A serious art collector may have hundreds of thousands or even millions of dollars in their collection. It will contain many one-of-a-kind pieces that simply can’t be found anywhere else.
Even if you just collected art for the love of art itself, and not as an investment, you have to consider the sheer value of this collection and the complexities it can create as part of an estate plan.
Key tips for art collections and estate plans
While every estate plan is unique, you may want to consider the following tips when working on yours:
- Get a valuation done. Seek a professional opinion. Forget how much you have invested or what you’d like to sell it for. Find out what the art is really worth so you can divide it properly.
- Talk to your heirs. You especially want to find out about the sentimental value of any of the art. This isn’t going to show up when you have a valuation carried out, but it could be even more important than the financial value to a specific heir.
- Find out what they may not want. There’s a chance that none of your heirs will want some of the art. To ensure that it’s not sold off at a massive discount, it may be most productive to sell it yourself and then include the proceeds in the estate plan.
- Consider all of your options. You don’t have to leave a collection directly to anyone. For instance, did you know that you can create an LLC, transfer the collection to the LLC, and then leave it to multiple people so that they are all co-owners? Don’t be afraid to think outside of the box.
As you get started with this process, it’s important to know what legal options you have and what next steps are required.