Art Collections Pose Challenges To Estate Planning
For art lovers, deciding how to account for your collection in your estate plan can be both a rewarding and a difficult process. Many collectors want to pass on their collections to their children or grandchildren, but this isn’t always possible. If you have a significant art collection and are beginning the estate planning process, there are several concerns you will want to consider as you make your decision.
- Large Collections: If you have a large collection in terms of the number of pieces, passing it on to a small number of inheritors may not be possible. If your collection requires a lot of space, regular maintenance, or imposes a significant time constraints on the potential inheritor, passing on your collection may be more of a burden than it is a benefit. In this situation, you may want to pass on a smaller number of pieces and make other arrangements for the rest.
- Uninterested Heirs: While collecting art and enjoying it may be a passion of yours, that passion is not always shared by everyone else. If you are considering passing on your collection to someone, you should always make sure that person will enjoy the gift. If not, the estate and inheritance tax issues associated with the property may be a hindrance. In this situation, it may be best to direct that your estate sell the collection and instead pass on the cash gift.
If you need guidance on how to manage your art collection in your estate plan, please contact The Zimmer Law Firm for a consultation. Our dedicated team will be happy to answer your questions. We may be reached at 513.721.1513.