A checklist of things to think about if you collect art
​and  
want to be able to dispose of it in the best way possible - whatever that may be.

Artists are not the only people whose estates can run into problems after the death. 
It also happens with the Estates of Art Collectors
Art Collectors need good advice if their collection is to be disposed of in an appropriate way after their death.
  • Some people collect because art because they genuinely appreciate it
  • Some people collect art as part of an investment strategy for their wealth
  • Some people do both

It's very much easier to generate questions about what an art collector needs to think about with respect to the eventual disposal of his or her art collection - than it is to come up with the answers!  

However if you don't know some of the questions to ask it's certain you'll never come up with the answers.

Here are some things to think about if you collect art and want to be able to dispose of it in the best way possible - whatever that may be.
Picture
William Hogarth - The Battle of the Pictures
Return to THE ART LEGACY
Handbook of Practical Planning for Art Collectors and Their Advisors
by Ramsay H. Slugg

Paperback: 144 pages
Publisher: American Bar Association
Publication date: November 7, 2015
This book is intended to be accessible to the American art collector as well as those who provide professional advice to art collectors.

It addresses three key issues relating to the ownership of art
  • planning for the ultimate disposition of the art - including charitable solutions
  • how to represent the wealth represented by the art in any estate and financial planning, and
  • practical considerations for collectors as they collect and plan for the art's eventual disposition.

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Check List for Estate Planning for Art Collectors
​

THE VALUE OF YOUR ART COLLECTION
  • The value of your art collection may well exceed your estimate
  • Who is best placed to provide an accurate valuation of your art collection for probate?
  • Does the death of an artist in your collection affect its value?
  • Is your art more valuable as a collection or as the sum of the valuations for individual pieces?​
REFERENCE: ​Estate Valuation
ADVERT
DISPOSAL OF YOUR ART COLLECTION
  • Will your Executors know the best way to dispose of your art?
  • Should you be considering a charitable donation?
  • What happens to your art collection if you donate it to a museum?
REFERENCE:
​Estate Planning - Disposal - for Art Collectors REFERENCE: ​​Keeping the Collection Intact 
  • Withers Worldwide - Cultural assets & art
    Have you appropriately safeguarded your art and cultural assets?Do you have an appropriate succession plan in place to avoid your collection being divided upon your death?Will your art collection be protected against divorce proceedings?

DONATING ART - AND TAX DEDUCTIONS

A number of art galleries and museums have benefited from the donation of art over the years - in a donor's life time and on their death

There are however a number of considerations in relation to:
  • purpose
  • valuation
  • tax status of a donation
A Tax-deductible Donation (USA)

The rules in the USA to realise a charitable income tax deduction are as follows
  1. You have to donate to a public charity formed within the United States
  2. The artwork must have been owned by you for more than a year
  3. The donation must relate to the charity's charter and help it continue in perpetuity
  4. The charity must agree to keep the artwork for at least three years
  5. the value of the donation must be assessed by a fully qualified appraiser
  6. You must really be an art collector (i.e. you can't be the artist or an art dealer)
​
Donations of artwork to a public charity, such as a museum or university with public charity status, can entitle you to deduct the artwork's full fair market value. 

If you donate art to a private foundation, however, your deduction will be limited to your cost.
REFERENCE: ​Donating Art
The Internal Revenue Service (IRS) rules contain detailed requirements about the qualifications an appraiser must possess and the contents of an appraisal. Doeren
THE THORNY ISSUE OF TAX!
  • Have matters related to taxation - both your tax and the tax affairs of your beneficiaries - been considered when making decisions about the approach to disposal of the estate?
  • Did you know that in the USA the IRS also has a service which reviews and evaluates appraisals of artwork in conjunction with federal income, gift, and estate tax returns"
  • What are the tax myths about art collections?
  • How can you make tax efficient decisions about your art collection?
  • Have you considered your financial or tax adviser? Do they have adequate expertise in this field of interest?
  • SEE Art and Inheritance Tax​
REFERENCE: Tax Considerations
The Art Collector's Handbook:
A Guide to Collection Management and Care
by Mary Rozell

Series: Handbooks in International Art Business
Hardcover: 232 pages
Publisher: Lund Humphries;
Publication date: New edition March 1, 2014
Provides the first comprehensive overview of art collection management, for collectors and professionals. There are There are chapters on how to acquire art, cataloguing the collection, approaches to valuation, insurance, shipping and storage, conservation and collection care, sharing collections, and parting with the collection.
  • Includes coverage for the first time of legal issues for non-legal professionals 
  • An essential resource for art collectors at all levels, managers of art collections, art advisers, appraisers, artists, and auction houses and their clients

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