Estate Planning Art and Collectible Assets

When an estate becomes effective at the end of the owner’s life, antiques, fine art, and rare collectible assets can be sold at auction for a market price. Distribution of proceeds from art and collectible assets according to an estate plan, a will, or trust document, specifies the terms and conditions in which final beneficiaries will receive an inheritance. Future heirs of estate held artwork, antiques or rare collectibles may request liquidation depending on the directives of an estate.

The inclusion of valuable antique, fine art, and rate collectible assets in an estate, contributes to the net worth of a trust. Here are the top ‘8’ estate planning tips for transfer of antiques, art, and collectibles to an estate trust:

1. Appraisal certification of authenticity is key valuation of high-ticket antiques, artworks, or other rare collectible items.
2. Records such as bill of sale for auction or exchange, appraisal records, insurance policies, and record of damages, repairs, or refurbishment of items.
3. Written will, estate, or trust documentation outlining assets and planned distribution of specified items to designated heirs.
4. Market valuation of each item, including estimated taxes and liquidation costs affecting proportional equality of individual inheritors.
5. Living trust exclusions and tax-exemption for transfer of annual income or lifetime gifts of artwork or collectible given to heirs prior to death.
6. Directives for storage and shipping of tangible antique, art, and collectible assets, particularly where inheriting heirs reside elsewhere.
7. Philanthropic contributions accorded tax-deduction from estate gifting of valuable collectibles to designated not-for-profit charities.
8. Notification of a CPA, estate planning attorney, or investment advisor, of the decision to transfer artworks or collectibles to an estate trust, with directives for management and distribution of those assets among heirs should such dispute arise.