ISA Private Client Services

I am just back from Dallas, TX after taking the two day ISA  Appraising in the World of High-Net-Worth Individuals program. The program was sold out, and in addition to the over 30 onsite ISA members, we had an additional 36 live stream the important event. I have to admit, I typically have a hard time staying interested and attentive for two day programs and presentations. This program kept my attention with each presentation during the full two day program.

We had a small hiccup in the program when the first presenter, collector and creator of J.P. Bryan of The Bryan Museum, Galveston, Texas, was not able to attend due to storms and severe weather.  Technology both assisted and hurt us, as Mr Bryan was able to Skype into the presentation and was broadcast on the main screen and to the streaming viewers. It worked well until we had some connectivity issues. The presentation was great, but we lost some continuity. We also had Mr Bryan's museum director onsite for the presentation.

Mr Bryan's presentation was followed by a dealer talk and then the art curator for Charles Schwab Company followed by a discussion of museums collections and curation. Next up was legal issues and appraisers, with an interesting discussion on Kovel agreements appraisers can, if executed properly protect privileged information when working with an attorney for a client, as well as protecting documents and analysis in appraisal reports.  The final day one presentation was an informative discussion about logistics, art storage and conservation.

In my opinion, for day two the intensity and interest levels picked up further,  starting with presentations on working with family offices and community foundations. The first gave insight into the operations of the family office, the later, along with donor advised funds was very good, and may open additional avenues for appraisal practices referrals. We then went into more legal issues and information on appraising with expected content for working with attorneys and HNWIs.  The presentation gave us a 30+ page guide called Current Strategies and Advise for HNWIs in Wealth and Estate Planning. Some of the content and information was of course already known to many, others topics were clarifying, while other sections were newly informative and interesting.

We then heard from the  CEO of Worthington National Bank, Fort Worth, who discussed financing fine art, and the final presentation was from an AIG Director, Art Collection Management, about working with high valued art and HNWIs.  Given the private client group of AIG only insures collection above $5 million, it was very interesting.

I came away with a few ideas, a stronger knowledge base and several new concepts for promoting my practice, such as a better understanding of community foundations, as well as gaining client/attorney privilege through Kovel agreements, and the structures for family offices. Some of these concepts and ideas might not be useful for a typical appraisal, but when dealing with HNWIs and large and/or complex valuations, the understanding and confidence levels were greatly increased after attending this program.

I also came away somewhat disappointed where some presenters said they did not use appraisers, some using receipts, or using a blanket insurance policy and would only look to an appraisal in the event of a loss. That said, it gives appraisers an opportunity to turn some of these folks from being reactive with their appraisal needs to being proactive. Individual appraisers, appraisal organizations such as ISA, AAA and ASA and the Appraisal Foundation all need to work together to promote not only qualified appraisers and appraisals, but also the need for professional prepared appraisals from a risk management perspective.

I now plan on applying to the new ISA Private Client Services, with the current program and additional future programs will allow me to promote my appraisal practice and specific training to more HNWIs, as well as associated professionals who service them, such as private bankers, wealth managers, estate planners/attorneys and private bankers. See the new logo above.

As far as I know, ISA is the only personal property organization offering this type of detailed training and enhanced member affiliation status for working specifically with HNWIs and their service providers. It is a great opportunity for expanding services, client representation/advisory and income for the appraisal practice.