Why Firearms Must Be Valued in Estates

Drew McDermott
Aug 27
3 min read

Updated: Nov 8

The Link Between Certified Appraisals and IRS Form 706

When a loved one passes, families and executors are often surprised at the level of detail required in estate settlement. For larger estates that meet federal thresholds, the IRS requires the filing of Form 706 (United States Estate and Generation-Skipping Transfer Tax Return). This form is not just about real estate or bank accounts. It demands a complete accounting of all assets, including tangible personal property such as jewelry, artwork, vehicles, and firearms.

**IRS Form 706 requires estates to report the fair market value of all assets, including firearms.**

What the IRS Expects

Form 706 requires that every asset be reported at fair market value (FMV) as of the date of death. For firearms, this is not as simple as looking at a receipt or checking a gun auction website. Market value depends on several factors:

Make, model, and production year
Rarity and collector demand
Condition grading and originality
Federal and state regulations that affect transferability

Because of these variables, the IRS often expects a formal, defensible appraisal, especially for unique or high value firearms.

Why Firearms Add Complexity

Firearms stand apart from other categories of personal property for two reasons: they are regulated assets and they are highly variable in value.

From a regulatory standpoint, not every firearm in an estate can simply be passed from one person to another. Federal law controls transfers across state lines, while Missouri law dictates what an unlicensed heir can or cannot do. If an executor mishandles a transfer, even unintentionally, the estate could be exposed to liability.

From a valuation standpoint, firearms are closer to fine art than to furniture. Two rifles that look nearly identical to a family member may differ by thousands of dollars in market value depending on serial number range, factory configuration, or proof marks. Estate attorneys and fiduciaries often lack the specialized knowledge to identify these subtleties, which is why professional appraisal becomes critical.

The Role of Certified Firearms Appraisals

Not all appraisals are created equal. The IRS and probate courts prefer valuations that meet USPAP (Uniform Standards of Professional Appraisal Practice). At MDRF Enterprises, we provide Certified Firearms Appraisals backed by training through the American Gunsmithing Institute and aligned with USPAP standards. Our reports are designed to be:

Legally defensible if reviewed by the IRS or probate court
Clear and detailed, documenting make, model, serial number, and grading
Compliant with professional appraisal standards expected by attorneys and fiduciaries

Risks of Skipping a Proper Firearm Appraisal

The risks of ignoring firearms or “guessing” their value go beyond tax issues.

IRS scrutiny: Estates that underreport value may trigger questions, audits, or penalties. Firearms that are undervalued because of collector demand are especially likely to stand out.
Overpayment of estate tax: Inflating value without proper justification can lead to higher tax liability than the estate should legally pay.
Family disputes: Firearms often carry sentimental weight. Without a clear appraisal, disagreements over “who gets what” can escalate into costly conflict.
Compliance issues: Executors who do not understand ATF and state rules risk making unlawful transfers. A certified appraisal not only sets value but also ensures that the firearm is properly identified, which is a first step in handling it legally.
Court challenges: If an estate is contested, the absence of a certified appraisal weakens the executor’s position. A USPAP-compliant report provides an authoritative document that can withstand legal review.

Helping Professionals Protect Their Clients

For attorneys, executors, trust officers, and fiduciaries, firearms in an estate are not just another line item. They are regulated property that require special attention. MDRF Enterprises provides certified, professional appraisals that meet IRS and probate expectations.

Final Word

Estate settlement is complicated enough. When firearms are involved, the smartest approach is to ensure they are properly documented and fairly valued. For estates filing IRS Form 706, a certified appraisal is not only best practice but also a way to avoid costly mistakes.

MDRF Enterprises offers Certified Firearms Appraisals across the Greater Saint Louis area, supporting families, executors, and estate professionals with licensed, discreet, and compliant service.