CFA CFA Insurance Appraisal & Estate Valuation 2

Question 1

When firearms are included in a decedent's estate, what value standard is required for federal estate tax purposes?

Accepted Answer

Fair market value as of the date of death

Answer

The IRS requires estate assets, including firearms, to be appraised at fair market value as of the date of the owner's death.

Question 2

Who typically engages a firearms appraiser when guns are part of a probate estate?

Accepted Answer

The estate executor or administrator

Answer

The estate executor or administrator holds fiduciary responsibility for inventorying and valuing estate assets and is the party who engages the appraiser.

Question 3

What additional legal step must an estate executor complete before transferring NFA-regulated items to heirs?

Accepted Answer

ATF Form 4 approval and payment of the $200 transfer tax

Answer

NFA items such as machine guns and suppressors require ATF Form 4 approval and a $200 transfer tax even for estate transfers to heirs.

Question 4

When multiple heirs disagree about estate firearm values, what is the appraiser's appropriate role?

Accepted Answer

Provide an objective, documented fair market value opinion

Answer

An appraiser must remain independent and provide an objective fair market value opinion regardless of heir disputes or preferred outcomes.

Question 5

Which IRS form must accompany a qualified appraisal submitted with a tax return for noncash property exceeding $500 in value?

Accepted Answer

Form 8283

Answer

IRS Form 8283 is required when a qualified appraisal of noncash property exceeding $500 is submitted with a tax return.

CFA Practice Test

CFA Practice Test

CFA CFA Insurance Appraisal & Estate Valuation 2