People who collect art, action figures, stamps, coins or other valuable items know that such pursuits take a lot of time, energy and money. As such, it is important to protect the investment and care that goes into these collections by addressing them specifically in an estate plan.
There are a few ways that you might choose to handle personal collections, which we examine below.
- Pass it down to loved ones. Passing it on to a child or partner can be a good option if that person helped you build the collection, or if he or she has the same appreciation for the items that you have.
- Donate it to a charitable organization. This can be a wise decision for people with philanthropic goals or collections that have historical, artistic or cultural importance. Sharing with a community that would appreciate the collection can give a collector a sense of pride and contribution.
- Place it in a trust. Setting up a trust for collections and other property can help preserve the property for generations to come. There can also be tax and privacy benefits to consider.
As this Forbes article notes, it is also crucial to secure records of ownership and authenticity to assuage any concerns regarding the origin of the items. Including these files with estate planning documents can prove to be of enormous benefit to those who receive the collection in the future.
Before you make any decisions, though, understand that while the options may seem clear, making plans for transferring collections can be very complicated. There are numerous implications and processes to consider, so it is recommended that collectors consult an estate planning attorney to assess the options.