What Are The Estate Planning Complications for an Art Lover?

As art collections increase over time, they become more important in terms of estate value. They can also become more problematic if the heirs are not lovers of the medium. The use, donation and loan of art can involve a transfer of wealth valuation which can benefit collectors as appraisals are often not done. 

As art is an illiquid asset, an appraisal by an independent broker can be set low and can be found acceptable by a tax man. recognizing potentially high gift taxes, one interesting tool can involve transfer of ownership and not the work itself, done in exchange for a promise to pay or replacement with a trust with a lease back provision.

Make sure to consult with your estate planning attorney today to learn more about how to protect yourself if you are an art owner and wish to maximize its value or determine where it will go after you pass away.