Art and Collectibles in your Estate

I have collected art throughout my life; some of it is quite valuable. Is it included in my estate for tax purposes?

Just like any other asset, art work or other collectibles are included in valuing your estate for estate tax purposes. The value that is included is the fair market value calculated as of your date of death. Frequently we find that a client’s beneficiaries do not share the client’s passion for the collection and may have little or no appreciation of its value. In that case other plans should be formulated for the disposition of the collection upon the death of the collector. If a charitable contribution is contemplated, there are some complex tax rules for valuing the contribution. You should advise your attorney and financial advisors regarding your collection and seek their input on the best way to handle it from an estate and income tax perspective.

– Lee C. Mulligan