Many individuals, from the everyday collector to the wealthy investor, may overlook the method for transferring their collections upon their passing. One popular item that people collect is art. Art can appreciate in value, and transferring the art could potentially be problematic or contentious without a proper estate plan. In Florida, some thoughtful art collectors have chosen to allocate this asset in advance with a solid plan.
The collector is typically the person who likes to acquire, and not necessarily dispose of, art. Therefore, upon the death of the collector, the accumulated collections may be quite large. Depending on the value of the collection, if the collector has not included the art in the planning process, the collection may be subject to estate taxes. A less valuable collection can still benefit from some forethought as well.
The collector’s prizes can be left to individuals, to charities or left in trust upon the death of the collector. If a person is having a hard time choosing which family member to give the art to, there is the option to keep the art in the name of a corporate entity. Another important consideration in the planning process is to ensure that all the pieces have complete information available, including a bill of sale, certificate of authenticity, insurance records and any other relevant information.
Gathering the art, documenting the collection and storing the documentation safely can all be part of a thorough floridaelderlaw.net/Estate-Planning.shtml”>estate plan that can allow an individual to protect the asset and transfer it without issue. Some people require help when undertaking such a task, especially for large or very valuable collections. In Florida, many people choose to hire an attorney when creating an estate plan, to benefit from his or her extensive legal knowledge.
Source: Forbes, “Estate Planning And Affluent Art Collectors“, Russ Alan Prince, Jan. 8, 2018