Saturday, March 27, 2021
Many people may not consider what to do with their art collection when they are creating their estate plan. However, an art collection can "represent a significant portion of your estate." Therefore, it is critical that you include your art in your estate plan.
You may want to consider how much your art is worth as well as how it will be handled after your death.
In considering how much your collection is worth, you should have it appraised periodically by a professional. This is one of the most important steps. Although the frequency of appraisals will vary based on what type of art you collect, it is recommended that you get an appraisal at least every three years, if not annually.
Obtaining appraisals regularly will allow you to keep track of how your collection is growing in value and will all you to "anticipate tax consequences down the road."
There are three main options that you have in dealing with your art collection in your estate plan. You can sell it, bequest it to your loved ones, or donate it to a museum or charity.
The best option for one may not be the best option for another, so it is advisable that you seek out help from an estate planning advisor to help you decide which is the best strategy for you.
See David T. Riedel, The Art of Estate Planning, Adler, Pollock, & Sheehan P.C.: Insight in Estate Planning, March 24, 2021.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.