Friday, October 25, 2019
Article on Art Crimes and Misdemeanors: Managing Risk in Estate Administration and in Appraisals of Stigmatized Art
Sarah Moore Johnson & Cindy Charleston-Rosenberg recently published an Article entitled, Art Crimes and Misdemeanors: Managing Risk in Estate Administration and in Appraisals of Stigmatized Art, Wealth Strategies Journal, October 3, 2019. Provided below is an introduction to the Article.
Art collectors and their estates can experience disastrous outcomes when art is acquired without proper due diligence and when art is incorrectly valued. At the root of these problems are various types of stigmatized art that commonly lurk in estate collections, including forgeries, stolen art, mistakenly attributed or unidentified works, and art that is illegal to own or trade. Failure to properly identify and value stigmatized works can result in avoidable excess tax liability, unequal distributions to heirs, overpayment of insurance premiums, family disputes, and increased vulnerability to IRS challenge.
This article provides guidance to appraisers, trust and estate attorneys, and wealth managers on how to identify stigmatized art that may complicate estate administration. It discusses the associated legal and monetary risks can be managed through advanced strategies and diligence in the selection of relevantly qualified experts.