Are You a Collector? Protect the Investments of Your Hobby
You can't take your collections with you.
Bank accounts, investments, and real estate aren’t the only assets you need to consider when you pass away. You may have a rare collection that needs to be considered when creating a family wealth plan. In these circumstances, it is best to specifically state your desires instead of creating ambiguity.
Some collections are more valuable as a whole than when they are divided up. Because of this, making the collection a specific gift in your family wealth plan can maximize its value for your family members. Getting your collection appraised periodically can keep you notified of its value and can ensure that your attorney is aware of any obstacles in factoring in gift and estate taxes.
Notifying your family of your collection may also keep the family peace in considering your wealth plan. A well-drafted will that specifically distributes gifts can erase ambiguity and reduce the chances of a contested probate process. If you fail to specifically plan for it, it will become part of your gross estate and subject it to division or auction if expenses need to be created.
This means you may not have a say about where it goes.
If you have a rare collection, you may view it as part of your legacy. Because of this, there are several tools you could use to protect it once you pass away. You may also be able to distribute your collection as a contingent gift or set up a trust to ensure that the collection does not become separated.
Your rare collections help provide insight on what you value and who you are as a person. Because of this, ensuring they transfer to someone who can appreciate this may be an important factor in determining your legacy. By planning for your collection, you can help bring clarity and protection for your family wealth plan.