What Is a Statement of Value and When Is It Required?

A statement of value is a formal, signed declaration of what specific assets are worth on a particular date, filed with a court or tax authority during estate administration, divorce, guardianship, or certain tax filings. The IRS also uses “Statement of Value” as the official name of a separate, optional program that issues a government-backed valuation for art appraised at $50,000 or more. In either sense, the document fixes a dollar figure that controls how assets are taxed, divided, or reported, and the person signing it is on the hook for its accuracy.

When You Need One

You will encounter a statement of value in a handful of specific situations:

Probate and estate administration, where the executor must inventory and value everything the decedent owned.
Estate and gift tax returns filed with the IRS.
Divorce, where both spouses disclose the value of marital assets so the court can divide them.
Guardianship or conservatorship, where the appointed fiduciary files an inventory of the protected person’s assets.
Noncash charitable contributions above $5,000, which require a qualified appraisal and Form 8283.
The IRS’s optional Statement of Value program for art valued at $50,000 or more.

Each triggers different rules about who prepares the document, what has to be attached, and when it has to be filed. The common thread is that an incorrect number carries real consequences, whether that means tax penalties, a reopened divorce settlement, or personal liability for a fiduciary.

The IRS Statement of Value for Art

The IRS Art Appraisal Services office will issue a formal Statement of Value for an individual art item appraised at $50,000 or more, whether the piece is being donated to charity, passing through an estate, or being given as a lifetime gift.¹ “Art” is defined broadly and includes paintings, sculpture, prints, drawings, ceramics, antique furniture, decorative arts, textiles, carpets, silver, rare manuscripts, and historical memorabilia.

Requesting a Statement of Value is optional, but the practical benefit is that the IRS is pre-approving the value before you file. That cuts off most of the room for a later audit dispute. For a charitable contribution, the request must go in before you file the return that first reports the donation, and it must include a qualified appraisal, a completed Section B of Form 8283, and a user fee.¹

The current user fee is $8,400 for one to three items and $800 for each additional item.² If the IRS declines to issue a Statement of Value, the fee is refunded; if you withdraw the request, it is not.¹

Charitable Contributions Over $5,000

If you donate property other than cash and claim a deduction above $5,000 per item or group of similar items, the IRS requires a qualified appraisal from a qualified appraiser plus a completed Section B of Form 8283 attached to your return.³ The appraisal must be performed no earlier than 60 days before the donation and must be in hand before your return’s due date.

The rules tighten as the dollar amount climbs. For donated art at $20,000 or more, a complete copy of the signed appraisal must be attached to the return. For any single item or group with a claimed deduction above $500,000, the appraisal must accompany the return.³

Don’t confuse these appraisal requirements with the IRS Statement of Value program. The $5,000 threshold triggers mandatory appraisal and Form 8283 reporting. The Statement of Value is a separate optional process that applies only to art at $50,000 or more.

Estate, Divorce, and Guardianship Filings

In probate, the executor’s first job is to account for everything the decedent owned and assign each asset a dollar value. The probate court needs the inventory to oversee distribution; the IRS needs it to determine whether estate tax is owed. Under federal law, estate property is valued at fair market value as of the date of death, though the executor may elect an alternate valuation date six months after death if asset values have dropped in that window.⁴ Mistakes here shortchange beneficiaries, miscalculate tax, and expose the executor personally.

Divorce cases require both spouses to disclose the value of marital assets so the court can divide them fairly. Jurisdictions use different names (financial declaration, statement of net worth), but the function is the same. Failing to disclose assets or submitting inflated or deflated numbers can bring sanctions, an unfavorable settlement, or reopening of the case.

Guardians and conservators face a parallel obligation. After appointment, the fiduciary files an inventory listing every asset and its fair market value, commonly within 60 to 90 days of appointment depending on the state. Periodic accountings follow at intervals set by the court.

How Different Assets Are Valued

The method depends on what you’re valuing. Courts and the IRS expect documented, defensible approaches.

Real Estate

Real property is typically appraised using the comparable sales method, which estimates fair market value by comparing the property to similar properties recently sold nearby, with adjustments for size, condition, location, and sale date.⁵ A licensed appraiser’s written report is the standard deliverable.

Publicly Traded Securities

Stocks and bonds traded on an exchange are valued at the mean between the highest and lowest quoted selling prices on the valuation date. If the valuation date falls on a day the markets were closed, you take a weighted average of the means from the nearest trading days before and after, weighted inversely by the number of days separating each from the valuation date.⁶

Personal Property and Collectibles

Fair market value is the price a willing buyer would pay a willing seller, with neither under pressure and both having reasonable knowledge of the facts.⁵ Vehicles can be valued using established pricing guides. Jewelry, antiques, and specialized collections need a qualified appraiser with expertise in the specific category. For anything heading to the IRS, use an appraiser who meets the qualification standards in the Form 8283 instructions.

Life Insurance

For estate tax purposes, a life insurance policy’s value is reported on IRS Form 712, which the insurance company completes at the executor’s request.⁷ Each policy in effect at the time of death needs its own Form 712, capturing face amount, accumulated dividends, outstanding loans, and actual proceeds paid.

Penalties for Getting the Number Wrong

On tax filings, misstating value carries accuracy-related penalties. If the value you claim is 150% or more of the correct amount, the IRS treats it as a substantial valuation misstatement and imposes a penalty equal to 20% of the resulting tax underpayment. If the claimed value reaches 200% or more of the correct amount, it becomes a gross valuation misstatement and the penalty doubles to 40%.⁸

The substantial misstatement penalty applies only when the attributable underpayment exceeds $5,000, or $10,000 for most corporations. There is no similar floor for gross misstatements. These rules reach income tax deductions for charitable contributions, estate and gift tax valuations, and transfer pricing between related parties. If you donate a painting and claim it’s worth $100,000 but the IRS determines the correct value was $40,000, your claim is 250% of the correct amount, which crosses the gross misstatement threshold and adds 40% of the extra tax you owed as a penalty. This is the dispute the IRS Statement of Value program exists to prevent.

Filing Mechanics

Identify every asset within the scope of the filing with enough detail to avoid ambiguity: account numbers for financial accounts, legal descriptions or addresses for real property, policy numbers for insurance. Gather ownership documentation (deeds, titles, brokerage statements) because the court or agency will verify that you actually control what you’re valuing.

The valuation date is dictated by the legal event. For estate tax, it’s the date of death or the alternate date six months later.⁴ For divorce, local rules decide, and the date may be separation, filing, or trial. Getting the date wrong makes every number built on it wrong.

Valuation documents filed with courts or federal agencies are typically signed under penalty of perjury. Federal law lets an unsworn written declaration signed under penalty of perjury carry the same weight as a notarized affidavit.⁹ Some state courts require notarization on top of that, so check local rules.

If you find additional assets after the initial filing, most jurisdictions allow a supplemental inventory or amended valuation. The supplement carries the same force as the original, so the same accuracy standards apply. Keep certified copies and time-stamped proof of every submission.

1
Internal Revenue Service. Revenue Procedure 96-15 – Requesting a Statement of Value for Art
2
Internal Revenue Service. Art Appraisal Services
3
Internal Revenue Service. Instructions for Form 8283 – Noncash Charitable Contributions
4
GovInfo. 26 USC 2032 – Alternate Valuation
5
Internal Revenue Service. Publication 561 – Determining the Value of Donated Property
6
eCFR. 26 CFR 20.2031-2 – Valuation of Stocks and Bonds
7
Internal Revenue Service. About Form 712 – Life Insurance Statement
8
Office of the Law Revision Counsel. 26 USC 6662 – Imposition of Accuracy-Related Penalty on Underpayments
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Office of the Law Revision Counsel. 28 USC 1746 – Unsworn Declarations Under Penalty of Perjury