Inventory, contract and fixed price(package). When and how to proceed to the evaluation of works of art?

In case of succession. Recognizing the original character of the works of art, antiquity(antique) and collection, the French tax system envisages a particular system of evaluation of these properties(goods) within the framework of a succession. It is the article 764 of the general Code of the taxes that plans rules(rulers) to be followed to fix the value of works of art received in case of transmission by succession and which operates a distinction between meublants furniture and works of art strictly speaking. Meublants furniture, that is the ordinary furniture of a house, intended for its use (custom) and for its ornament (tapestries, beds, clocks(pendulums), tables and other chinas), is integrated(joined) into the succession according to three modes(fashions) of evaluation. The sale price by auction in two years as from the death is taken into account first of all, failing that, one use the value fixed in the inventory or, in the absence of inventory, a fixed price(package) collectively called ” failed in 5 % of furniture meublants “, calculated on the sum of the other properties(goods) making up(composing) the inheritance asset(active person). For works of art, will be also held(retained) as value of succession the price(prize) of the auction held in two years as from the death; in this hypothesis, one or several heirs will undergo no tax system appropriate(peculiar) to the resale, because the price(prize) of transmission will be equal to the auction(awarding). If there was no sale in two years as from the death, the tax authorities hold(retain) the estimated value fixed in the inventory, which was able to be established by an auctioneer or an expert. For lack of inventory, the reserved value will be the one mentioned in the insurance contract covering the works of art of the deceased. It is necessary to call back(to remind) that the insurers have to inform the tax authorities of the existence of the insurance contract against the flight(theft) or the fire concerning precious objects or oeuvres of art, within a fortnight as from their knowledge of the death of the subscriber. Correlatively, the heirs or the legatees have to announce to the administration of the possible existence of such a contract. In case there would be at the same time an inventory and an insurance contract covering these works of art, the reserved value will be the most important. In the absence of sale, of inventory or of insurance contract, the value held(retained) for works of art will be the estimated value fixed by the heirs. The jurisprudence of the Court of Cassation authorized the assimilation under certain conditions of works of art ” of decoration ” (being of use to the ornamentation of apartments) in meublants furniture. In this hypothesis, the heir can integrate(join) his oeuvres of art into the fixed price(package) of 5 % of furniture. Finally, it is essential to call back two important elements concerning the mode of evaluation of works of art in the successions. Indeed, the article 764 of the general Code of the taxes plans that the modes of evaluation described above are established subject to the evidence to the contrary. It means that the heirs or the tax authorities can try to minimize or to increase the value, if an objective evidence allows to contradict that proposed. For example, when the value of a work of art in the succession is fixed by the insurance contract, which took into account at the time of its subscription of the prosperous market of an artist, which since collapsed, if the heir brings the proof of this degradation, he can minimize the tax system. Other consequence, in case of payment in kind in payment, the tax authorities can completely use the in full discharge value proposed by the heirs.