Forgotten Assets; Art Succession Planning
Art succession planning should be an iatrical part of the estate planning process. Fine art and collectible collections present their own unique opportunities for a collector to reduce current income tax, eliminate capital gains and estate taxation on art assets. Many high net worth individuals may be building large collections of art or collectibles as a passion, without a thorough recognition of their investment value. Just as Estate Planning demands special understanding of real estate, business assets and securities, fine art and collectible collections also present unique opportunities that may reduce current income tax, eliminate capital gains and estate taxation on art assets. Many collectors transfer art to their heirs by simply “passing it on”, or “handing it over”. They may not realize that this can create significant tax liabilities for their heirs. The problems may be compounded when they do not notify their legal and financial advisors of these transfers. When planning for art assets, collectors and their advisors need specialized advocates. These advocates can provide collection management, appraisal services and referrals to qualified advisors with a thorough understanding of relevant tax law that can assist a collector in reducing or eliminating current income tax liabilities, capital gains or estate taxation on works of art and collectibles. Contact me today to schedule a free phone consultation.
Cris Drugan, ISA, MIPAV-OS
