Some Tennessee residents are passionate about collecting art. These collections are often highly personal in nature, but can also be very valuable. How an art collection is handled within estate planning depends in large part on how an individual intends those assets are to be used.
For example, many collectors intend to pass down their art collection to their children or grandchildren. This approach assumes that the heirs would want to receive that form of inheritance. It also assumes that the heirs will have the interest and means to assume ownership of a collection and to maintain it as needed. Another option is to donate a collection to a museum or other organization, or to lend the collection for a period of time. Those arrangements must be carefully structured to protect all parties and can become very complex.
One way to structure a solid estate plan that will address an art collection is to hire a specialized advisor to guide the process. This professional can help a collector establish a value for his or her collection, one that meets his or her particular set of needs. An advisor can also guide a collector through various estate planning options, pointing out the pros and cons of each potential choice.
Handling unusual assets such as an art collection can bring about a need for additional advice. Fortunately, there are professionals who can help Tennessee residents choose the best course of action. By taking that advice, individuals can pass on a treasured collection without passing on heavy tax or maintenance burdens.
Source: The New York Times, "Estate Planning Can Get Tricky When Art Is Concerned", Conrad De Aenlle, Oct. 1, 2015