Tuesday, June 24, 2014
It is a common practice for the wealthy to invest in art and collectables. However, this practice can cause headaches for their family members after the owner of rare valuables passes away, both in trying to sell it and with the IRS. Over the past few years pieces have not been selling as well as expected or not selling at all. Often the amount they are appraised for, and thus the amount the IRS views them as valuing, is not close to the amount that they garner at auction. For example, a stamp collection widely regarded as extremely valuable was appraised to be worth up to $20 million, but sold for $9.5 million after four years.
See, From Stradivarius to Rare Stamps, Collectible Assets Can Leave Heirs in IRS Lurch, Trust Advisor, June 23, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.