SPECIAL REPORT: ART, AUCTIONS & ANTIQUES
By Caryn B. Keppler & Jodi C. Lipka
According to a 2014 study by the Center on Wealth and Philanthropy of Boston College, an estimated $51.8 trillion (in 2007 dollars) in assets will be passed inter-generationally between 2007 and 2061.1 A good percentage of those assets will be tangible personal property, including art and other collectible assets. The foregoing estimate was based on the continuation of the then-$5 million federal estate tax exemption. With the passage of the Tax Cuts and Jobs Act of 2017 and the increase in the federal basic exclusion amount to approximately $11.2 million per person,2 that number is now, undoubtedly, a low estimate. Despite the fact that a vast amount of wealth is held in the form of art and collectible assets, most legal, financial and tax advisors fail to counsel their clients on appropriate planning techniques for their collections both during life and at death. In our opinion, here are the top 10 mistakes made when planning for art and other collectible assets and how to avoid them.