Many wealthy individuals have comprehensive estate plans in place to protect their bonds, stocks and private equity, and to ensure that these assets are properly passed down to heirs. However, many of them leave out their art collection.
A UBS study called ‘For the Love of Art’ found that up to 87% of art collectors intend to pass on their art collection to their children but nearly 60% have not told their heirs how to appraise, manage or sell it. The study involved more than 360 art collectors, with at least $1 million in investable assets.
Unlike many other types of collectibles such as jewelry or coins, many children of art collectors do intend to keep the art their parents passed down, and yet only 41% of those art collectors have had the art appraised. This is the vital step in valuing the collection appropriately and getting it properly insured. Two out of three collectors never sold a work of art because many of them buy for passion rather than profit.
However, putting in place an estate plan for your art is an extremely important component of protecting you and your loved ones in the future. Articulating this plan now can make it easier for your loved ones to determine what they intend to do with the art and to enable them the broadest range of options. Use a Pasadena estate planning attorney for help.
