Great Lakes Family Probate and Estates
By Kimberly Crank Browning
January 6th, 2023
Stamps, figurines, movie posters: Lots of people collect these items, and their heirs find it easy enough after the collectors pass away to put them back into circulation. But what if your eye tends to more unusual objects?
Do you have a plan for the 11,000 bottles of hot sauce in your basement, or the 105 bagpipes the neighbors love to hear you play? How about your small but exquisite collection of incunabula?
The collector’s vision is an idiosyncratic one, which is exactly why their collections are so unique and memorable. But they can also be difficult to put a price on, and can be subject to surprisingly high taxation when they are. To ease the burden on their beneficiaries, and to make sure a beloved collection is handled in keeping with their wishes, collectors should include it in their estate plan.
The first thing to do is to have your collection appraised. Working with the right appraiser is key!
If the suspected value of a collection exceeds $3,000 for each piece, or $10,000 total, the IRS requires an appraisal before the collection can be included in an estate plan. Moreover, individual items in the collection with a claimed value of $50,000 or more must be referred to the IRS’ Art Appraisal Services (AAS) and reviewed by the Art Advisory Panel. The AAS works with the IRS to evaluate the items so that their claimed fair market value can be verified. This prevents valuation issues from cropping up after the collector dies.
Appraisals help your executor, trustee, and family members decide the value of a collection. But don’t just go to any old shop for your appraisal: look around to find a qualified appraiser with expertise in the type of items you’ve collected. If you’re looking to determine the value of your Fabergé Egg collection, for instance, you don’t want to hire an appraiser who specializes in rare coins or foreign flags.
