Estate Planning and Collections

by Anna Glendenning | More from this Blogger

19 Jul 2006 10:42 AM

As collectors we want to pass along our joy for those things we gathered during our lives. Our collections of specific items, antiques, books, dolls as well as any fine art we gather may represent our own lifelong passion. What we collect or acquire during our lives demonstrate individuality and personality. It isn't very common to see a collector's heirs carry on with the same understanding, dedication or appreciation of a collection passed-down. It's important that we think about these valuables in advance and the eventual fate of our collections. Leaving things in the hands of attorneys and executors often leads to messes and confusion There are many important issues to consider in order to plan for the future of an estate if you are a collector of anything of sentimental or of any value. The most important questions to consider when planning the future or your collections are:

• Will any one in the family want the collection?
• Is it the type of collection that should be placed in a museum?
• Will the collection need to be sold?
• Is keeping the whole collection together a practical choice?

You may or may not have insured your collections of books, dolls, art or other collectibles over the years, but when you decide to plan your estate and what will happen with everything you have worked hard to collect you may want to consider the importance of obtaining a proper appraisal.

Appraisals for collectible items and fine art generally fall into the following categories:

• Routine Insurance Appraisals Insurance appraisals document replacement cost. The retail price that would have to be paid if the owner were to purchase a comparable work
• Estate Tax Appraisals document fair market value. The price that would be paid between a willing buyer and a willing seller. Estate tax appraisals are usually very in-depth and include a detailed schedule listing all the appraised works and comparable sales for the more valuable items. Consumers want to find experts experienced in dealing with the IRS on art, collections and jewelry related estates.
• Income Tax Appraisals Similar to estate appraisals, an income tax appraisal documents the fair market value. These are often used to determine the donor's tax deduction when something is given to a non-profit organization.

Related Article:

• Insurance Appraisals
• Top 5 Reasons to Never Buy Credit Protection Insurance.

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Learn more about Anna Glendenning

Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork.

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Bonnie Sayers (1298) 22 Jul 2006 03:56 PM

OT - Do you have any experience with Special Needs Trusts? I need to do it for my kids and hear it costs a lot of money.

Bonnie

Anna Glendenning (4234) 23 Jul 2006 09:52 AM

My best advice is to contact a larger insurance brokerage where multi-lines and a variety of insurance products are offered. If you have your complete insurance needs reviewed by a an agency or brokerage that offers multi companies and can insure any needs you might have then typically they have the intention and expertise to provide what you might need. Also, they may work with attorneys who can handle legal issues. Since the insurance needs you will have are very personal to your situation, you want to go to a more complete insurance service provider. An independent firm will be able to review everything about your situation and help you set things up. If you move all of your personal insurance to them, then they know where any missing things are, and they can be sure that things are set up correctly for a trust. When they have all your insurance business then, they can take care of you--and earn commission from all of the insurance you need. That's just the way I feel about it when your insurance needs start to include more then auto and home...when umbrellas or trust start to be important I think it's best to put things together with one place that can meet all the needs. I have worked both with captive insurance companies (representing that Insurance Company) and non-captive, independent agencies and brokers I just feel when insurance become more important and more then the basics that consumers have better options with a non-captive agent or broker. They also tend to have larger staff and people trained in different areas of insurance. Your needs are handled by a team rather then one agent. I am getting ready to write a blog about "shopping an insurance portfolio" because we are going to make some huge changes in our insurance including establishing a trust.