CFA Insurance Appraisal & Estate Valuation Flashcards
6 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFA Insurance Appraisal & Estate Valuation flashcards as text
When firearms are included in a decedent's estate, what value standard is required for federal estate tax purposes?
Answer: Fair market value as of the date of death
The IRS requires estate assets, including firearms, to be appraised at fair market value as of the date of the owner's death.
Who typically engages a firearms appraiser when guns are part of a probate estate?
Answer: The estate executor or administrator
The estate executor or administrator holds fiduciary responsibility for inventorying and valuing estate assets and is the party who engages the appraiser.
What additional legal step must an estate executor complete before transferring NFA-regulated items to heirs?
Answer: ATF Form 4 approval and payment of the $200 transfer tax
NFA items such as machine guns and suppressors require ATF Form 4 approval and a $200 transfer tax even for estate transfers to heirs.
When multiple heirs disagree about estate firearm values, what is the appraiser's appropriate role?
Answer: Provide an objective, documented fair market value opinion
An appraiser must remain independent and provide an objective fair market value opinion regardless of heir disputes or preferred outcomes.
Which IRS form must accompany a qualified appraisal submitted with a tax return for noncash property exceeding $500 in value?
Answer: Form 8283
IRS Form 8283 is required when a qualified appraisal of noncash property exceeding $500 is submitted with a tax return.
What is a 'qualified appraisal' as defined by IRS standards for estate and charitable donation purposes?
Answer: An appraisal meeting IRS criteria conducted by a qualified appraiser within the required timeframe
A qualified appraisal must be conducted by a qualified appraiser, satisfy specific IRS content requirements, and be completed within the required timeframe relative to the tax return due date.