME for a minimal period of five(5) years after the date of issue or two (2) years after final disposition of anyjudicial proceedings involving the appraisers, whichever period expires last.APPRAISAL COMPANY NAME will make every effort to store client records in a safe andsecure environment. However the firm is not responsible for acts of war, terrorism,or other such unexpected catastrophes which may affect the safekeeping of thisreport.All matters treating the duties, responsibilities, and liabilities of the appraisersare in accord with the Valuation Standards and Professional Practices as outlinedby the Appraisal Foundation in the 2008-2009 Uniform Standards of ProfessionalAppraisal Practice and the Principles of Practice and the Code of Ethics of theAppraisers Association of America.

© 2009 APPRAISAL COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in aretrieval system or transmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior writtenpermission of APPRAISAL COMPANY NAME and the appraisers' signature.

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MARKET ANALYSISGiven that the art and antique markets are always volatile markets, an overall marketvaluation forecast cannot be established. Particularly with the uncertain politicaland economic situation of the world after September 11, 2001, a market analysis isdifficult to prepare in these uncertain times.However, based on an analysis of the market since 2000 and a presumption of a futurerelatively stable growth, it could be concluded that certain areas have and willappreciate at a greater rate than others. Until this year, American art has been oneof the areas that has been doing quite well on the primary and secondary markets.However, given the current state of the American economy, we have been currentlyexperiencing a dip in the market. This is felt throughout the art market, however,the American market is hit the hardest as most patrons are Americans and cannot lookto the global market for buyers as relied upon by theModern and Contemporary markets.

ArtPrice has compiled indicators for the auction salesof Benton. According to Figure 1, works by Bentonappear to be on a decline. However, because of aweakened economy, collectors are reluctant to selltheir works in this market. Hence no fabulous workshave appeared to teeter the trend. According to thischart, works by Benton are down by 57%. Speaking withgalleries, such as Hirschl and Adler or Spanierman,they dispute this data, saying that there is good artavailable, but one must search for it in thisuncertain economy.Internationally, it has been a different story. The Impressionist and Modern ArtEvening Sale of June 24, 2008 at Christie’s generated £144 million ($284 million), thelargest sales volume ever posted by a European auction.The following day, Sotheby's took £102 million,exceeding its aggregate high estimates by sevenmillion. In New York, during the May sales, Christie’sand Sotheby’s achieved proceeds of $1.2 billion. Worksby Monet, Bacon, and Freud sold in the past few monthshave been snapped up as trophy purchases by TaniaBuckrell Pos or the Russian billionaire RomanAbramovich, serving as barometers for the whole market,as did the works of Renoir and Van Gogh during the 1990speculative bubble. Once again, the high-profileChristie’s and Sotheby’s sales, which represent just1/1000 of global transactions seem to be setting thetone for the broader market. The following chartrepresents activity in French Impressionism relating to your Monet, Renoir, FantinLatour, and Maillol. Note that we are at the levels of the height of the market in1990.(Continued on Page 24)

Figure 1 - TH Benton Activity 1998-2008

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M ARKET ANALYSIS(Continued from Page 23)That said, the confidence indicator for players in the art market has been falling forover a month. Having peaked at +31 points at the end of May following the excellentresults from the May New York sales, this indicator hasgradually turned down…haunted by the ghost of anunprecedented global economic recession. With oil pricessurpassing $140/bbl, the cost of the subprime crisiscontinues to rise, real estate values have droppedpractically everywhere in the world, the financial marketscontinue their relentless correction, inflation is becominggalloping, growth forecasts are looking increasinglypessimistic…Yet for all that, the art market is stillshowing signs of resistance, defying the other poorerperforming sectors of the global economy. In such anenvironment, the million-pound proceeds recorded in thehighly prestigious Christie's and Sotheby's London sales look nothing short ofmiraculous.1Aside form the artwork, much of your furniture is finely made custom furniture orcraft items, which commands high prices in the primary market due to its craftsmanshipand uniqueness. These pieces rarely retain their value on the secondary market,particularly in one’s lifetime. However, these works will undoubtedly be appreciatedin the generations to come.Given your specific collection and based on general and specific market volatilities,these appraisers recommend that a general appraisal update should be conducted in atleast two years to adequately protect yourself for insurance purposes.Please note that the appraisers do not guarantee any prices or predictions for valuesin the future.

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TOTAL VALUESCHEDULE OF FINE AND ANTIQUE SILVER $ -,---.00SCHEDULE OF FINE AND DECORATIVE ART $ ---,---.00SCHEDULE OF FINE ART BREAKABLE (FAB) $ ---,---.00

GRAND TOTAL $ -,---,---.00

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VALUE BREAKDOWN - BY LOCATIONSCHEDULE OF FINE AND ANTIQUE SILVER $ -,000.00Total $ -,000.00SCHEDULE OF FINE AND DECORATIVE ARTEntry Foyer $ ---,000.00Entrance Sitting Room ---,000.00Library Powder Room -,000.00Living Room ---,000.00Dining Room ---,000.00Storage / Dining Room --,000.00Television Room -,000.00Pantry Closet --,000.00Kitchen and Hall --,000.00Loose Posters --,000.00Total $ -,---,---.00SCHEDULE OF FINE ART BREAKABLE (FAB)Entry Foyer $ ---,000.00Entrance Sitting Room ---,000.00Library Powder Room -,000.00Living Room ---,000.00Dining Room ---,000.00Storage / Dining Room --,000.00Television Room -,000.00Pantry Closet --,000.00Kitchen and Hall --,000.00Loose Posters --,000.00Total $ -,---,---.00

Total $ ---,---.00GRAND TOTAL $ 000.00

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SCHEDULE OF FINE ARTFINE ART SILVERArticleNumber AppraisedValue Description1. $ 000.00Piece An American sterling silver footed compote of modern form, theflared circular top raised on a short ringed stem below aspreading circular footTiffany and Company, New YorkAfter 1951Marked Tiffany and Company Makers Sterling Silver 23356MHeight: 4% inches Diameter at top: 12! inchesWeight: 47 troy ouncesCondition: Good.Note: Discontinued. Photo 12. $ 000.00Piece An American sterling silver two (2)-handled presentation tray ofoval shape having a scrolled “C” curve border continuing to formopenwork handles and slightly scalloped border dropping to arecessed bowl; commemorating the service of -------------, signedby six (6) fellow directors, each a prominent member of the worldof finance and business, incised ----------Hampton CourtPattern 666Reed & Barton, Taunton, MassachusettsCirca 2000Marked on verso Hampton Court, Reed & Barton, Sterling X 666Length of tray: 24! inches Width of tray: 17 inchesCondition: Good.Note: Presently located in the Living Room.Photo 2

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APPRAISER’S LETTERHEADCONTACT INFO Dr. Diane Pill and Mr. Justin Case2008 “RETAIL REPLACEMENT VALUE” INSURANCE SUMMARY APPRAISAL REPORT PAGE 28 OF 34FINE ART SILVER

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3. $ 000.00Part service A partial service of American sterling silver flatware, each pieceof a simple form with plain tapered handles and rounded terminalHannah HullTuttle, Boston1927 - 1974Comprising: Per pieceTwelve (12) teaspoons $ 118.00Sixteen (16) salad forks 135.50Four ( 4) luncheon forks 135.00One ( 1) gravy ladle 92.00One ( 1) pierced cranberry/tomato server 92.00One ( 1) pie server 92.00One ( 1) serving spoon 92.00A total of thirty-six (36) piecesCondition: Good.Notes: Pattern was bought from Tuttle by Wallace. Current as aWallace pattern. Earlier Tuttle pieces more valuable thanWallace pieces. Photo 34. $ 000.00Piece An Italian sterling silver bread knife with an open twist sterlinghandle and serrated stainless steel bladePadova by Elsa PerettiDistributed by Tiffany and Company, New YorkAfter 1994Marked Peretti Tiffany & Co. Sterling Italy 1994Overall length: 11 inches Length of blade: 7 inchesLength of handle: 4 inchesCondition: Good. Photo 4

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ENTRANCE AND CENTER HALL GALLERYArticleNumber AppraisedValue Description5. $ 000.00Piece The ----A mixed media bronze sculpture depiction of a seated woman wrappedin a blue cloth, having iridescent eyes, wearing stilettos andholding a round stone with her lapPolychromed bronze and painted fabricK------ L. ------ (American, born 1963)No visible signatureHeight: 22% inches Width: 10! inches Depth: 12 inchesProvenance: Purchased directly from the artist Sale - 1994Condition: Good. Photo 56. $ 000.00Piece An American handcrafted wood abstracted functional standing floorclock, the clock face section in the form of a natural-coloredblossom with gilded hour and minute hands, raised on a flaredstand of polychromed sectionsPrime TimePolychromed wood (Jelutong)----- ----- (American, born 1952)Executed 1996Signed ----- and dated 96 near bottomWork size: 93! x 40 x 21 inchesCondition: Good. Photo 67.(FAB) $ 000.00Piece Pink Basket with WrapA free-blown glass vase decorated with yellow, pink and aubergineglass threads--- --- ------ (American, born 1946)Executed 1998Number ---.--.--Script signed ------ and dated 1998Height: 10 inches Diameter 8 inches20 century period framethLiterature: History unknownCondition: Good. Photo 7

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APPRAISER’S LETTERHEADCONTACT INFO Dr. Diane Pill and Mr. Justin Case2008 “RETAIL REPLACEMENT VALUE” INSURANCE SUMMARY APPRAISAL REPORT PAGE 30 OF 34ENTRANCE AND CENTER HALL GALLERY

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8. $ 000.00Piece A large custom-ordered tufted wool area rug of rectangular shape,the striped field worked in various alternating colors of orange,olive, purple, and blue, some with dentil-form design, within anorange borderSyncopation/melange area rug with Quantum borderLate 20 centuryth15 feet x 6 feet, 11 inches (180 inches x 83 inches)Provenance: ---- Carpet, -----, New JerseySale - February 3, 1995Condition: Good. Photo0

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HALL GALLERYArticleNumber AppraisedValue Description9. $000.00Piece --------A genre scene depicting two (2) women in a canoe on a river,surrounded by cliffs at left and distance and trees on sandyshore at rightEgg tempera on masoniteThomas Hart Benton (American, 1889 - 1975)Executed 1969Signed Benton and dated ‘69 at lower leftWork size: 16 x 20 inches (sight)Reported size: 18 x 23 inchesFramed size: 26 x 31 inches20 century distressed gilt cove-moulded carved wood framethProvenance:Rita Benton (artist’s wife), Kansas CityChristie’s, New York, November --, 19--, lot 1–Unknown owner---- Gallery, New York Sale - April --, 200-Literature:Matthew Biagell, Thomas Hart Benton, New York, 1973, number --Condition: Good.Notes: ---- Gallery label indicates it measures 18 x 23 inches.Starting about 1965, Benton made annual trips to float the ----River with a group of friends from Kansas City. Sometimes hefished or swam, but invariably he carried a sketch pad with him.He painted some of his best late works during this period,including ------- .2Highest price paid at auction for a Benton painting:05/24/06 - Sotheby’S, NY, lot 125, Keith Farm, Chilmark, 1955,o/board, 21 x 29, est. $350,000-550,000; sold $1,808,000Auction comparables:05/24/06 - Sotheby’S, NY, lot 125, Keith Farm, Chilmark, 1955,o/board, 21 x 29, est. $350,000-550,000; sold $1,808,00011/30/05 - Sotheby’s, NY, lot 27, Jon Boat - Buffalo River,o/panel, 12 x 10, est. $100,000-150,000; sold $340,80005/22/03 - Christie’s, NY, lot 80, Shooting the Rapids, 1973, o/c,20 x 24, est. $200,000-300,000; sold $377,100Photo 9??

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http://www.si.edu/Encyclopedia_SI/nmah/guarneri.htm3 32

SCHEDULE OF MUSICAL INSTRUMENTSArticleNumber AppraisedValue Description10. $ 000.00Piece A Continental handcarved violin; together with a later bow andleather caseBears label that is typed Joseph Guarnerius fecit Cremonae anno171019 centurythOverall length: 23 3/8 inchesCondition: Good.Notes: Stradivari and Guarnerius are ranked as the greatest ofviolin makers, and some fine violinists prefer the instruments ofJoseph Guarnerius del Gesu to those of Stradivari. The mostillustrious member of this famous family of violin makers wasBartolomeo Giuseppe Guarneri (Cremona, Italy, 1698 - 1744), thefifth and last member of the family, grandson of Andrea, son ofGiuseppe Giovanni Battista. He is more familiarly known asJoseph Guarnerius del Gesu. Guarnerius is the Latin form of thefamily name and Joseph the Hebrew form of Giuseppe. The additionof "del Gesu" to the name and the Greek abbreviation for Jesus(IHS) beneath a cross on the labels indicate veneration for theHoly Name. The outline of his violins, with slightmodifications, is founded on instruments of Antonio Stradivari.Modeling of the back and table are noticeably flattened,seemingly inspired by Maggini. The F holes are of Stradivariform but are usually elongated, more open, and less refined. Thecarefully applied oil varnish is soft in quality and of lighttexture, with the color varying between pale orange and orange-brown with, occasionally, a reddish tint. The length of the bodyis usually 13 7/8", sometimes 1/16" less. The estimate of histotal production is not more than 250 violins; there is nopositive evidence that he made instruments in any other form,although some violas and at least one violoncello are attributedto him. Approximately 150 violins are known to exist. Cremonae3violins began to be copies in the 1840s by the thousands and soldthroughout the world. Due to the size, age, and quality of thispiece, it is probably a 19 century copy.th Photo

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SOURCESTHE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:

_____. American and European auction catalogues, 1987 - 2008._____. Annual Guide to Galleries, Museums, Artists. New York: Art in America,1995 - 2008._____. Guide to Exhibited Artists: Craftsman. Oxford, England: Clio Press,1985._____. Joichi Hoshi, Catalogue of All Tree Woodblock Prints 1970 - 1979._____. Uniform Standards of Professional Appraisal Practice and AdvisoryOpinions. 2008 - 2009 Edition. Washington, D.C.: Appraisal Standards Board,2007.Adams, Henry. Thomas Hart Benton. New York: Knopf, 1989.Albertu, Rafael. Picasso en Avignon, Editions Cercle d’Art, Paris, 1971.Alden, Aimee Neff. The Collector's Encyclopedia of Early Noritake. Paducah,Kentucky: Collectors Books, 1997.Barry, John W. American Indian Pottery. Florence, Alabama: Books Americana,1984.Biagell, Matthew. Thomas Hart Benton, New York, 1973.Brewer, Robin. Noritake Dinnerware: Identification Made Easy. Atglen,Pennsylvania: Schiffer Publishing Ltd., 1999.Canadian Eskimo Arts Council. Sculpture/Inuit. Toronto: University of TorontoPress, 1971.Carmichael, Suzanne. The Travelers Guide to American Crafts West of theMississippi. New York: Dutton, 1990.Carpenter, Charles H., Jr. with Mary Grace Carpenter. Tiffany Silver. SanFrancisco: Alan Wofsky Fine Arts, 1997.Constable, W. G., ed. Summary of European Paintings, Boston, 1955.Cunningham, C. C. “From Gainsborough to Renoir: Boston Exhibits its New Gift ofthe J.C. Edwards Collection”, Art News, Number 38, December 9, 1939.

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THE FOLLOW ING GALLERIES, EXPERTS, AUCTION HOUSES, AND RETAIL SHOPS, W ERE SPECIFICALLY CONSULTED:Albemarle Gallery, LondonArden Gallery, BostonBonhams & Butterfield, San FranciscoChristie’s, New York and LondonDoyle, New YorkElliot / Brown Gallery, SeattleFoster / White Gallery, SeattleGallery Old Town, San DiegoGodel Fine Art, New YorkHirschl & Adler, New YorkMassol, ParisMonroe Gallery of Photography, Santa FeSamuel T. Freeman and Company, PhiladelphiaScriptum, Berkeley, CaliforniaSkinner, Inc., Bolton, MassachusettsSloan’s, Washington, D.C.Sotheby’s, New York and LondonSpanierman Galleries, New YorkSwann Galleries, New YorkTiffany and Company, New YorkVose Galleries, Boston

THE FOLLOW ING INTERNET SITES WERE SPECIFICALLY CONSULTED:www.afterimage.comwww.artfact.comwww.artnet.comwww.artprice.comwww.askart.comwww.castlefinearts.comwww.christofle.comwww.ebay.comwww.gordonsart.comwww.idburyprints.comwww.michaelcfina.comwww.replacements.comwww.silversuperstore.comwww.sothebys.comwww.upscalegallery.com

http://www.vietnameseartonline.com




http://www.artprice.com

http://www.art-sales-index.com

http://www.askart.com

http://www.auctioninsantafe.com

http://www.castlefinearts.com

http://www.christofle.com


http://www.idburyprints.com

http://www.michaelcfina.com

http://www.replacements.com

http://www.silversuperstore.com

http://www.sothebys.com

http://www.upscalegallery.com

http://www.upenn.edu

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Estate of Mr. Zen Date of Death 02/02/08"Fair Market Values” Self-Contained Estate Appraisal Page 1 of 39

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APPRAISERS’ CERTIFICATIONCOMPANY NAME is a registered firm of appraisers qualified to appraise residentialcontents, fine art, and antiques. In 199*-200*, APPRAISER’s NAME, AAA, examined andphotographed the majority of the articles listed herein. APPRAISER’s NAME appraised allitems of Fine Art and reviewed all appraised values of all items for insurance purposes.Her examination and appraisal of Fine Art items was assisted by APPRAISER 2. APPRAISER3 and APPRAISER 4 also examined and appraised items of antique furniture, silver, rugs,and general contents. APPRAISER 5 assisted in the examination of general contents andinsurance appraisal in 2005. Periodically since 2000, APPRAISER’s NAME visited the MR.ZEN’S home to examine new acquisitions, appraise for insurance purposes, and review thecondition of various items.Upon the death of Mr. ZEN, APPRAISER’s NAME was asked to review the collection for estatepurposes. In September 2008 NAME, GG examined and appraised all items of jewelry. Theseitems were also examined and photographed by APPRAISER’s NAME.APPRAISER’s NAME, AAA, the chief appraiser signed below, has not now nor has ever beendisqualified by the IRS from preparing IRS appraisals. Nor have any of the COMPANY’S NAMEappraisers ever been disqualified by the IRS from preparing IRS appraisals.The appraisers, without any past, present, or contemplated future interest which mighttend to prevent a fair and unbiased appraisal, declare the current fair market value ofeach item. Valuation is based solely on personal research and analysis of comparativemarket data as performed by the appraisers and office assistants at COMPANY NAME as ofdate of death, February 2, 2008 . Although the statements of fact contained in thisreport are true and correct, the values expressed herein are based on the appraisers’ bestjudgement and opinion and are not representations or warranties that the items willrealize that value if offered for sale in the United States. No other party wassignificant in the examination or valuation of the appraised property.Compensation for this appraisal is not contingent upon the arrived valuation. Fee isbased on an hourly rate plus expenses. Further, compensation is not contingent upon thereporting of a predetermined value or direction in value that favors the cause of theclient, the amount of the value estimate, the attainment of a stipulated result, or theoccurrence of a subsequent event.The objective of this report is to provide an unbiased fair market value guideline to beused as a basis to establish estate taxes for a taxable estate with a surviving spouse.The appraisers understand that this appraisal will be used in connection with an estatetax return and for potential capital gains, and that a substantial or gross valuationmisstatement resulting from this appraisal may subject the appraisers to a civil penaltyunder Section 6695A of the Internal Revenue Code.(Continued on Page 2)

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APPRAISERS’ CERTIFICATION(Continued from Page 1)Photographs and/or digital images are included in this report for reference only. Theclient is responsible for obtaining the appropriate photographs if requested by theInternal Revenue Service.This is a partial contents appraisal. Appraisers only valued items as indicated by theestate.This report has been written according to the rules of the 2008-2009 USPAP (UniformStandard of Professional Appraisal Practice). This appraisal is considered to be a“retrospective” self-contained appraisal report as the appraiser conducted her researchduring the Fall of 2008, 6-7 months after the date of death. Although the appraiserconducted her research in Fall 2008, the effective valuation date is the “retrospective”date of death, ----- --, 2008Although this certification page includes salient information regarding the methodologyof the report, additional information regarding the scope of work, assignment conditions,and disclaimers are important to understand the entire appraisal process. As such, theentire report is required to fully understand the assignment and this certification pageencompasses the entire report and is not valid without reading and understanding theentire report.Total pages of report: Total number of articles appraised: Total number of photographs: (Numbered to___ plus addendum photos)Examination dates: November 11 and 15, December 9, 199*, January 31, and February 3,2000, May 2, 200*, February 16, 200*; September 4, 200*Research dates: February 14, 200* - March 11, 2001; May 2 - 9, 200*; February 16 - July15, 200*; January 15 - June 22, 200*; August 10 - October 3, 200*Date of death: February 2, 2008Effective valuation date: February 2, 2008Issue date of report: October 15, 2008 APPRAISER’s NAME, AAA (Fine Art Appraiser)Appraisers Association of America, Certified Member (Taxpayer ID# #########7)

APPRAISER NAME, GG (Jewelry)Graduate Gemmologist (Taxpayer ID# #########)

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CV’S for each appraiser who signs the report

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TABLE OF CONTENTSAppraisers’ Certification Page 1 - 2Appraisers’ Qualifications Pages 3 - 3AAPPRAISER NAME, AAA Page 3APPRAISER NAME, GG Page 3ATable of Contents Page 4Scope of Work Pages 5 - 11Explanation of Authorship and Attribution Pages 12 - 13Explanation of Silver, Gold, and Jewelry Page 14Explanation of Fine Jewelry, Definition of Terms Pages 15 - 16Disclaimers, Limiting Conditions and Assumptions Pages 17 - 19Market Analysis Pages 20 - 21Total Value Page 21Appraised ArticlesSilverArticles 1 - 2 Page 23Entry FoyerArticles 3 - 4 Pages 24 - 25Powder RoomArticles 5 - 6 Page 26Living RoomArticles 7 - 8 Page 27LibraryArticle 9 Page 28Mr. Zen’S OfficeArticle 10 Page 29Dining RoomArticles 11 - 12 Page 30Kitchen and HallArticles 13 Page 31Master BedroomArticles 14 - 16 Pages 32 - 33Son’s BedroomArticles 17 - 19 Pages 34 - 35JewelryArticle 20 Pages 36Sources Pages 37 - 39References Books and Price Guides Page 37Galleries, Experts, Auctions, and Retail shops Page 38Websites Page 39

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUEPROBLEM TO SOLVE: The appraisers were asked to re-appraise a collection of artwork andantiques and a few items of jewelry belonging to an estate. Although in May 2008, theappraisers had prepared an updated insurance appraisal with retail replacement values forthe wife of deceased, the estate requires this appraisal with fair market values in orderto complete their estate tax filings and to set a cost basis to be used in the event ofpotential capital gains resulting from the sale of these items. This appraisal withphotographs will be sent to the executor of the estate. With client’sapproval/permission, this appraisal report will be sent to their designatedattorney/accountant. The executor is advised to keep a copy of the appraisal for theirrecords. This report is not valid for any other purpose.CATEGORIES OF ITEM EXAM INED : American, European, Asian art; American, English, Continental,Asian antiques; Persian rugs; maps; autographs; silver; china; fine crystal; householdcontentsCLIENT: The owner of the collection, the estate of MR. ZEN.OW NER OF COLLECTION: The client, the estate of MR. ZEN.USE OF APPRAISAL: Estate filing / potential capital gains.USER(S) OF APPRAISAL: This appraisal can be used and relied upon by the executor for theestate, a designated attorney/accountant, and the Internal Revenue Service. Any otheruser is considered an unintended user.EFFECTIVE VALUATION DATE OF APPRAISAL: The value expressed in this appraisal is effective asof the date of death, Month Date, YearOW NERSHIP INTEREST / ART LOSS REGISTER: The question of title was not an issue. The estate hadacceptable provenance records for most items. As such, the executor and the appraisersdid not pursue title searches with the Art Loss Register.AUTHENTICITY: Although the appraisers are not authenticators, the question of authenticitywas not an issue for the appraisers in the valuation of this collection due to thesupporting documentation.SPECIFIC ASSIGNM ENT CONDITIONS - GENERAL: Although the appraisers periodically visited the ZEN’Shome, the appraisers did not completely re-examine all of the works since the original1999-2000 appraisal. The appraisers assume the works in this appraisal are in comparablecondition as they were during the original 19**-200*, 200*, 200*, and 200* examinations,except as noted.(Continued on Page 6)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 5)The appraisers were given adequate time to research the items. Appraisers were givensignificant documentation for these articles while preparing the original appraisals in1999-2000, 2003, 2005, and 2008.SPECIFIC ASSIGNM ENT CONDITIONS (ASSUM PTIONS): The appraisers assume all mediums to be asreported. A scientific analysis of the chemical compounds was not conducted as it was notan issue relating to valuation.SPECIFIC ASSIGNM ENT CONDITIONS (EXTRAORDINARY ASSUM PTIONS): The appraisers assume the informationprovided by the client to be correct.The appraisers assume the works previously examined are the same works which are thesubject of this appraisal.The appraisers assume the works described and pictured herein are the pieces which are thesubject of this appraisal and that these articles will not be substituted with otherarticles by the estate.The appraisers assume authorship to be authentic, including signatures to be by the namedartists.Natural gemstones are processed from the time they are extracted from the earth by one ormore traditionally accepted methods. Therefore, unless otherwise stated, all coloredstones are presumed to have been subjected to a stable and possibly undetectablecolor/clarity enhancement process. Value conclusions are based on these universallypracticed and accepted processes.Marks on objects (trademarks, signatures, makers’ marks, serial numbers) may affect thevalue of a piece. For the purpose of this appraisal, the appraisers assume that allmarkings are authentic, unless otherwise indicated (also considered a limiting condition).The appraisers assume these works were previously purchased in appropriate markets withoutany unusual market stimuli affecting their sale.The appraisers assume the estate retains full title to works.SPECIFIC ASSIGNM ENT CONDITIONS (LIM ITING CONDITIONS): The appraisers did not remove all works fromthe wall due to their size or location. Items not removed from the walls will beindicated as such in the individual entries. The appraisal of these items is limited bywhat appears on the recto (also considered an Extraordinary Assumption).(Continued on Page 7)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 6)The appraisers did not remove any works from their frames or mounts. The appraisal islimited by what appears within the frame and matte (when applicable) (also considered anExtraordinary Assumption).The appraisers did not remove any upholstery to thoroughly examine for signature,markings, and conditions. The appraisal is limited by what appears within the frame andmatte (when applicable) (also considered an Extraordinary Assumption).Only when physically possible, did the appraisers examine undersides, and back rails offurniture for signatures and condition (when applicable) (also considered an ExtraordinaryAssumption).Only when physically possible, did the appraisers remove drawers to examine for signatures(when applicable) (also considered an Extraordinary Assumption).Only when physically possible, did the appraisers move heavy furniture to thoroughlyexamine for signatures and condition (when applicable) (also considered an ExtraordinaryAssumption).Only when physically possible, did the appraisers lift stone slabs atop furniture toexamine for signatures and condition (when applicable) (also considered an ExtraordinaryAssumption).The appraisers did not examine or test the workings of clocks for accuracy and precision(when applicable) (also considered an Extraordinary Assumption).The appraisers did not test any metals for the silver/gold content. The appraisers reliedon the validity/authenticity of the silver/gold markings (also considered an ExtraordinaryAssumption).The appraisers did not remove any stones from their mounts. The weight, grade, color, andclarity may be limited by the “in mount” examination. As such, this appraisal is limitedby what appears within the mount (also considered an extraordinary assumption).The appraisers are not authenticators. As such, in certain cases the appraisers mayrecommend authentication of specific marks. Authentication of this nature is not theresponsibility of the appraisers (also considered an extraordinary assumption).(Continued on Page 8)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 7)When examining diamonds and colored stones, every reasonable effort has been made todetermine the existence of a fracture filling, clarity, or color enhancement process.However, no binding representation can be made in all circumstances as to the existenceor nonexistence of such process. Enhancement procedures are often undetectable throughthe use of a standard portable laboratory. Detection of enhancements is limited by thegemological equipment used (also considered an Extraordinary Assumption).The appraisers are not conservators or jewelry repair technicians. As such, they did notprepare a condition report. This report is limited by the appraisers’ visual inspection.No other condition report was supplied (also considered an Extraordinary Assumption).SPECIFIC ASSIGNM ENT CONDITIONS (HYPOTHETICAL CONDITIONS): No Hypothetical Conditions were relevantto this report.M ETHOD OF EXAM INATION OF ART AND ANTIQUES: APPRAISER’s NAME, AAA, the chief appraiser, examinedand photographed all items in this report. APPRAISER 2, APPRAISER 3, and APPRAISER 4conducted further examination of specific items.The items were examined in a household setting, using daylight, incandescent light, andoccasionally a flashlight. These conditions were considered minimal to adequate, notoptimal. A minimal number of items were examined under a black light by the appraisersdue to location and brightness of the environment.Examination of fine art and antiques consisted of a visual inspection to identify medium,style, quality, date, size, and condition of works.Signature, markings, and labels were noted if found.Most works have been measured. Measurements are given to the nearest 1/8 inch; heightprecedes width unless otherwise stated.The appraisers assigned a general condition report to each object. “Condition” refers towhat is considered generally acceptable, with ordinary wear and tear for its type, unlessotherwise noted.M ETHOD OF EXAM INATION OF JEW ELRY: APPRAISER’s NAME, AAA, briefly examined the items in ahousehold setting while photographing the collection.(Continued on Page 9)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 8)Mr. GEMOLOGIST more thoroughly examined and evaluated the items in this appraisal by usingthe accepted standards of the jewelry industry and those of the Gemmological Institute ofAmerica. Data was collected “on site” and in accordance with those standards by usingcareful observation and professional equipment. Items were examined through one or moreof the following devices/equipment: a portable Gemmological laboratory, an AmericanOptical 570 Binocular Microscope with 10x-63x magnification, 10x loupe, a fiberoptic probeilluminator (with monochromatic filter), long and short wave ultraviolet (UV)fluorescence, Rayner Refractometer, dichroscope, spectroscope, electronic scales,leveridge gauge, G.I.A. Gem Set, Gem Dialogue Color Comparison, Diamond Grading LightSource, G.I.A. diamond master comparison stones, and a metal testing kit.The quality grade of any gemstone is restricted by various types of mountings, settings,and lighting conditions. This quality grade of any gem may differ if it is removed froma mounting and/or examined under a different light source. However, in order tostandardize the examination environment, the jewelry industry has prescribed the use of“special” lighting. The prescribed light sources were used in this examination. Thisincludes both a diamondlite (north daylight equivalent) and a fiber optic probe(monochromatic light source). Additionally, when appropriate, long/short wave (UV)fluorescence was used to aid in the authentication of diamonds and colored stones.Metal quality of finished jewelry cannot be conclusively established by the gemologistappraiser. Common industry practice suggests that metals be identified by acid testing,test needles and rub stones as well as confirming the authenticity of identificationmarks. The designer and/or manufacturer of a given piece of jewelry may be identified byextensive research and the authentication of trademarks, hallmarks, and maker’s marks.The gemologist appraiser was able to ascertain material, style, size, and quality ofworkmanship from his personal examination and referencing photographs and personalresearch.Each work has been measured. All measurements are approximate. Measurements are givento the nearest mm/gram. Unless otherwise stated, the weights of all mounted gemstones areestimated by using accepted gemological formulas, and should be within the acceptedlimitations of that method. Although state-of-the-art gemological equipment is used, theactual weight of gemstones when unmounted may be different from the estimated wight byformula (also considered an extraordinary assumptions and limiting condition).No condition report was supplied. The appraiser has assigned each piece a generalcondition comment - good, fair, or poor - and a qualification. “Condition” refers to whatis considered generally acceptable, with ordinary wear and tear for its type, unlessotherwise noted.(Continued on Page 10)

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1The Gramm-Leach-Bliley Act, passed in 1999 and fully effective in July, 2001, addressedoverall financial industry reforms as well as emerging consumer privacy and securityissues. Officially called the “Financial Modernization Act of 1999”, it affects thetechnology and information system policies used by anyone engaged in providing financialservices either directly or indirectly to consumers. Appraisers are specifically namedas institutions required to follow the stipulations of the law.10

SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 9)PHOTOGRAPHY: Photographs are taken upon request and necessity. The appraiser took 35mmphotographs of the work. No modifications or alterations were made to the appraisers’photographs.M ETHOD OF RESEARCH: Research was conducted in the offices of COMPANY NAME. The office isequipped with an extensive library of more than 10,000 research books and auctioncatalogues. Additional research was conducted on the internet using standard searchengines as well as pricing data bases to which COMPANY NAME subscribes (including ArtNet,ArtFact, ArtPrice, AskArt, ArtInfo, Gordons, Prices for Antiques, Antique Clocks PriceGuide). Appropriate galleries and auction houses were contacted for information whennecessary. Minimal outside library/museum research was conducted for this specificappraisal. Specific sources and Internet sites are listed at the end of the report.TYPE OF APPRAISAL: This report is considered to be a self-contained appraisal reportaccording to the rules of the 2008-2009 USPAP (Uniform Standard of Professional AppraisalPractice). Comparable auction history is included in the report when relevant. Specificcomparable retail sales history is confidential according to the Gramm, Leach, Bliley Act1and cannot be disclosed without the owner’s permission. However, the appraisers havenoted general conversations in the client’s file in the offices of COMPANY NAME and areavailable for the client or the Internal Revenue Service (with the client’s permission)to examine upon request. This information will be kept by COMPANY NAME for a minimalperiod of five (5) years after the date of issue or two (2) years after final dispositionof any judicial proceedings involving the appraisers, whichever period expires last.APPROACH TO VALUE: The appraisers named on the cover page of this document employed the"market comparison" approach to arrive at the appraised "fair market value". The "income"approach and the "cost" approach are not applicable to this particular appraisal.M ARKET EXAM INED: The "market comparison" approach analyzes recent sales of comparablearticles at major international and regional fine art auctions, private and public sales,shows and exhibitions, as well as prevailing prices at retail shops and galleries wherethe article may normally be traded. For this particular appraisal, the appraisers (Continued on Page 11)

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SCOPE OF WORK: APPRAISAL METHOD AND DEFINITION OF VALUE(Continued from Page 10)primarily examined the appropriate international gallery and auction markets. Adjustmentsare then made for each article which consider age, condition, rarity, artistic merit,technical workmanship, current trends and availability of an article as compared to suchrecent sales.TYPE OF VALUE USED: Fair Market Value.DEFINITION OF VALUE: Appraised “fair market value” as defined by IRS Section 1.170 and20.2031 (b) is "the price at which the property would change hands between a willing buyerand a willing seller, neither being under any compulsion to buy or to sell and both havingreasonable knowledge of relevant facts." (According to Technical Advisory Memorandum9235005 (May 27, 1992), fair market value should include the buyer's premium.) 20.2031(b) continues "the fair market value of an item of property includible in the decedent'sgross estate is not to be determined by a forced sale price. Nor is the fair market valueof an item of property to be determined by the sale price of that item in a market otherthan that in which such item is commonly sold to the public, taking into account thelocation of the item wherever appropriate. Thus, in the case of an item of propertyincludible in the decedent's gross estate, which is generally obtained by the public inthe retail market, the fair market value of such an item of property is the price at whichthe item or a comparable item would be sold at retail." (Treasury Regulation Section1.170A-13©)(3)(1988)SOURCE FO R VALU E DEFINITION: IRS Section 1.170 and 20.2031 (b) and Treasury RegulationSection 1.170A-13©(3)(1988)USPAP COM PLIANCY: The report was written by APPRAISER’s NAME, AAA whose USPAPcertification is valid until May 2009.This appraisal report follows the guidelines of USPAP in that the report provides all ofthe necessary information/analysis to satisfy the “retrospective” report developmentrequirements as defined in Standard 7 (Personal Property, Development) and the writingrequirements of a Self-contained Appraisal as defined in Standard 8 (Personal Property,Reporting).Additionally, the report includes complete and augmented descriptive text from the pastappraisals with revised fair market valuations based on the 2008 market. This isconsidered Option 1 under Update Report Requirements in Advisory Opinion 3 (page A-8).

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EXPLANATION OF AUTHORSHIP AND ATTRIBUTIONGLOSSARYA George III mahogany linen pressLate 18th centuryThis heading and date indicate that in the appraisers’ qualified opinion the piece isessentially of the period. Later restorations and alterations are indicated andconsidered in the valuation.A George III-style mahogany linen press19th centuryThe heading and date with the word "style" included indicates that in the appraisers’qualified opinion the piece is an intentional copy of an earlier design. Laterrestorations and alterations are indicated and considered in the valuation.FURNITURE PERIODS AND STYLESDates British Monarch U.K. Period French Period1649 - 1660 Commonwealth Cromwellian Louis XIV (1643 - 1715)1660 - 1685 Charles II Restoration1685 - 1689 James II Restoration1689 - 1694 William & Mary William & Mary1694 - 1702 William III William III1702 - 1714 Anne Queen Anne1714 - 1727 George I Early Georgian Regence (1715 - 1723)1727 - 1760 George II Early Georgian Louis XV (1723 - 1774)1760 - 1811 George III Late Georgian Louis XVI (1774 - 1793)Directoire (1793 - 1799)Empire (1799 - 1815)1812 - 1820 George IV Regency Restauration (1815 - 1830)1837 - 1901 Victoria Victorian Louis Phillippe2 Empire (1848 - 1870)nd3 Republic (1871 - 1940)rd1901 - 1910 Edward VII Edwardian Art Nouveau (1890 - 1920)SIGNATUREWhen a work is signed/dated/inscribed by the hand of the artist/craftsman, the appraiserwill state "Signed/stamped/incised..." exactly as written by the particularartist/craftsman in the specific composition. This means that the appraiser believesthe work to be by the "signed" artist/craftsman.(Continued on Page 13)

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EXPLANATION OF AUTHORSHIP AND ATTRIBUTION(Continued from Page 12)When a signature/stamp/seal exists on a work, but the work does not appear to be by thehand of such signed artist, the appraiser will indicate that the work "Bearssignature/stamp of...". This means that the appraiser does not believe the work to beby the "signed" artist/craftsman.AUTHORSHIP GLOSSARYTITLE - If a generally accepted title for the work exists, that title is given. If thework is untitled or the title is unknown, a descriptive title may be assigned and isindicated with an asterisk (*).When provenance is unknown and a search of reliable sources fails to render informationconcerning a particular artist or work involved, a value determination is based onartistic merit and market conditions.AUTHORSHIP - When a work is unsigned but generally accepted in the scholarly communityto be by a particular artist, that artist's name will be indicated as "Ascribed to...".This is the highest category of authenticity.When a question of doubt concerning authorship prevails, the authorship will beindicated as "Attributed to..." a particular artist or a school.When a signature exists on a work, but the work does not appear to be by the hand ofsuch signed artists, the appraiser will indicate that the work "Bears signature of...".This means that the appraiser does not believe the work to be by the "signed" artist.

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EXPLANATION OF SILVER, GOLD, AND JEWELRYSilver - Only articles which are marked with a sterling standard(925/1000 or greater), the word sterling, or have beenscientifically proven to be sterling, will be described as sterlingsilver. Articles with some other silver standard (Continental -800/1000 or greater, coin, seven metal), or have proven to be silverof a certain standard, will be identified accordingly.Gold - Only articles which are marked 10K, 14K, 18K, 24K, or havebeen scientifically proven to be gold, will be described andidentified accordingly as gold.Jewelry - All articles of fine jewelry with major stones areexamined by a Graduate Gemmologist and will be described andidentified accordingly. Articles of vintage and/or collectiblejewelry are examined by an antique’s appraiser and valued asantiques rather than their value in materials.All weights have been determined by use of Troy or pennyweightscales.Current spot silver and gold prices on the New York market are afactor in the determination of appraised value of contemporarysilver. Adjustments are then made for each article afterconsidering age, condition, rarity, artistic merit, technicalworkmanship, current trends, and availability of an article.Gold items with a fine art, antique, or rare value are indicated inthe report as "(GOLD)". This indication is directly under thearticle number.

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EXPLANATION OF FINE JEWELRYDEFINITION OF TERMSDIAMONDS AND COLORED STONESAll articles of fine jewelry with major stones are examined by a Graduate Gemmologist and willbe described and identified accordingly. Articles of vintage and/or collectible jewelry areexamined by an antiques appraiser and valued as antiques rather than their value in materials.Diamond and colored stones are valued based on the following criteria when significant:CARATCarat is the measure of weight, not the size of the stone. It is a small unit of measureequal to 200 milligrams. The word "carat" is derived from “carob”, the tree whose seedsbecame the standard for measuring diamonds. A 1 carat diamond is made up of 100 units called"points". Therefore, a 50 point diamond is a ! carat or .50 carat. (“Carat” in reference tothe weight of a stone should not be confused with "karat" in reference to gold.)COLORDiamonds are assigned a color grade based upon the amount of body color exhibited whencompared to a set of Master Color Diamonds which have been color-graded and registered by theGIA Gem Trade Laboratory. In most cases, diamonds are graded using a standardized lightsource equivalent to daylight.The color grading scale is as follows:

D E F ! G H I J ! K L M ! N O P Q R ! S T U V X Y Z ! Z+ COLORLESS NEAR FAINT VERY LIGHT YELLOW LIGHT YELLOW FANCY COLORLESS YELLOW YELLOWCLARITYClarity is an indication of a diamond's purity. Clarity is determined by the overall number,size, and location of inclusions (flaws). The U.S. Federal Trade Commission established thejewelry industry's standards for diamond clarity based on 10-power magnification. As such,the appraiser assigned diamonds a clarity grade based upon examination under a 10x binocularmicroscope equipped with dark field illumination.The clarity grading scale is as follows:

FLAWLESS I.F. VVS"" VVS# VS" VS# SI" SI# I" I# I$INTERNALLYFLAWLESS VERY VERYSLIGHTLY INCLUDED VERY SLIGHTLYINCLUDED SLIGHTLYINCLUDED IMPERFECT EYE VISIBLEINCLUSIONSCUTCut refers both to the shape of a diamond and the precise arrangement of its facets. The mostpopular cuts are Round (AKA Brilliant), Pear, Marquise, Emerald, Oval, Princess, and Heart.


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EXPLANATION OF FINE JEWELRY - DEFINITION OF TERMS(Continued from Page 15)PEARLSAll articles of fine jewelry with pearls are examined by a Graduate Gemmologist and will bedescribed and identified accordingly. Articles of vintage and/or collectible jewelry areexamined by an antiques appraiser and valued as antiques rather than their value in materials.Pearls are valued based on the following criteria when significant: SHAPERound - well-matched, globular (most valuable)Half-round - flat bottomsBaroque - irregularFresh water - irregularBODY COLORThere are six main body colors found in pearls: white, cream, pink, golden, black, andgreen. Pearls are also found in blended color variations such as lavender, silver, and gray.Pearls are ideally graded in natural daylight using a white background. If natural light isunavailable, fluorescent light is the next best lighting. Color evaluation of pearls iscontroversial as a value factor. While color is significant, it is not granted over-importance in the final estimation of value. The evaluation of color is more difficult andrather subjective, as there are subtleties of market preference based on attitudes ofspecific clients and regional preferences.LUSTERPearls are rated according to the fineness of their luster. Luster is determined by theintensity of the reflection found on the surface of a pearl which results from light strikingthe surface. Luster is seen on a smooth surface where no ridges are present to reflect thelight in many directions. The more mirrorlike the surface reflection of a pearl, the betterthe quality. In evaluating pearls, the appraiser assigned a luster rating of very good,good, and fair.MATCHMatch is an indication of continuity and quality in a strand of pearls. In a well-matchedstrand, the pearls are similar in shape and give the viewer the overall impression ofevenness. A well-matched strand is given a higher value consideration than one of mixedshapes. In evaluating a stand of pearls, the appraiser assigned a match rating of very good,good, and fair.BLEMISHESBlemishes, or spotting, are the wrinkles, cracks, gaps, bumps, or dull spots on the surfaceskin of pearls. The most important criterion for assessing the value of a pearl is theperfection of the skin, i.e., the lack of blemishes. As such, the appraiser has indicatedany apparent blemishes.

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONSThis certificate of appraisal is given, subject to the terms and conditions hereinafterset forth, all of which are a part hereof unless expressly set aside in writing eitheron the pages of this certificate or by writing attached to the certificate signed byall parties concerned.This appraisal consists of ## pages and must be presented in its entirety to bevalid.This appraisal is prepared solely for estate tax purposes using the comparativemarket approach to arrive at the fair market value as of , . It is to be usedsolely by the Estate of MR. ZEN and the agents (executor, accountants, attorneys) forestate tax purposes. This report can also be relied upon by the Internal RevenueService .The client shall indemnify, defend, and hold us harmless from and against any actions,claims, liabilities or expenses incurred as a result of claims based on or arising fromthe appraisal, by third parties unrelated to the immediate purpose of this appraisal.Unless otherwise stated herein, this certificate is based only on the readily apparentidentity of the items appraised, and no further opinion nor guarantee of authenticity,genuineness, attribution, or authorship is made. However, in appraising the subjectarticles, the appraisers found no reason to question the authenticity of the articles.To the appraisers’ knowledge, scientific and/or laboratory testing has not beenperformed on any item. When necessary, items were examined under a 10X magnifyinglens.The appraised value is based on the whole ownership and possessory interestundiminished by any liens, fractional interests or any other form of encumbrance oralienation.This certificate is made at the request of the party named for her use. It is not anindication or certificate of title ownership. The identification of the interest ofthe requesting party is simply that represented to the appraisers by such party and noinquiry or investigation has been made nor is any opinion given as to the truth of suchrepresentation.The values expressed herein are based on the appraisers’ best judgment and opinion andare not representations or warranties that the items will realize that value if offeredfor sale at an auction or otherwise. The values expressed are based on currentinformation on the assigned effective valuation date stated on the cover page of thisreport. No opinion is hereby expressed as to any future value, nor unless otherwisestated, as to any past value. (Continued on Page 18)

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 17)The appraisers have considered the highest and best use of the appraised articles withrespect to the most appropriate, common, and legal marketplace given the purpose of theappraisal.The appraisers examined the artwork in 19**-200* and periodically (but not completelyand specifically) throughout the past eight (8) years. The wife of the client hasreported the articles to be in similar condition, without further damage or repairs.The wife of the client reported that the works are in her possession, except as noted.As such, the updated appraised values reflect comparable existence and condition of thearticle per the 1999-2000 and successive appraisal reports. The appraisers are notresponsible for unreported deaccessions or unreported condition issues which may haveoccurred since examination.Other than previous appraisal assignments, do the appraisers have any past interest,present interest, nor any contemplated future financial interest in the appraisedproperty. Nor do the appraisers have any personal interest or bias with respect to theparties involved. This appraisal was done objectively, according to the rules of theIRS (in the Pension Protection Act of 2006 H.R. 4, Public Law 109-280), and inaccordance with the 2008-2009 Uniform Standards of Professional Appraisal Practice.Further, the appraisers have no other interest which might tend to prevent making afair and unbiased appraisal.This appraisal was researched and prepared by the appraisers named on the cover pageof this report. Supplemental research was supplied by office assistants and internsat COMPANY NAME, particularly Jacklyn Smith, Farah Fawcett, and Kate Jackson. No otherperson supplied significant assistance in preparation of this report.A significant amount of client’s information was provided to the appraisers by theclient or specific dealers. However, information regarding provenance on some articleswas limited to hearsay. Any factual and/or hearsay information provided by the clientis assumed to be correct, however, the appraisers are not responsible for any errorsor misrepresentations on the part of the client.The appraisers did not personally examine any of the comparable sales and/or offeringswith regard to these particular works. The appraisers are relying on information madeavailable through price data bases and gallery inventories regarding authenticity,condition, and sales information concerning these works.Consulting sources are listed in the back of the report. Information furnished byconsulting sources is assumed to be reliable, but is not guaranteed by the appraisersor their firm.(Continued on Page 19)

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DISCLAIMERS, LIMITING CONDITIONS AND ASSUMPTIONS(Continued from Page 18)The appraisers are not required to give testimony, be present in any court of law, orappear before any commission or board by reason of this appraisal, unless priorarrangements have been made with the appraisers. Should this report be challenged inany way, not limited to litigation, it is understood that the appraisers are preparedto defend their appraisal, if required. Courtroom testimony, mediation proceedings,and the necessary preparation are considered to be separate assignments and will bebilled at our then current normal hourly rate plus expenses as required.Possession of this report, or copy thereof, does not include the right of publicationwithout the written consent of the appraisers and their firm. This report in itsentirety, or any part thereof, including the identity of the appraisers or their firm,shall not be made public through advertising, public relations, news releases, sales,or other distributive or information media without the written consent of theappraisers and their firm.Copies of this appraisal and notes pertaining to the appraisal, written and electronic,will be kept in the offices of COMPANY NAME for a minimal period of five (5) yearsafter the date of issue or two (2) years after final disposition of any judicialproceedings involving the appraisers, whichever period expires last. COMPANY NAME willmake every effort to store clients’ records in a safe and secure environment. However,the firm is not responsible for acts of war, terrorism, or other such unexpectedcatastrophes which may affect the safekeeping of this report.All matters treating the duties, responsibilities, and liabilities of the appraisersare in accord with the Valuation Standards and Professional Practices as outlined bythe Appraisal Foundation in the 2008-2009 Uniform Standards of Professional AppraisalPractice and the Principles of Practice and the Code of Ethics of the AppraisersAssociation of America.

© 2009 COMPANY NAME. All Rights Reserved. None of the contents of this appraisal report may be reproduced, stored in a retrieval system ortransmitted in any form or by any mean (electronic, mechanic, photocopying, recording or otherwise) without the prior written permission ofCOMPANY NAME and the appraisers' signature.

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MARKET ANALYSISRecent published auction sales and available retail sales are listed/discussed inthe report following the description of each appraised article of significant value(primarily those with an FMV in access of $1,000). These listings serve tosubstantiate the final appraised value as well as indicate market preferences andlevels. Comparables normally include items that sold prior to the date of thedecedent's death (02/02/08). However, in certain cases, a more appropriatecomparable appeared on the market after the date of death. In which cases, we havelisted those comparables, but have considered the time factor and if the market hadchanged since the date of death.Given that the art markets are always volatile markets, an overall market valuationforecast cannot be established. Particularly with the uncertain political andeconomic situation of the world after September 11, 2001, a market analysis isdifficult to prepare in these unstable times.Many factors enter into valuations of fine art beyond pure aesthetic appeal. Amongthe principles which may affect future values of items are the basic economicprinciples of supply and demand, national and international legislation, the globalmonetary market, social attitudes, and design trends. However, based on an analysisof the market since 2000 and an optimistic presumption of a future relatively stablegrowth, it could be concluded that certain areas have and will appreciate at agreater rate than others.The past few seasons have been very successful for the art market with bothChristie’s and Sotheby's turning out record-breaking sales. Recognized masterscontinue to perform well at auction, paralleling their retail gallery sales. Worksby secondary artists have also proven to command a considerable price at auction,however, their retail gallery sales are considerably higher than their auctionequivalents. However, as works of the first tier artists become increasinglydifficult to find, renewed interest in the secondary artists occurs, resulting ina rise in their prices. Some of your works by the second tier artists maysignificantly take off in the years ahead.Since Georgian furniture has a classic look that suits most interiors, it is fairlystable, but the lower end of the market is experiencing a dip in the market as theModernist look is the rage of decorators. Although Georgian furniture is readilyavailable on the American as well as the European market, fresh quality examples areoften difficult to find. Due to the overactive antiques market combined withextreme global wealth, a significant rise in the top end of the market has beenobserved. Prices for the best pieces continue to rise. Collectors continue to paytop dollars and outbid each other for exquisite examples of quality Georgian styleand workmanship when such pieces are found. Much of your English furniture piecesfall into this category. (Continued on Page 21)

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MARKET ANALYSIS(Continued from Page 20)French and Continental furniture are currently performing surprisingly better thanEnglish furniture as collectors are looking for a unique look.Your rug collection includes some exquisite examples of desirable age and color.The antique and semi-antique rug market is doing phenomenally well. However, therug marker for newer rugs, in general, is not among the stronger markets at themoment.Chinese antiquities is one of the markets that has skyrocketed. Changes in theAsian economy have created a new pool of buyers. Many of them purchasing historicalworks and building new cultural collections. Significant works as well as 20thcentury tourist works have seen a rise in prices.That said, with the national economy experiencing a downturn, the art market isconsidered fair game. The Fall sales will be indicators of the next few years.Please note that this appraiser does not guarantee any prices or predictions forvalues in the future.

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TOTAL VALUESILVER $ 0.00CONTENTS $ 0.00JEWELRY $ 0.00GRAND TOTAL $ 0.00

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APPRAISED SILVERArticleNumber AppraisedValue Description1. $ 000.00Piece An American sterling silver water pitcher of urn form with aspurred C-shaped handle, raised on a spreading circular basePattern 182Gorham Manufacturing Company, Providence, Rhode Island1956Height: 8 7/8 inchesWeight: 23 ouncesCondition: Good. Photo 102. $ 000.00Piece An English Regency sterling silver water pitcher of urn formwith an engraved armorial indicating Resurgo above a reededlower section continuing to a spreading circular pedestal base,mounted with a spurred wood handleMaker HILondon, 1813Height: 12 inchesWeight: 43 ouncesProvenance: C. M. Leonard Antiques, New YorkSale - March 3, 199-Condition: Good.Auction comparables:05/22/08 – Sotheby’s, NY, lot 152, Regency water pitcher, H:11.5 Wt: 35 oz, est. $1,500-2,500; sold $4,05503/29/08 – Christie’s, NY, lot 12, Regency water pitcher,H: 13.5 Wt: 45 oz,, est. $2,000-3,000; sold $3,57502/03/08 – Christie’s, London, lot 215, Regency water pitcher,H: 12.25 Wt: 42 oz,, est. £2,000-3,000; sold $3,377Photos 12 and 13

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APPRAISED CONTENTS - ENTRY FOYERArticleNumber AppraisedValue Description3. $ 000.00Piece Name*A quiet early autumn landscape depicting trees and bushes sur-rounding a reflective winding river, with hills in thebackground, under a blue sky filled with yellow and pink-tingedclouds, executed in a painterly mannerOil on canvas boardCal E. Broming (American, 20 century)thExecuted 1969Signed Cal E. Broming [?] and dated 1969 at lower rightWork size: 8 x 9 3/4 inches (sight)Framed size: 13 x 15 inches20 century gold-painted wood frame with linen-covered filletthand giltwood bevelCondition: Good.Note: Only one record for artist was found in search ofstandard biographical and auction sources which leads appraiserto question spelling of artist’s name. Should additionalbiographical information be made available, this value shouldbe reviewed. Photos 156 and 157

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4. $ 000.00Piece NameAn early autumn landscape showing a tall tree with shorteryellow-leafed trees and bushes of purple wildflowers at basewith other orange-leafed trees on distant hill at right and inleft valley, under a blue sky filled with cumulus cloudsOil on canvasWalter Whitcomb Thompson (American, 1882 - 1948)Executed January 25, 1927Signed Walter W. Thompson at lower right; also titled TheMonarch, signed by Walter W. Thompson, dated 1-25-27, andindicated N.Y. on reverseCanvas size: 20 x 24 inchesFramed size: 23 5/8 x 27 3/8 inches20 century gilded oak framethCondition: Good.Auction comparables:06/15/08 – Charlton Hall Galleries, Columbia, SC, lot 624,Morning Siesta, Murrells Inlet, South Carolina, o/board, 24 x20, est. $5,000-7,000; sold $4,80006/17/03 – John Moran, Altadena, CA, lot 157, Sangre de ChristoRange near Salida, 1922, o/canvasboard, 12 x 16, est. $800-1,200; sold $60506/04/03 – Alderfer’s, Hatfield, PA, lot 270, Now the Day isOver, o/c, 20 x 30, est. $1,000-1,200; sold $1,380Photos 164 and 165

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APPRAISED CONTENTS - POWDER ROOMArticleNumber AppraisedValue Description5. $ 000.00Piece A Dutch Baroque-style oyster-veneered burl walnut and marquetrywall mirror, the oblong mirrored plate within a conformingmoulded frame, each corner with inlaid scrolling foliageLate 19 centurythHeight: 38 inches Width: 30% inchesProvenance: Yale Burge Antiques, Inc., New YorkSale - May 3, 1990 Stock number 504/5856Via IMA Designs Ltd., New YorkCondition: Good; some losses to mirrored plate.Auction comparables:11/01/05 - Sothebys, London, lot 174, Anglo-Dutch oyster-veneered mixed wood wall mirror, Wm & Mary, Second half 17thC., 41 x 33, est. £3,000-4,000; sold £9,000 ($16,364)04/16/02 - Christie’s, NY, lot 244, Anglo-Dutch oyster-veneeredmixed wood wall mirror, Wm & Mary, Late 17 C., 35 x 29, est.th$8,000-12,000; sold $15,535Valuation: Although comparables are earlier, they are of thesame style. Value is reduced due to later date.Photo 1916. $ 000.00Piece A French cut-crystal covered dish of circular shape, the coverand base cut with starburst designMassenaNumber 733 401Baccarat, ParisLate 20 centurythMarked underneath Baccarat FranceHeight: 3 inchesDiameter of bowl: 5 3/4 inchesCondition: Good.Note: Discontinued. Photos 188 and 189

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APPRAISED CONTENTS - LIVING ROOMArticleNumber AppraisedValue Description7. $ 000.00Piece “Name”An abstracted depiction of an old man with hump back seated ona stool and with a young boy clutching his left knee, the manwith a black crow perched on left shoulder and black catclimbing onto right kneeOil on canvasTrento Longaretti (Italian, born 1916)Executed 1967Signed T. Longaretti at lower right; also marked 1276/67 TrentoLongaretti, “Nowno Rouenta of Bombino Gietto” 1967 on reverseCanvas size: 27 3/4 x 19 3/4 inchesFramed size: 35% x 27 inches20 century gilded and painted wood frame with yellow linen-thcovered filletCondition: Good.Auction comparable:11/09/07 - Dobiaschofsky, Bern, lot 593, Il prestigiatore delteatro dei poveri, o/c, 39.4 x 31.9, est. $11,819; sold $11,473Photos 206 and 2078. $ 000.00Piece An American upholstered three (3)-seat sofa with enclosed backand arms over a tufted seat cushion and straight skirt coveredin yellow strié silk upholstery with yellow and peach tape trimLate 20 centurythHeight: 28 3/8 inches Length: 7 feet, 1 inch (85 inches)Condition: Good.Valuation: Auction market does not reflect the appropriate FMV.As such, the appraiser looked to the decorator market andapplied a discount to arrive at the FMV.Photo 339

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APPRAISED CONTENTS - LIBRARYArticleNumber AppraisedValue Description9. $ 000.00Piece Name (Number -2-1)A marine scene showing a large sailing vessel on rough waterswith a smaller sailing vessel in the distance, clouded whiteskyOil on boardMontague J. Dawson (British, 1895 - 1973)Executed September 30, 1960Signed Montague Dawson at lower centerWork size: 20 x 24 inchesFramed size: 26% x 30% inches20th century giltwood frameProvenance:Frost and Reed, London Number 4261 Date 30-9-60 (label)Marine Arts Gallery, Salem, MassachusettsSale - January 25, 1988Condition: Good.Note: Label on reverse indicates that Dawson was originallycommissioned to paint this work for the --- House. However,when he completed the work and delivered it to the --- House,they found the painting to be too small. He later painted alarger one which currently hangs in the --- House.Auction comparables:11/06/07 – Sotheby’s, London, lot 78, Homeward Bound, o/c, 20.1x 29.9, est. $61,112-101,853; sold $100,85201/31/07 – Christie’s, NY, lot 344, The “Arc” and the “Dove” offthe Scilly Isles, o/c, 28 x 42, est. $60,000-80,000; sold$72,000Valuation: A premium is added due to the --- House connection.Photos 352, 353, 354, and 355

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APPRAISED CONTENTS - MR. ZEN’S OFFICEArticleNumber AppraisedValue Description10. $ 000.00Piece NameA realistic landscape study depicting a stream flowing througha hilly woodlands area, cascading from a tree-covered hillunder broken trees and over rocksOil on canvasJervis McEntee (American, 1828 - 1891)Executed July 1855Initialed JME in monogram and dated 1855 at lower center;reverse original stretcher also inscribed Lanes and dated July1855Canvas size: 14! x 15 inchesFramed size: 21% x 16% inches19 century giltwood framethProvenance:Collection of the family until 1976Hirschl and Adler, New York Sale - April 10, 198-Stock number APG 2247hCondition: Good.Note: Canvas relined with note stating the canvas was labeled:Williams, Stevens, and Williams Looking Glass Ware Rooms andArt Repository Engravings, Art Materials 353 Broadway, NewYork.Auction comparables:09/13/08 – Leland Little Auctions, Hillsborough, NC, lot 227,Forest Interior, 1864, o/c, 14.2 x 17.2, est. $4,000-6,000;sold $11,00010/25/07 – Shannon’s, Milford, CT, lot 98, Forest Interior,1883, o/c, 16.2 x 11, est. $10,000-15,000; unsold09/12/07 – Christie’s, NY, lot 22, A Grove of Trees, Ashokan,New York, 1885, 15.5 x 11, est. $6,000-8,000; sold $7,500Photos 468 and 469

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APPRAISED CONTENTS - DINING ROOMArticleNumber AppraisedValue Description11. $ 000.00Piece A mahogany two (2)-pedestal dining table, the rectangular topwith rounded corners inlaid with brass stringing over a piercedapron, raised on two (2) vasiform pedestals, each with three(3) brass-inlaid downswept legs, brass lion paw feetSecond half 20 centurythHeight: 30 1/8 inches Length: 83 3/4 inchesWidth: 44 1/8 inchesCondition: Good.Valuation: Auction market does not reflect the appropriate FMV.As such, the appraiser looked to the decorator market andapplied a discount to arrive at the FMV.Photos 521, 522, and 52312. $ 000.00Part service A German porcelain partial coffee service, each white piecedecorated with an inverted scalloped cobalt border patternedwith gilt flowers and gilt scrollwork trim and a cluster ofpolychromed flowers centered below each archFurstenberg Porcelain Manufactory, Furstenberg, Brunswick20 centurythMarked 7Comprising:Eight (8) cupsHeight of each: 3 inchesSix (6) saucersDiameter of each: 5 7/8 inchesOne (1) two-handled covered sugar bowl of squat bulbous formOne (1) cream pitcherA total of sixteen (16) piecesCondition: Good. Photos 576, 577, and 578

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APPRAISED CONTENTS - KITCHEN AND HALLArticleNumber AppraisedValue Description13. $ 000.00Piece Name (Number 259)A colored botanical print depicting a purple-tinged greencabbage on a stem, with a slender stem with tiny yellowblossoms in the backgroundEngraving printed in colors on paperJohann Weinmann (German, died 1788)Executed circa 1737 - 1747Plate size: 12 3/4 x 8! inches (plus margins)Framed size: 24 x 18! inches20 century green and black plaid painted wood frame with hand-thpainted French matte and plexiglass plateProvenance: C. M. Leonard Antiques, New YorkSale - May 21, 1995Condition: Good.Note: Images are reported to be the first botanical prints tobe printed in color.Auction comparables:09/30/08 – Bonhams, London, lot 21, A Collection (12 works fromThe Phytanthoza Iconographia Series), 1737-1745, colorengraving, 12.8 x 8.5, est. $1,200-1,800; unsold09/02/08 – Christie’s, S. Kensington, lot 477, Vegetable Studiesfrom Phythanthoza Inconographia mezzotints, printed in green,hand prntr, 13 x 8.5, est. $1,189-1,586; sold $1,75007/11/07 – Christie’s, S. Kensington, lot 1312, VegetableStudies group of 8 from Phythanthoza Inconographiam)mezzotints, 13 x 8, est. $796-1195; sold $2,30001/20/05 – Christie’s, London, lot 163, Botanical Studies (setof 12), color etching and mezzotint with handcoloring, 13.2 x8.8, est. $9,157-14,653; sold $31,460Photos 626 and 627

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APPRAISED CONTENTS - MASTER BEDROOMArticleNumber AppraisedValue Description14. $ 000.00Piece NameAn impressionistic landscape, almost Pointillist in manner,depicting a meadow of green hues at left, having lush foliagein right portion of composition, with slightly obscured house,as seen by rooftop view, at left foreground, having buoyant,hazy clouds hover about lavender mountainous region in thebackgroundOil on canvasLilla Cabot Perry (American, 1848 - 1933)Signed Lilla Cabot Perry at lower rightWork size: 19! x 29! inches (sight)Framed size: 28! x 39 inches20 century giltwood framethProvenance: Hirschl and Adler, New York Sale - April 10, 1981Stock number APG 820Exhibition:Lilla Cabot Perry A Retrospective Exhibition, The CurrierGallery of Art, Manchester, New Hampshire; Hirschl and AlderGalleries, New York; New Jersey State Museum, Trenton, 1969 -1970, number 12, illustratedAmerican Paintings from the Late 18 through the Early 20 th thCentury, Wildenstein Art Center, Houston, Texas, 1978, number35Condition: Good.Auction comparables:12/20/06 – Christie’s, NY, lot 89, Haystacks, Giverny, o/c, 17.8x 23.3, est. $3,000-5,000; sold $19,20003/05/03 – Sotheby’s, NY, lot 69, The Foot Bridge, 1929, o/c,20.2 x 24, est. $12,000-18,000; sold $14,400Photos 753 and 754

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15. $ 000.00Piece An American upholstered (2)-seat sofa with an arched rectangularback and rolled armrests, the whole trimmed with cording,covered in ivory cotton upholstery with fringed skirtCirca 1977Provenance: Irving M. Altman, New YorkSale - December 22, 1977Condition: Good.Valuation: Auction market does not reflect the appropriate FMV.As such, the appraiser looked to the decorator market andapplied a discount to arrive at the FMV.Photos 750 and 75116. $ 000.00Group A group of four (4) French crystal fish figurines, each mouldedin a different color and finished with shiny and mattesurfaces, including green, yellow, blue, and purplePoissonsLalique, ParisLate 20 centurythEach signed ® Lalique FranceHeight of each: 1 7/8 inches Length of each: 2 inchesCondition: Good. Photos 859 and 860

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APPRAISED CONTENTS - SON’S BEDROOMArticleNumber AppraisedValue Description17. $ 000.00Piece Woman brushing hair*A depiction of a nude woman brushing her hair, executed in ahazy manner with a monochromatic paletteOil on masonite panelStilson (American, 20 century)thExecuted 1969Signed ©Stilson and dated 1969 at lower rightWork size: 30! x 24% inchesFramed size: 35 x 29 inches20 century giltwood frame with orange linen-covered mattethCondition: Good.Valuation: Decorative value. Photos 862 and 86418. $ 000.00Piece A cream and pink side table with a rectangular inset top withcanted corners over an open base, fitted with one (1) glassshelf, the whole decorated with a vinylized and impressedbasketweave designThird quarter 20 centurythHeight: 26 inches Width: 26 3/8 inches Depth: 22% inchesCondition: Good. Photo 861

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Estate of Mr. Zen Date of Death 02/02/08"Fair Market Values” Self-Contained Estate Appraisal Page 35 of 39APPRAISED CONTENTS - SON’S BEDROOM

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19. $ 000.00Piece NAMEA colored print depicting a standing Native American in colorfulcostume holding a rifle and walking on a path between a treeand a boulder, mountains in the backgroundLithograph printed on paper with handcoloringOriginally painted by Charles Bird King (American, 1785 - 1862)Drawn, printed and colored at J. T. Bowen’s, PhiladelphiaPublished by Daniel Rice and James G. Clark, Philadelphia, 1843Work size: 16 3/4 x 11 inches (sight)Framed size: 26 x 20 inches20 century carved giltwood frame with French matte andthplexiglass plateProvenance: C. M. Leonard Antiques. New YorkSale - April 18, 1995Condition: Good.Note: Work is from an original edition of the History of theIndian Tribes of North America by Thomas L. McKinney, of theIndian Department, Washington, and James Hall of Cincinnati.The three volume book was originally published, 1836-1844. Itcontained 120 hand-colored lithographed portraits by J. T.Bowen. The lithographs are based on oil paintings by CharlesBird King, who was employed by the War Department to paint theIndian delegations visiting Washington. Most of his originalworks were destroyed in a fire at the Smithsonian. Thus theirappearance in McKinney and Hall's Indian Tribes is the onlyrecord of the likenesses of many of the most prominent NativeAmerican leaders of the 19 century. McKinney was the firstthDirector of the Bureau of Indian Affairs, and he provided thebiographies, many based on his personal interviews. Hall, anIllinois lawyer and journalist, wrote the general history ofthe North American Indian.Valuation: The retail market is the more appropriate marketfor Charles Bird King prints. A discount of 30% from theretail price of this print is applied.Photos 894 and 895??

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APPRAISED JEWELRYArticleNumber AppraisedValue Description20. $ 000.00Piece An 18 Kt. yellow gold gentlemen’s oyster perpetual day/datewristwatch having a circular silver dial with stick chapterssurrounded by a fluted bezel, attached to an oyster braceletwith a smooth and textured surface; automatic movementRolex PresidentialCondition: Good.Valuation: Similar watches sell at Christie’s and Sotheby’s,New York for $---- to $----. Photos 57, 58, 59, and 60

??

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SOURCESTHE FOLLOW ING REFERENCE BOOKS AND PRICE GUIDES W ERE CONSULTED:

_____. American and European auction catalogues, 1987 - 2008._____. Annual Guide to Galleries, Museums, Artists. New York: Art in America, 1994 -2008._____. International Hallmarks on Silver. Paris: Tardy, 1985._____. The 1950s / Modern Furniture Price Guide: Auction Results from the 1991-1999, vol.2. Cincinnati, Ohio: Treadway Gallery Inc., 1999._____. Uniform Standards of Professional Appraisal Practice and Advisory Opinions. 2008-2009 Edition. Washington, D.C.: Appraisal Standards Board, 2007._____. Woodstock's Art Heritage: The Permanent Collection of the Woodstock ArtistsAssociation. Historical survey by Tom Wolf. Woodstock, New York: Overlook Press, 1987.Agee, William C, et. al. America Gone Modern From the Twenties to the Sixties. New York:Spanierman Gallery, LLC, 2000.Andacht, Sandra. Treasury of Satsuma. Des Moines, Iowa: Wallace-Homestead Book Company,1981.Andrews, John. Victorian and Edwardian Furniture Price Guide and Reason for Value.Suffolk, England: Antique Collectors' Club, 1994.Andrews, John. British Antique Furniture Price Guide and Reason for Value. Suffolk,England: Antique Collectors' Club, 1995.Archibald, E. H. Dictionary of Sea Painters. Second edition. Suffolk, England: AntiqueCollectors' Club, 1989.Aschenbrenner, Erich. Oriental Rugs Persian. Volume 2. London: Antique Collector'sClub, 1996.

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THE FOLLOW ING ARE SOM E OF THE GALLERIES, EXPERTS, AUCTION HOUSES,AND RETAIL SHOPS W HICH W ERE CONSULTED:A and J Speelman Ltd., Oriental Art, LondonAdobe Gallery, Santa FeAltermann Galleries, Sante FeAntiquariat Adina Sommer, MunichAsprey and Garrard, New YorkAuffray, New YorkBaccarat, New York Bolland and Marotz, BremenBonham's, KnightsbridgeBriest, ParisBruun Rasmussen, CopenhagenBukowskis, StockholmButterfield’s and Bonhams, San FranciscoChristie's, New York, Los Angeles, London, South Kensington,Melbourne, and AmsterdamChristie’s East, New YorkDalva Brothers, New YorkDaphne Rankin, LondonKarl Springer, New YorkKennedy Galleries, New YorkKetterer, Munich and BerlinKing Galleries, ScottsdaleKunsthallen, CopenhagenKunsthaus am Museum-Carola van Ham, CologneKunsthaus Lempertz, BrusselsLalique, New YorkLillian Nassau, New YorkMacConnal-Mason Fine Paintings, LondonMallett and Son Antiques Ltd., LondonManhattan Art and Antiques Center, New YorkNeumeister Kunstauktionen, MunichWood and Hogan, New York

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THE FOLLOW ING ARE SOM E OF THE INTERNET SITES W HICH W ERE CONSULTED:www.americansportingart.comwww.anri.comwww.arnoldstobacco.comwww.artfact.comwww.artnet.comwww.artprice.comwww.askart.comwww.asprey.comwww.artinfo.comwww.baccarat.comwww.canyonart.comwww.collectmodelcars.comwww.danburymint.comwww.decorati.comwww.ebay.comwww.geocities.comwww.gordonsart.comwww.groveart.comwww.herndonfineart.comwww.mataharicollectibles.comwww.newel.comwww.replacements.comwww.rogallery.comwww.ross-simons.comwww.someonespecial.comwww.steuben.comwww.tiffany.comwww.waterford.com

http://www.waterford.com

http://www.americansportingart.com

http://www.Anri.com

http://www.arnoldstobacco.com



http://Www.artprice.com


http://www.asprey.com

http://Www.artinfo.com

http://www.baccarat.com

http://www.canyonart.com

http://www.Collectmodelcars.com

http://Www.danburymint.com

http://www.decorati.com

http://www.ebay.com

http://www.geocities.com


http://www.groveart.com

http://www.herndonfineart.com

http://www.mataharicollectibles.com

http://www.newel.com

http://www.replacements.com

http://www.rogallery.com

http://www.ross

http://Www.someonespecial.com

http://www.steuben.com

http://www.tiffany.com

Appraisal Writing Guidelines

APPRAISAL TERMS AND DEFINITIONS ACTUAL CASH VALUE (ACV):

This term refers to Market Value and is generally synonymous with payment restricted to cash. Some insurance

policies also define ACV as the replacement cost minus any depreciation.

ADMINISTRATOR:

This is someone appointed by the court if the decedent died without a will. If no executor is named in the will or

if the person named cannot or will not serve.

AFFIDAVIT:

An affidavit is a statement used in an appraisal which explains what was done in the appraisal. An affidavit is

frequently called the appraiser’s certification.

ALTERNATE VALUATION DATE:

A term most frequently identified with estate appraisals. At present it is the date six months to the day after

the date of death on which the fiduciaries of the estate can chose, legally, to have the estate valued rather

than the date of death. In this manner, the IRS allows the estate the choice of a date which may be more

advantageous in the event that the market or price for the objects in question has changed significantly,

usually declining in value materially, from the date of death to the date six months after the death. If the

alternate date of death is chosen, then all items in the estate must be value on that alternate date, not just the

personal property.

ANTIQUE:

As defined by the United States Customs Department, any object that is 100 years old or older is an antique.

But the term is broadly interpreted with its definition varying from product to product and year to year.

Generally speaking, the following are the most accepted definitions: 1.) An item collected or desirable due to

its rarity, condition, utility or some other unique feature that is older than 100 years. Motor vehicles, in

contrast, are considered antiques in the US if they are older than 25 years and some electronic gadgets of

more recent vintage may be considered antiques; 2.) Ancient art such as sculptures, gems, medals, seals

collected from Greek and Roman civilizations.

APPOSITE VALUE:

This is a value that is fitting, suitable and appropriate for an object.

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APPRAISAL:

As defined by the Appraisal Standards Board (ASB) in the Uniform Standards of Professional Appraisal Practice

(USPAP) is “the act or process of developing an opinion of value.” According to the ASB, value can “be

numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than,

not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value).” It

should be noted that USPAP states that calling an appraisal something else such as “valuation” or “valuation

estimate” does not remove it from being considered as an appraisal if an opinion of value is given. The

document contains a valuation executed for a specific purpose and follows specified guidelines.

THE APPRAISAL FOUNDATION:

This is an independent organization established in 1987 by the US government with members from various

appraisal organizations. The Foundation now receives federal funds and is empowered by Congress to

establish standards for all aspects of the appraisal profession.

APPRAISAL REPORT:

This is the actual document in which the opinion of value is stated. Appraisal reports can be written, which is

always preferable, or oral. Both, according to USPAP, are subject to specific development and reporting

requirements.

APPRAISAL METHODOLOGY:

This is the procedures and rules for executing properly prepared appraisal reports.

ARBITRATION:

This is a way to settle a dispute. Arbitration is a proceeding in which a dispute is submitted to one or more

impartial parties for a binding determination made by the arbitrator. Arbitration is usually quicker, simpler and

cheaper than litigation but the perceived disadvantage is that there is no appeal. With a few narrow

exceptions, like fraud, there is no way to appeal an arbitrator’s decision.

APPRAISER:

This is the individual who values the items and prepares the appraisal document.

APPRECIATION IN VALUE:

This is an increase in value over time.

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ART ADVISORY PANEL:

The IRS Art Advisory Panel is composed of several generic groups of professionals: IRS staff appraisers,

museum directors and curators, art and antiques dealers, and auction house employees. The full panel

generally meets twice a year, while the IRS staff appraisers work full time reviewing appraisals that are

submitted to the IRS and preparing those appraisals deemed appropriate for submission to the whole panel.

The IRS appraisers are full time government employees while the other members of the panel serve two year

terms. Generally speaking, the Panel reviews objects valued individually above $20,000. However, the Panel

has been known to review as well objects valued considerably under that amount.

ASSEMBLED, ASSOCIATED OR MARRIED PIECES:

This term is used to describe a piece of furniture or other piece of decorative arts which has been composed of

parts from various pieces of furniture or woods from the same or other periods, e.g., a dressing table or lowboy

with a chest added to the top to make it into a tall chest or highboy; a refectory table with a 17th century base

and an 18th century top from another table. This is beyond a mere restoration and is almost an attempt at

deception unless the marriage is clearly identified as such when sold.

ASSUMPTIONS AND LIMITING CONDITONS OF THE APPRAISAL:

This is a listing in the appraisal document of those elements detailing the parameters of the appraisal

document, the responsibilities of the appraiser and the information and procedures for which the appraiser

does not assume responsibility. It is generally appropriate for the appraiser to explain why he/she has chosen

to exclude specific elements as part of the description of limiting conditions. According to USPAP, the appraiser

is required to identify and explain the circumstances and appropriateness of any assumptions, extraordinary

assumptions, hypothetical and limiting condition that have been used in an appraisal assignment.

AUCTION REPLACEMENT VALUE (ARV):

This term, usually for insurance purposes, is defined as a reasonable amount in terms of US dollars which

would be required to replace a property with another of similar age, quality, origin, appearance, provenance

and condition within a reasonable length of time in an appropriate and relevant auction market. Since the

client regularly and routinely buys at auctions, the appraiser rarely examines the retail market for this

valuation. When applicable, sales and or import tax, commissions and or premiums are included in this

amount.

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AUTHENTIC:

This term is used to describe pieces of furniture, decorative arts or fine arts which are of the period, right and

have no restorations or alterations.

BLANKET POLICY:

This term is used by insurance companies when articles of personal property are grouped together and given a

total value. A blanket policy may be based upon an appraisal or it may be a value the insured requested.

Typically a blanket policy is subject to limitations in values and carries a higher premium than one where items

are scheduled individually.

BLOCKAGE DISCOUNT:

This principle is applied to the valuation of large groups of similar and like items which, if sold during a limited

period of time, would result in a depression of the prices one might expect if the items were sold separately in

an ordinary market cycle. Consequently, blockage discount is narrowly defined as the percentage the appraiser

would apply to reduce the total valuation to compensate for this situation. Blockage discounts are normally

applied to estate valuations, especially in the case of artists’ estates where large inventories of the art works of

single artists must be valued. However, all appraisers should consider the applicability of blockage discounts

when valuing large groups of similar and like items. Blockage is a discount or reduction in value necessary to

allow a large group of similar objects to be absorbed by the market or sold at a specific date of valuation.

Sometimes it may be necessary to offer an economic inducement in the form of a reduced price to stimulate

the potential buyers in a given marketplace to purchase all the objects being offered for sale at one time. For

example, one may have to offer two for the price of one, four for the price of one, one hundred for the price of

one or whatever it may take to sell all the works. The term blockage discount comes from the world of finance

where shares in publicly traded companies are frequently offered at discounted prices when the volume of the

offering is too large for the market to absorb it at the full, undiscounted, price.

BURNT:

When an item is presented at auction and fails to sell, it is said to be burnt.

BUYER’S PREMIUM:

This is the percentage of the bid or “hammer” price paid by the buyer to the auction when purchasing an item.

The fee ranges between 5 and 25%. See also Seller’s Premium and Hammer Price.

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BUY IN (BI):

This occurs at auction when an object does not meet its reserve price and fails to sell.

CAPITAL GAINS TAX:

This tax is assessed on profits realized from the sale of a capital asset such as stock, bonds or personal

property.

CATALOGUE RAISONNE:

This is a scholarly catalogue which should include all the known works or all the known works in a specific

medium by the artist at the time of compilation of the book. Essential information identifying the works are

included making this the definitive reference book.

CAVEAT EMPTOR:

“Let the buyer beware.” This term means that the seller is not held responsible for the quality or authenticity of

the goods being sold.

CERTIFICATE OF AUTHENTICATION/AUTHENTICITY:

This is an official document which certifies that the piece in question is right and of the period and by the artist

designated. Some states including New York require specific information be included on a Certificate of

Authentication.

CERTIFIED APPRAISAL:

This is the document prepared by a certified member of an appraisal organization.

CERTIFIED APPRAISER:

One who is awarded this designation by a testing and self-regulating appraisal organization. For the AAA, the

appraiser is to pass the certification examination in appraisal theory and methodology and the test in an area

of specialization.

CIRCA:

“About” in reference to age; e.g. circa 1920 when describing the age of an object means that it was made

around that time period give or take 10 years.

CLEAR TITLE:

Good ownership one free from encumbrance, obstruction, burden or limitation

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COLLECTIBLE:

This term usually describes any item that has been mass produced and usually machine manufactured. Today

collectibles are typically manufactured items designed specifically for people to collect such as sports’ cards

and beanie babies.

COMPARABLES:

Finding similar and like objects to the one being appraised is the most commonly applied approach to

evaluation. An examination and analysis of the sales figures for similar works or comparable objects allows

the appraiser to arrive at the appropriate appraised value for the one under consideration. These figures are

mandatory for most donation appraisals and may be provided by the appraiser in other situations when the

appraiser judges them to be necessary.

CONSERVATION:

This is the treatment and preventative care of an object so that its condition does not deteriorate and the

object can remain stable. This is the preservation of a work of art involving careful maintenance and protection

of the item using materials and procedures which will have no adverse affects on the piece. See PRESRVATION

and RESTORATION also.

CONSULTING EXPERT:

This person is an appraiser who provides technical expertise and background knowledge to the attorney and

client in a litigious situation. Such expertise may be related to the quality of the object, the value of the object

or the methodology of the opposing appraiser. The work of the consulting expert is considered privileged and is

not discoverable in court because it falls under the Attorney Work Product Privilege.

COURT CASES:

When the taxpayer has been unable to negotiate a compromise with the IRS the taxpayer may chose to litigate.

Taxpayer suits against the IRS have the right to be pursued in all parts of the judiciary system. They can be

appealed up to the Supreme Court. While the decisions reached in these cases are specific to the individual

cases, they may cause the IRS to modify its procedures and requirements. All appraisers would be well

advised to study the relevant cases carefully since the decisions reached may cause the appraiser to modify

the way IRS appraisals are formulated and appraisal reports are written. Court cases are also sometimes

involved with divorce, insurance or damage and loss of value appraisals when the parties cannot agree on

valuation or any other matters under discussion.

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COVER LETTER:

A cover letter is a letter accompanying the appraisal which does NOT include the value of the appraised items.

CRAQUELURE:

This is the result of the uneven movements of canvas caused by the natural shrinking of the medium during

the aging process. Craquelure usually appears on the surface in a spider web like series of cracks. The surface

can be stabilized by relining the canvas and restoring the cracks.

CRAZING:

This is the fine and random cracking extending only through the surface of pottery, porcelain, stone or

concrete. The cracking can appear along or perpendicular to the length in polygonal shapes or as random

spider webs. Crazing is due to differential contraction between the surface and interior sections often due to

changes in temperature. Crazing has no structural or durability significance and does not by itself constitute a

cause for rejections. It can, however, mark the beginnings of disintegration. All ceramic and concrete products

and many natural stones under varying conditions of moisture and temperature are frequently subject to

crazing. In some Asian potteries and porcelains crazing is produced in a foreseen, admired and regulated

manner.

CULTURAL PATRIMONY:

These are objects involved in the Holocaust, items from past and present wars which were pillaged or removed

from their homeland or owners and those objects taken and robbed from underdeveloped and poor countries.

Today there is an effort to prevent the continuous exploitation and exporting of these treasures.

DEPRECIATION IN VALUE:

This is a decrease in value over time.

DIMS:

This is an abbreviation for dimensions.

DISCLAIMER:

The disclaimer is an explanation of facts either contained in the appraisal for which the appraiser does or does

not “disclaim” or deny responsibility. This is a listing of elements for which the appraiser does not accept

responsibility.

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DISCLOSURE/FULL DISCLOSURE:

Disclosure is the passing of information that is secret, not previously known (i.e., revelation) or which is

believed not to have been known previously. In an appraisal situation, this would include disclosing

confidential information shared by the client with the appraiser.

Full Disclosure, on the other hand, refers to the appraiser’s obligation to state all the work that was done or not

done in generating the appraisal report or any other factors which may, at a later date, alter the valuation

conclusion in the report.

DROIT MORAL:

French term for giving the authority to authenticate works of art, literally “moral right.”

DUE DILIGENCE:

A measure of prudence or activity that is properly expected from and ordinarily exercised by a reasonable and

prudent person under the particular circumstances; not an absolute standard but dependent on the relative

facts of the particular situation. In an appraisal situation, this refers to the amount of work one would expect

an appraiser to perform in order to arrive at a credible conclusion.

ESCHEAT:

This is the common law doctrine that operates to ensure that property is not left in limbo and ownerless upon

the death of the owner. It can be the forfeiture of all property including bank accounts to the state treasury if it

appears certain that there are no heirs, descendants or named beneficiaries to take the property upon the

death of the last known owner.

EQUITABLE DISTRIBTUION:

This term is generally used in a divorce situation or in the dissolution of a domestic partnership and is a fair

division of assets between two or more people. It is the process through which the assets of the partners or

family members are divided in a manner which is equitable based on several factors including the appraised

values of the objects in question.

EXECUTOR OR EXECUTRIX:

This is the person named in a decedent’s will to administer the estate and distribute the properties as the

decedent directed and in an equitable manner.

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FA (FINE ARTS):

This is the acronym for Fine Arts and may be required by insurance companies to designate those objects on

an insurance appraisal which include decorative art and antique objects such as furniture, metals, textiles,

drawings, paintings, prints and sculpture as opposed to Fine Arts Breakable (FAB) or Sterling Silver (SS).

FAB (FINE ARTS BREAKABLE):

This is the acronym for Fine Arts Breakable objects and may be required by insurance companies to designate

those objects on an insurance appraisal such as glass, porcelain, marble and mirrors as opposed to Fine Arts

(FA) or Sterling Silver (SS) objects which may be subject to a higher insurance premium.

FAIR MARKET VALUE (FMV):

FMV is usually for IRS purposes and is defined by IRS Section 1.170 and 20.2031 (b) as “the price at which

the property would change hands between a willing buyer and a willing seller, neither being under any

compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” According to Technical

Advisory Memorandum 9235005 (May 27, 1992), fair market value should include the buyer’s premium. IRS

Section 20.2031 (b) continues “the fair market value of an item of property includible in the decedents’ gross

estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be

determined by the sale price of that item in a market other than that in which such item is commonly

appropriate. Thus, in the case of an item of property includible in the decedent’s gross estate which is

generally obtained by the public in the retail market, the fair market value of such an item of property is the

price at which the item or a comparable item would be sold at retail.” (Treasury Regulation Section 1.170A –

13) (3) (1988) it should be noted that the IRS has changed the definition slightly in various sections of the

Revenue Code and other printed literature. In addition, Pamphlet 561 has also added the following to the

definition: “If you put a restriction on the use of property you donate, the FMV must reflect that restriction.”

FAKE:

This is an object that has been made to deceive and is sold as something that it is not.

FINE ARTS INSURANCE POLICY:

An insurance policy which covers the fine arts contents of a home. Fine arts are generally defined broadly and

can include not only two-dimensional art and sculpture but also decorative arts, furniture and collectibles.

These policies may require individual scheduling of items or a blanket policy to cover all the items. Fine arts

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insurance policies generally vary from insurance carrier to carrier; one would be well advised to examine each

policy closely.

FEDERAL TAX REGULATIONS:

These regulations are published by the Department of Treasury which has oversight authority over the Internal

Revenue Service. The regulations are published from time to time to explain the tax law in the Internal

Revenue Code. It offers explanation and examples illustrative of the principles stated in the revenue code.

FORCED LIQUIDATION VALUE (FLV):

This is the lowest range “NET” value, usually for a quick and forced sale purpose. It is defined as “the most

probable price in terms of cash, or other precisely revealed terms, for which the property would change hands

if sold immediately, without regard to the relevant market place.

FORGERY:

This is a copy executed by someone other than the original artist with the intent to present the object as the

original. This is the generic term for both fakes and frauds.

FOXING:

Brown spots caused by acid on paper or textiles.

FRAUD:

This is a work of art which has been altered, misattributed or otherwise disguised or misrepresented to be what

it is not.

FRENCH GRID SYSTEM:

The name given to a system by which an object is divided into quadrants such as square inches or centimeters

and a value is assigned to an individual quadrant. Presumably the value of the whole can then be determined

by multiplying the number of quadrants by the value assigned to one unit. Appraisers of personal property are

discouraged from using this methodology unless a clear and compelling rationale for its use can be

established.

GOOD FAITH EXCLUSION:

This is an IRS term. Under the law governing donation appraisals, an appraiser who writes an appraisal which

is 150% above which the IRS determines as appropriate can be subject to sanctions. However, if the Director

of Practice determines that the appraisal report in question was written in good faith, the Director has the right

to exclude the appraiser from the specified sanctions.

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HAMMER PRICE:

This is the actual bid price at auction as the hammer falls and does not include the buyer’s premium. See also

Buyer’s Premium and Seller’s Premium.

HIGHEST AND BEST USE:

The term is commonly used in real estate property appraising (See Sacramento Southern Railroad Company vs.

Heilbron, 156 Cal 408) and has been carried over by some into the realm of personal property. Basically the

term means that, when feasibly possible, one should evaluate personal property in the most appropriate

marketplace where it will bring the highest price. The term typically is defined as the examination of the use of

the property, which will result in its highest value. In an appraisal this cannot be merely theoretical but must be

realistic in that the use must be legal, physically achievable and financially feasible. Oftentimes personal

property appraisers refer to highest and best use as the highest attainable price for an object. Many personal

property appraisers have trouble with this definition and object to the carry over from real property. While the

concept of use may be appropriate for depreciable personal property such as machinery and equipment, it has

questionable relevance in the world of appreciable personal property such as art, antiques and collectibles.

While some appreciable personal property can be “used,” the motivation of the majority of collectors is not

structured by the object’s functional purpose but rather its aesthetic appeal. With this in mind, it has been

argued that one does not begin to apply a term which is relevant to exceptions but rather terms applicable to

the majority of situations are more appropriate. It has been suggested that the term “highest attainable price”

may be the better term for appreciable personal property.

HYPOTHETICAL APPRAISALS:

This is the type of appraisal done when the item is no longer in the possession of the owner because of a fire,

flood or other loss. When the appraiser cannot examine the object or is only given photographs of the non-

existent object that the appraiser states that the appraisal is hypothetical or written on the basis of the

information supplied usually by the client. The appraiser’s report is based upon a supposed situation or group

of assumptions.

HYPOTHETICAL CONDITIONS:

According to USPAP, the definition of a hypothetical condition is that which is contrary to what exists but is

supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts

about physical, legal or economic characteristics of the subject property or about conditions external to the

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property such as market conditions or trends or about the integrity of data used in an analysis. Appraisals of

damaged objects or appraisals done from a photograph used hypothetical conditions. A hypothetical condition

may be used in an assignment only if 1) the use of the hypothetical condition is clearly required for legal

purposes, for purposes of reasonable analysis or for purposes of comparison; 2) the use of the hypothetical

condition results in a credible analysis and 3) the appraiser complies with the disclosure requirements set

forth in USPAP for hypothetical conditions.

IMPAIRED FAIR MARKET VALUE:

Putting a restriction on the use of the property being donated implies that the fair market value is restricted

and reduced.

IN THE STYLE OF:

Means that an item is not of the period in which it was supposed to have been made but rather was made at a

later time as a copy of the earlier piece.

INPAINTING:

Similar to overpainting, this is a technique commonly used by conservators to unify a painting which has

suffered paint loss. Inpainting is paint applied over paint losses on a canvas or other media.

INTERNAL REVENUE CODE:

This is the tax law which has been structured and passed by Congress and signed by the President of the

United States and remains the ultimate authority on tax matters until it is changed or amended by Congress.

Internal Revenue Regulation 1.170.A relates to Income Tax Charitable Deductions and allows as a deduction

any charitable contribution which is made during the taxable year. Section 1(c) (1) provides that if a charitable

contribution is made in property other than money the amount of the contribution is generally the fair market

value of the property at the time of the contribution. Section 1(c)(2) provides that the fair market value is the

price at which the property would change hands between the willing buyer and the willing seller with neither

being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. Section

13 states information regarding the record keeping and return requirements for deductions for charitable

contributions. For a deduction for a charitable contribution of property in excess of $5,000, Section 13(c)

requires that a qualified appraisal be prepared. Internal Revenue Regulation 20.2031 relates to the Estate

Tax. Section 2031 provides that the value of the gross estate of a decedent is determined by including the

value at the time of death of all property wherever it is situated. Section 20.2031-1(b) provides that the value

12

of the property is includible in a decedent’s gross estate is its fair market value at the time of the decedent’s

death. Section 2032(a) provides that the executor may elect to determine the value of all the property in the

gross estate as of six months after the decedent’s death. This is known as the Alternate Date of Valuation.

Property distributed, sold, exchanged or otherwise disposed of within the six months after death must be

valued as of the date of distribution, sale, exchange or other means. Section 20.2031-6(b) provides that if

there are items among the personal effects or the household, articles with artistic or intrinsic value of a total in

excess of $3,000, an appraisal, under oath, must be filed with the estate tax return. Section 20.2031-6(b)

provides that if expert appraisers are employed, care must be taken to see that the appraisers are reputable

and of recognized competency to appraise the particular class of property involved.

JOINT AND FRACTIONAL GIFTS:

On occasion a number of people with equal or unequal ownership may donate an object or a group of objects

to a non-profit institution. Separate appraisal with separate values must be made for each of the donors.

LAUNDRY LIST:

This refers to a listing of object, similar to an inventory with no description and no information regarding the

object other than exactly what it is without any measurements. Listing objects in this cursory and seemingly off

hand manner is inappropriate for a professional appraiser to use when preparing an appraisal report.

LETTER OF TRANSMITTAL:

This letter, addressed to the client accompanying the appraisal, is a summary of the appraisal. This letter must

include all of the elements of USPAP including the name of the client, the purpose of the appraisal, the date of

the appraisal and the effective date of the appraisal, for whom the appraised is being executed, where and

when the property was seen, value and the definition of value used, the valuation methods and market

analyses, the number of items appraised, the total value of those items, the number of pages in the report, the

statement of disinterest on the part of the appraiser, the statement of the fee structure, the credentials of the

appraiser, the statement of compliance with a given code of ethics, a statement that the report can only be

presented in its entirety, a statement that the appraisal can only be used by the party or parties for whom it

was written and only for the stated purpose and the appraiser’s tax identification number (the latter only for

IRS donation appraisals). In the instance of a charitable donation appraisal, the appraiser may include the

name of the donee institution in the letter. All assumptions, extraordinary assumptions, hypothetical and

limiting conditions must also be included in a transmittal letter.

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LINED:

This term usually refers to a painting on canvas that has been supported by another layer of canvas due to the

deterioration of the original support.

LIQUIDATION VALUE:

This value is based on the price realized in a sale situation under moderately forced or limiting conditions and

under time constraints. This action may be initiated by the owner or a crediting institution. It is implicit in this

definition that Liquidation Value will generally be lower than other types of valuation.

LKQ (LIKE, KIND, QUALITY):

This abbreviation stands for the insurance terms LIKE, KIND, QUALITY and is the equivalent of an object with

comparable attributes.

Long Term Capital Gains Property:

This is an IRS concept used in conjunction with donation appraisals. It refers to property that has been held for

a designated period of time, after which the owner, upon donation, is entitled to a tax deduction based on the

object’s fair market value on the specified dates of valuation.

MARGINAL UTILITY:

In economics, under the mainstream assumptions, the marginal utility of a good or service is the increase in

usefulness obtained by consuming or using one more unit of that good or service. The concept is derived from

attempts by economists to explain the determination of price. The consumer’s decision to buy is not all or

nothing. Instead, it is a decision to buy or not to buy just one more unit. That means it is a mistake to look at

the total utility of the two goods as the basis for demand. The total utility is irrelevant to the decision to buy or

not to buy one more unit. What is relevant to any decision is what is gained or lost depending on how the

decision is made and only a part of the total utility is gained or lost as a result of the decision to buy or not to

buy one more unit of the good. Economists call the part of utility that is gained or lost in the decision to buy one

more unit the marginal utility

MARITAL DEDUCTION:

This is a tax provision which allows one spouse to transfer upon death an unlimited amount of property to

his/her spouse without incurring estate or gift taxes.

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MARKET VALUE (MV):

This value is the most probable price at which a property would sell in a competitive and open marketplace

where the sale needs to be consummated within a specified time frame and neither the buyer nor the seller

are under a compulsion to buy or sell. In addition, the object to be sold needs to have had sufficient market

exposure for a reasonable amount of time and payment is made in terms of cash in American dollars or

comparable financial arrangements are made. This term is essentially the same as fair market value except

this term does not have the provision stating that there is no compulsion to buy or sell within a specified period

of time. USPAP cautions appraisers to identify the exact definition of market value and its authority applicable

in each appraisal completed for the purpose of market value.

MARKETABLE CASH VALUE (MCV):

This is a net value usually for equitable distribution, resale or estate planning purposes. The value realized, net

of expenses, by a willing seller disposing of property in a competitive and open market to a willing buyer, both

being reasonably knowledgeable of all relevant facts, and neither being under constraint to buy or sell.

Marketable cash value takes into consideration insurance, dealer commissions, advertising, travel and

shipping expenses that may be involved in the sale. Implicit in this definition is that a sale takes place within

an agreed upon time period with a specified method of payment and that the sale take place in the best

available marketplace and that sufficient time is allowed to advertise the property properly. This term is usually

for equitable distribution, when tangible property may be exchanged for cash or other financial arrangements

or resale or estate planning purposes.

MARRIED, ASSEMBLED OR ASSOCIATED PIECES:

See ASSEMBLED (Above)

MEDIATION:

This is a way to settle a dispute and is a process by which parties to a dispute voluntarily select an impartial

third party to facilitate a resolution of the issues by the parties themselves. The need for mutual agreement is

deemed by some to be the major weakness in the mediation process. If one of the parties is unreasonably

stubborn, it will be difficult to reach an agreement.

MEDIUM:

There are at least four definitions of this term: 1.) The material the item is made from or the art is produced

upon and may include white or black paper, canvas, board, cel (acetate), sculptures; 2.) The specific tool and

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material used by an artist, e.g., brush and oil paint, chisel and stone; 3.) The mode of expression used by the

artist, e.g., painting sculpture, the graphic arts; 4.) A liquid that may be added to a paint to increase its

manipulability without decreasing its adhesive, binding or film forming properties.

METHOD OF CONSTRUCTION:

This describes the way or ways in which an object has been made.

MICROSCOPY:

This is the in-depth microscopic evaluation of an object to determine its age and/or authenticity.

MINT CONDITION:

This term describes artwork or objects which are in the same condition as when they were originally finished,

printed, made. A term taken from coinage, this is the same condition as when it was minted.

MOST APPROPRIATE MARKET OR MARKETPLACE:

This is the venue in which the appraiser determines an object can be sold most easily and at the highest price.

Frequently in the case of personal property, where comparables are scarce, the most appropriate market can

be a combination of auction and private gallery sales.

NO COMMERCIAL VALUE:

This usually refers to an object, a group of objects for which it is not reasonable to assign a monetary value,

usually in estate situations and this might include the mattress and box spring.

OBJECT IDTM :

A generic classification methodology codified by the Getty Information Institute (Getty Museum) which lists nine

fields for the minimum description of all works of art.

OF THE PERIOD, RIGHT or CORRECT:

An object which has been made at or during the time ascribed to it.

OPPORTUNITY COST:

The advantageous price one would pay for purchasing in bulk.

ORDERLY LIQUIDATION VALUE (OLV):

This term, a low range net value usually for quick sales purposes, is defined as the most probable price in

terms of cash or other precisely revealed terms for which the property would change hands under required and

limiting conditions in an orderly manner and generally advertised and with knowledgeable buyers advised.

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ORPHAN:

This term refers to a single piece left from a set or a pair.

OVERPAINTING:

This explains when paint is applied to a painting over already dry areas of paint. Sometimes used to include the

original artist’s glazes and sometimes especially used in conservation, this term means only later restorers’

work. Overpainting is similar to inpainting (see above) except only inpainting fills in lost areas without covering

the original paint.

OXIDATION:

This is the binding of oxygen to a metal to form rust or the binding of oxygen to wood to darken it.

PARTIAL APPRAISALS:

This type of appraisal is an estimate of the value of the object or objects as requested by the client wherein the

client does not want a written professional, thoroughly researched appraisal document. The appraisal is

usually presented in a verbal form or the written document does not follow the proscribed proof of valuation or

the necessary boiler plate language to protect the appraiser. If the appraiser has an Errors and Omission

insurance policy, he/she may be in violation of that policy by presenting a partial appraisal. Using a POV,

discussed herein, is advisable. N.B. This is in strict opposition to USPAP.

PATINA:

This is the buildup of a film produced by oxidation on the surface of an object. This term also refers to the final

coating that is applied to a bronze by the artist or the foundry crafting the bronze.

PERSONAL PROPERTY:

Defined by USPAP as “identifiable tangible objects that are considered by the general public as being

“personal” for example, furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and

equipment; all tangible property that is not classified as real estate.” USPAP does not mention that there are

two general classifications of personal property: depreciable personal property or property that is expected to

depreciate in value over time, and appreciable personal property or property that has the potential of

increasing in value over time. Most machinery and equipment will depreciate in value once they are used,

while art, antiques and collectibles have the potential of increasing in value as the demand in the collectors’

marketplace increases as time goes by.

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PREMIUM:

See buyer’s premium, seller’s premium and hammer price.

PRESERVATION:

Related to conservation and restoration, preservation actions are taken to prevent further changes or

deterioration in objects, sites or structures. See CONSERVATION and RESTORATION also.

PRIMARY MARKET:

The primary market is one created either by the maker or agent of the maker when an object is sold for the

first time, usually in galleries or stores. The secondary market is the venue for the sale of an object between a

seller and a buyer with neither of having participated in the creation or initial sale of the object. In the instance

of multiples, a valid secondary market cannot exist while the maker or his agent retains a supply of the original

offering.

PRIMARY SOURCE:

This material, used in research and data comparisons, is from a first hand witness and includes auctions

attended, galleries, art fairs and stores visited and actual comparables witness by the appraiser.

PRIMARY WOOD:

A piece of period furniture is usually made from two different types of woods, the first being the primary wood

or the use of more of this wood which is seen on the outside as opposed to secondary wood, usually reserved

for use in the interior of the case.

PRINCIPLE OF CHANGE:

Change recognizes the shifting importance of other principles and explains the cycles of market development,

stabilization, decline and renewal

PRINCIPLE OF CONTRIBUTION:

This term often relates to the “good, better, best” qualities of an item

PRINCIPLE OF PROGRESSION:

This term refers to the increase in interest/value that lower valued items may realize from their association

with higher value items.

PRINCIPLE OF REGRESSION:

This term states that higher valued items may suffer a decrease in value from association with lower-valued

properties.

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PRINCIPLE OF CONTRIBUTION:

This term often relates to the “good, better, best” qualities of an item

PRINCIPLE OF REVERSILITY:

Whatever process is used to restore a painting or a piece of furniture, pottery or porcelain needs to be able to

be reversed so that if, in time, what was done is shown not to be appropriate then that restoration can be

removed and the object can be returned to the state in which it was prior to the restoration job.

PRISTINE/MINT/PROOF CONDITION:

Excellent condition, as if new and usually in its original packaging or box

PRIVATE LETTER RULINGS:

From time to time the IRS sets forth specific rulings in response to requests from individual tax payers. These

rulings are specific to the case by case situations presented by the taxpayer. While these rulings cannot be

used as vehicles for precedent setting, they do reflect the reasoning of the IRS and give clear indications of

how the IRS will react if a similar situation in another case is brought to their attention. All taxpayers and

appraisers would be well advised to study these rulings closely.

PRIVATE TREATY SALE:

This is a sale which occurs following an auction where the object being sold did not sell at the event and sells

privately thereafter.

QUALIFIED APPRAISER:

A Qualified Appraiser Is an individual who has earned an appraisal designation from a recognized professional

appraiser organization or has otherwise met minimum educational and experience requirements set forth in

regulations prescribed by the IRS. The minimum education and requirements are met if the appraiser has

successfully completed college or professional level course work that is relevant to the property being valued;

obtained at least two years of experience in the trade or business of buying, selling or valuing the type of

property being valued; regularly performs appraisals for which the individual receives compensation; and

meets such other requirements as may be prescribed by the IRS in regulations or other guidance.

QUALIFIED APPRAISAL:

A Qualified Appraisal is an appraisal conducted by a qualified appraiser in accordance with generally accepted

appraisal standards. The IRS further states that an appraisal will be treated as having been conducted in

accordance with generally accepted appraisal standards if it is consistent with the substance and principles of

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the Uniform Standards of Professional Appraisal Practice also knows as USPAP. For donation purposes the

appraisal report must be prepared by a qualified appraiser not more than sixty days before the date of the

contribution of the appraised property. The appraisal must be signed and dated by a qualified appraiser who

charges an appraisal fee that is not based on a percentage of value and that contains the following

information: a detailed description of the property; the physical condition of the property; the date or expected

date of the contribution; the terms of any agreement or understanding entered into or expected to be entered

into by or on behalf of the donor that relates to the use, sale or other disposition of the property contributed;

the name, address and taxpayer identification number of the appraiser; a detailed description of the

appraiser’s background and qualifications a statement that the appraisal was prepared for income tax

purposes; the date on which the property was valued; the appraised fair market value of the property; the

method of valuation used to determine the fair market value; the specific basis for the valuation including any

comparable sales transactions and a description of the fee arrangement between the donor and the appraiser.

REAL PROPERTY:

This refers to land and the building/s attached to the land. For a building to be part of real property, the land

and the building must share the same title. If not, the building becomes part of personal property.

RECTO:

This refers to the right hand page of a book or the front side of a leaf or picture, on the other side of VERSO.

REFINISHED CONDITION:

This occurs when a piece has been stripped or skinned of its original patina and now sports a new finish.

REFRESHED CONDITION:

This is a relatively new term which refers to the repainting of a piece of furniture.

RELATED USE RULE:

This IRS rule is applied to charitable contributions and states that to receive the full allowable tax deduction a

donor must donate property to an institution whose mission explicitly includes the acquisition and use of such

property.

REPLACEMENT VALUE:

The amount it would cost to replace an item with one of similar and like quality purchased in the most

appropriate marketplace within a limited amount of time. Replacement value is applied, almost exclusively, to

insurance policies and is generally the highest valuation figure for personal property.

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REPRODUCTION:

This term refers to a piece made as an exact copy or in the mirror image of the original of a period piece but is

not made to deceive.

RESALE VALUE:

This is the price at which the item can be sold in the marketplace.

RESERVE:

This term refers to the minimal amount for which a consignor agrees to sell a work for at auction. By law, the

reserve must be at or below the low estimate. Typically a reserve is about 50 to 25% below the low estimate.

RESTORATION:

This is the process whereby, if an object has lost a part and that missing part or piece is replaced or restored to

simulate the original the object can be returned as closely as possible to its original condition. See

CONSERVATION and PRESERVATION also.

RETAIL REPLACEMENT VALUE (RRV):

This is the highest value, usually for insurance purposes and is defined as the highest amount in terms of US

dollars that would be required to replace a property with another of similar age, quality, origin, appearance,

provenance and condition within a reasonable length of time in an appropriate and relevant market. When

applicable, sales and or import tax, commissions and or premiums are included in this amount.

RETAIL VALUE:

Used to establish a price guideline for retail pricing, the appraised retail value is derived from retail

replacement value. It is defined as a reasonable amount in terms of US dollars that would be required to

purchase a property of similar age, quality, origin, appearance, provenance and condition with a reasonable

length of time in an appropriate and relevant market. Unlike retail replacement value, retail values do not

include any fees or additional costs such as taxes, framing, conservation, restoration and additional

commissions.

RETAIL REPLACEMENT VALUE (RRV):

This term is defined as the highest amount in terms of US dollars that would be required to replace a property

with another of similar age, quality, origin, appearance, provenance and condition within a reasonable length of

time in an appropriate and relevant marketplace. Usually used for insurance purposes, also included in this

amount, when applicable are sales and/or import tax, commissions and/or premiums.

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REVENUE PROCEDURES (REV. PROC.):

Revenue Procedures are termed “guidelines” by the IRS. They set forth a methodology for dealing with general

situations. The taxpayer and the appraiser would be well advised to take these guidelines seriously and to

view them as IRS requirements rather than elective procedures which the term “guideline” may indicate to the

inexperienced appraiser. The IRS expects these guidelines to be followed and the courts have indicated that

this expectation is reasonable. In addition the IRS has been known to apply these guidelines to appraisal

situations which may not be specifically addressed in the guidelines themselves. For example, Rev. Proc. 66-

49 sets forth guidelines for donation appraisals; however, the IRS has been known to ask for the reporting

elements stated in these guidelines to be followed for estate appraisals as well.

REVENUE RULINGS:

These rulings complement the private letter rulings discussed above. While the private letter rulings are

directed to specific cases brought to the attention of the IRS, the revenue rulings set forth the general

principles addressed in specific private letter rulings. They also give tax consequences applicable to the

general situations addressed in the rulings.

RIGHT, CORRECT or OF THE PERIOD:

This term indicates that the object that is of the period, by the ascribed artist and is not a reproduction.

SALVAGE VALUE (SV):

This is a valuation term implying abandonment by the rightful owner in which the person recovering the

property may be entitled to a pre-agreed percentage of any net price realized in a future sale. Although there

have been some exceptions, salvage is generally the lowest or rock bottom price realized in a sale situation.

This is the net price in cash or other precisely revealed terms for which the property would change hands if sold

immediately without regard to the relevant marketplace and appropriate use. In certain cases, this may be a

negative value because labor and other costs may be required to disassemble and dispose of the property in a

quick, forced and expedient manner.

SCHEDULED ARTICLES:

This term is used by insurance companies when articles of personal property are individually listed, described

and valued on an insurance policy. Although some insurance companies will accept a receipt of a recent

purchase, the schedule is typically based on an appraisal. Typically scheduled items carry a lower insurance

premium than items which are under a blanket insurance policy.

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SECONDARY MARKET:

This term refers to the marketplace where a used object is bought and sold. Once an item is no longer

available from the original source, it is considered a secondary market item and usually refers to the auction

market and is in no way associated with the value or the condition of the object. The secondary market is the

venue for the sale of an object between a seller and a buyer with neither of them having participated in the

creation or initial sale of the object, usually through auction but can also be in galleries. In the instance of

multiples, a valid secondary market cannot exist while the maker or his agent retains a supply of the original

offering.

SECONDARY SOURCE:

Examples of secondary sources utilizing exact primary sources in research and data comparison are ArtNet,

ArtFact, P4a, Gordonsart, Art-Sales-Index, newel.com and other Internet research tools.

SELLER’S PREMIUM

This is the percentage of the bid or “hammer” price paid by the seller to the auction when selling an item. The

fee ranges from nothing to 35% and may be more negotiable than the Buyer’s Premium. See also BUYER’S

PREMIUM and HAMMER PRICE.

SENTIMENTAL VALUE:

This is never a monetary value but rather an emotional valuation not based on market factors or aesthetics.

SKINNED CONDITION:

This term refers to a piece of furniture which has been stripped of its original patina and also describes a paper

condition where skinned paper indicates the paper has lost a layer of fibers.

SS (STERLING SILVER):

This is the acronym for sterling silver objects and is often required by insurance companies to designate the

objects on a written report which may be subject to a higher insurance premium.

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS:

These terms or concepts are generally linked together in most appraisals. An ASSUMPTION is that which is

taken to be true. An EXTRAORDINARY ASSUMPTION is an assumption, directly related to a specific assignment,

which, if found to be false, could alter the appraiser’s opinions or conclusions. A LIMITING CONDITION refers to

conditions that limit the appraiser’s examination or research of the appraised items and the appraisal

assignment. HYPOTHETICAL CONDITIONS are those which are contrary to what exists but are supposed for the

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purpose of analysis. According to USPAP, all assumptions and conditions must be listed and qualified in every

appraisal.

STEPPED UP BASIS:

This is a tax term and refers to a value that is used to determine profit or loss when property is sold. If

someone inherits property that has increased in value since the deceased person acquired it, the tax basis of

the new owner is stepped up to the market value of the property at the time of death. The stepped up basis

means that when the property is eventually sold there will be less taxable gain.

STYLE; IN THE STYLE OF:

This refers to a piece made after the original would have been made and has the same features as the original

just made years later.

TAX IDENTIFICATION NUMBER (TAX ID):

The tax ID number is an IRS term and requirement. In most cases, this is the social security number of the

appraiser which the IRS requires the appraiser to list in certain types of appraisals with the appraiser’s

signature. In this way, the IRS can impose sanctions on the appraiser should they be warranted.

TERTIARY MARKET:

This marketplace occurs in a forced sale situation such as liquidation or salvage sales.

TESTIFYING EXPERT:

This is an appraiser who not only provides technical expertise and background knowledge to the attorney and

the client in a litigious situation but is also used on the witness stand to explain complex valuation issues and

to express expert opinions and conclusions as they relate to the object or objects in dispute. Such expertise

may be related to the quality of the object, the value or the object or the methodology of the opposing

appraiser. The work of the testifying expert is discoverable in court.

THERMOLUMINESCENT TEST:

This is the definitive way to tell the true age of pottery, stoneware, porcelain, bronze and terra cotta. There are

a handful of thermoluminescent labs worldwide which perform the thermoluminescent test. The most

prominent lab is in Oxfordshire, England. Today most large auction houses will not put an item on sale without

a certificate showing that the test has verified the artifact’s age. To test an object’s thermoluminescence, a

small sample (about 100 milligrams) is heated to extreme temperatures. Most mineral materials store up

increasing amounts of radioactive energy that is drawn from radioactive decay in and around the mineral.

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When heated (thermo), most minerals release the stored energy in the form of light (luminescence). By

measuring the amount of light released from a material, one can calculate how many years have passed since

the artifact was fired. Generally, the more light released the older the item is.

ULTRAVIOLET LIGHT (UV):

These are short, high energy invisible light waves beyond violet in the spectrum of light with a length of 250 to

400 nanometers.

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP):

These are the appraisal procedures and guidelines for conducting and writing appraisals published by the

Appraisal Standards Board of The Appraisal Foundation. First codified in 1987, these standards apply to all

disciplines of appraising and are predicated on the concept that there is common methodology which can be

found in all aspects of appraisal practice including appraisal, appraisal review and appraisal consultancy.

VALUATION APPROACHES:

COMPARATIVE MARKET DATA APPROACH:

This is the most commonly applied approach when appraising personal property in which appraised value is

based upon past prices for similar works by the same artist or artisan or similar works by another artist or

artisan of equal standing and related reputation.

COST APPROACH:

This approach is used to determine the value of an object based upon the cost of duplicating or recreating the

identical piece. This approach may be applied to the decorative arts when the methods of construction or

materials used are replicable and of significant inherent value.

IINCOME APPROACH:

This approach is used to determine the value of a work of art or object which will be used to generate future

income. This is most often done through leasing, rental or creating reproductions but not through a one-time

only sale with transfer of title and/or copyright.

VALUE:

This is a dollar amount dependent upon the type of appraisal report being written: insurance, IRS, equitable

distribution for divorce proceedings or liquidation. The appraiser must state which value is being used and give

a clear, concise definition of that value and cite the source for the definition.

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VALUE IN EXCHANGE:

This term refers to the ability to trade an item or asset, especially money, for other goods and services that can

then be used to satisfy wants and needs. Value in exchange means that value that is satisfaction, is obtained

indirectly through the acquisition of something else. For an item to have value in exchange, it need NOT have

value in use, value obtained directly from the consumption of a good or service.

VALUE IN USE:

This term refers to the satisfaction of wants and needs provided by the direct consumption of goods and

services. Acquiring value from the use of goods and services is really the ultimate goal of economic activity. It is

the final step in the production, allocation and consumption activities that are undertaken to address the

fundamental problem of scarcity. Value in use should be contrasted with the similar phrase VALUE IN

EXCHANGE.

VERSO:

This term refers to the left hand page of a book or the back side of a leaf or a picture on the other side of

RECTO.

VINTAGE:

This is a widely used term referring to an object that was formerly in vogue but not more than 100 years old.

This definition may vary by object, i.e., a vintage fountain pen is generally thought to be one manufactured pre-

1965.

WATERMARK:

This is a design left in the paper by the paper manufacturer and is seen when the paper is held against the

light. This mark is used to trace the origin of the paper. Special markings for an artist or publisher may

incorporate a signature or a device and can be used to detect fakes although even watermarks can be faked.

Watermarks on hand made papers are made by very low relief molds or designs of fine wire set on the screen

on which the moist pulp collects.

WORK SIZE:

This refers to the dimensions of works on panel or board. When the word “sight” is used in conjunction with

work size, it refers to the dimensions of the visible image of the work.

APPRAISER'S LETTERHEAD Date Client Name Address City, State Zip Dear Client Name: This letter will confirm our agreement dated Month/Day/Year as to the preparation of the appraisal to be done on Month/Day/Year. The property to be appraised is broadly described as follows: Type of Property ("Property"). The Property is located at City, State where you will arrange for us to physically inspect the Property and at which time you will supply us with any factual information about the Property within your knowledge. You represent and warrant that you own the Property free and clear of any claims, liens, encumbrances or interests of others. You agree that we may consult with others in connection with this appraisal. In preparing the appraisal, Appraiser’s Name will inspect the Property, prepare a detailed description of the property, evaluate it and submit a written and signed report to you. In so inspecting and evaluating the Property, Appraiser’s Name will principally rely on methods of (stylistic analysis, it being understood that methods of scientific testing are outside his/her particular area of expertise) (scientific testing, it being understood that methods of stylistic analysis are outside his/her particular area of expertise) (delete one method) The appraisal will be prepared solely for the purpose of Non-cash Charitable Donation/Estate Tax Liability/Insurance/etc., and will be used by you, and only you, solely for such purpose. Said appraisal shall not be disseminated to, nor relied upon nor used by, any third party unrelated to the immediate purpose of this appraisal. The fee for said appraisal shall be $0000 per hour/day. In addition, expenses for travelling and other out-of-pocket expenses shall be charged to you. The fee and expenses shall be due and payable upon delivery of the written report. An advance of 000% of the estimated fee and/or expenses is due (upon signing of this letter of agreement) (upon commencement of the appraisal inspection) (delete one). An additional fee will be charged for any required future services pertaining to this appraisal. Our appraisal will represent our best judgment and opinion as to the current [fair market/replacement] value and other factors stated in the appraisal of the Property. However, the appraisal will not be a statement or representation of fact nor is it a representation of

warranty

with respect to authenticity, period of creation, description, genuineness, attribution, provenance,

title or condition. You shall indemnify, defend and hold us harmless from and against any actions, claims, liabilities or expenses (including reasonable attorney's fees) incurred as a result of claims based on or arising from the appraisal, by third parties unrelated to the immediate purpose of this appraisal. (Optional Clause for IRS Appraisals)(If the appraisal is prepared for tax purposes, we will follow the requirements for a "qualified appraisal" as set forth in the Internal Revenue Code and the regulations therein to arrive at our best judgment and opinion as to the current fair market value of the Property. Other than for our gross negligence, you agree to indemnify, defend and hold us harmless from and against any actions, claims, liabilities, expenses or penalties (including reasonable attorney fees) incurred as a result of a claim based on or arising from the appraisal that is asserted by the Internal Revenue Service against us under the provisions of sections 6695A and 6701 and/or related provisions of the IRC.) Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrator(s) may be entered in any Court having jurisdiction thereof. If you are in agreement with these terms, please sign and return one copy of this letter to us at your earliest convenience. _______________________________ __________________________________ Appraiser Client

Coverage Details

! Broad definition of Professional Services includes personalproperty appraising, expert witnessing, court testimony, artconsulting and public speaking

! Policy available with multiple limit and multiple deductibleoptions to fit your business needs or to meet contractualobligations

! Travelers can also add a $25,000 limit for first party IDFraud Expense Reimbursement for you and your employees

What You Will Get

Fast Turnaround time. With a completed application andfinancials we should be able to obtain a quote for you within48 hours

An A+ rated insurer, Travelers, who is extremely stable inthese uncertain times

A trusted insurance advisor, DeWitt Stern, who has the abili-ty to service any of your business's other insurance needs

Please see policy contract for exact terms and conditions ofcoverage and applicable exclusions.

Errors & Omissions Insurance Applications from members ofthe Appraisers Association of America should be maileddirectly to:

Robert RosenzweigAssociate Account ExecutiveDeWitt Stern420 Lexington Avenue, Suite 2700New York, NY 10170(212) [email protected]

PROFESSIONAL LIABILITY INSURANCE FOR AAA MEMBERS

Offered by Appraisers Association of America and DeWitt Stern and underwritten byTravelers Insurance Company

www.dewittstern.comSan Francisco

415.677.6000

Chicago

312.819.6821

Los Angeles

818.623.5400

New York

212.867.3550

7/03 APPROPRIATE MARKETS PURPOSE OF APPRAISAL DEFINITION OF VALUE MARKET LEVEL APPROACH Insurance RRV Retail/major & Cost/Market Comparison Inventory minor auction Insurance RRV Retail/major & Cost/Market Comparison/ Loss minor auction Income Insurance RRV/SV Retail/major & Cost/Market Comparison/ Damage minor auction Income IRS - Estate FMV Major & minor Market Comparison (No spouse) auction/retail IRS - Estate (spouse) FMV Major & minor Market Comparison (Cap. Gains) auction/retail IRS - Donation FMV Major & minor Market Comparison

auction/retail IRS - Gift FMV Major & minor Market Comparison

auction/retail IRS - Loss FMV Major & minor Market Comparison (No Insurance) auction/retail Equitable MCV/SV Major & minor Market Comparison Distribution auction (Divorce Business Dissolution, Estate Planning) Resale MCV Major & minor Market Comparison

auction Orderly MCV/LV/SV Major & minor Market Comparison Liquidation auction/consignment Disorderly MCV/LV/SV Minor auction Market Comparison Liquidation Flea market Courtroom Testimony RRV/FMV/MCV/ Retail/auction/ Market Comparison/ LV/SV etc. Cost/Income Verbal DO NOT DO!!! NOTE - PLEASE BE AWARE THAT EXCEPTIONS EXIST IN EACH CATEGORY. RRV = Retail Replacement Value FMV = Fair Market Value MCV = Marketable Cash Value LV = Liquidation Value SV = Selvage Value