At first glance, non-fungible tokens, or NFTs, would seem to have little place in the world of fine art. After all, they’ve only been around for nine years, and during that time, they’ve developed a reputation as an abstract form of digital currency only fully understood by tech-savvy early adopters. The mere mention of NFTs raises a bit of skepticism in some circles, partly because not many of us comprehend the technology behind them.
Ask someone to explain NFTs and blockchain technology in layman’s terms, and you’re likely to hear plenty of stammering and double talk, but our newest episode of Absolute Trust Talk will provide a welcome reprieve from that. Kirsten Howe’s guest is Claudia Worthington Hess, who brings an unusual combination of 40 years of experience in the art market and a thorough knowledge of NFTs to the discussion.
Her new book, NFTs: A Handbook for Art Lovers, results from 17 months of research on this often-misunderstood topic.
In this episode, she’ll explain why NFTs and fine art — two worlds that seem to have nothing in common — are a natural fit for each other and why NFTs are here to stay, becoming more prevalent in the future.
0:00 Introduction
1:48 Claudia works with museums and clients across the United States and Candida on insurance, donation, and estate appraisals.
3:38 Wondering what goes into appraising a piece of art? It’s a mix of sciences and connoisseurship mixed with being an art detective and psychologist.
4:33 In the art appraisal world, there are three subdivisions – fine art, decorative art, and multimedia art.
5:46 Life events are one of the main reasons why people get their artwork appraised in the first place, like an insurance policy request.
7:33 Here’s why an appraisal may yield substantially different valuations, depending on its objective.
9:04 When dealing with the IRS or evaluating someone’s estate, that’s when you focus on fair market value. Here’s what you need to know.
10:37 Art appraisal may seem subjective, but the USEPAP or Uniform Standards of Professional Appraisal Practice helps professionals like Claudia find comps.
11:35 The most common frustration voiced by those who attempt to determine the value of their artwork without the proper experience is that the values are all over the place.
13:35 The field of art appraisal changes continually. Claudia stays up to date by attending events, networking, and doing a lot of homework to maintain her certifications.
14:27 Here are some of the primary considerations Claudia makes when determining the value of a piece of art.
15:43 While we may be entertained by the story behind a piece of art, what someone is willing to pay for a piece is what really determines its ultimate value.
16:59 Young people seem to value experiences over objects these days, but here’s why artwork will always have appeal.
19:26 For art lovers, NFTs feature these two main categories. Claudia gets into greater detail in her new book, NFTs: A Handbook for Art Lovers, which can be found on her website, www.HessArtAdvisories.com/Book.
21:02 A blockchain is a digital ledger system that keeps adding blocks of information. It never goes backward. It’s always being added on to cryptographically.
22:40 These surprising statistics will underscore how mainstream NFTs are in the art world now – digital art transactions ranged from 78 million per month in April 2020 to an average of 24.7 million in October 2022.
24:28 Future royalties are a main benefit of NFTs, making them especially effective in proving ownership and confirming agreements between artists and galleries.
27:34 In keeping with the digital world, Claudia’s book is currently a digital download, which she is working to turn into a 3D NFT.
28:34 Q&A: Is it more common for people to think their art is worth more than it really is, or are they typically more surprised that they own an expensive piece?
29:12 Q&A: What is the biggest surprise Claudia has seen in her practice?
30:38 Q&A: Where do you show for NFTs? Can they be displayed in galleries?
Do you need help with your estate planning or trust administration now? We can help. Together our Absolute Trust Counsel team will take a look at your situation and your specific needs and develop a strategic plan that will protect you and your loved ones, regardless of what may come. Here’s a link to schedule your free discovery today https://absolutetrustcounsel.com/scheduling/
We’re pleased to provide you with a library of e-books to address common estate planning questions and concerns in practical, easy-to-understand language. https://absolutetrustcounsel.com/guidebooks/
Kirsten Howe and Madison Gunn Can Be Reached at 925-943-2740 or Info@AbsoluteTrustCounsel.com.
https://www.facebook.com/AbsoluteTrustCounsel
Tweets by KirstenHowe
https://www.linkedin.com/in/kirstenhowe/
https://www.instagram.com/absolutetrustcounsel
