No One Will Appreciate Your Collection—Whatever It Is—Like You Do
Many people develop a deep emotional attachment to their collectibles and can incorrectly overestimate their worth no matter how good of an investment they may seem. Others find it difficult to even think about parting with their items. While you are well and able to maintain your collection, naturally you will want to continue to enjoy it. However, as you age, deciding what to do with your collection—an often-difficult process—can save you and your family untold grief and trouble after you are gone. What’s more, it is a sure way of knowing your items will be appreciated rather than having them end up being dropped off at Goodwill, undervalued and sold at the estate sale, or worse, causing a fight among your family.
Here Are A Few Key Steps To Keep In Mind About Collectibles Relative To Your Estate Planning
- Whatever your collection is, get a qualified appraisal so you can know its true fair market value and consider it a great investment.
- Have conversations with your loved ones to learn their impressions of your collection. You may have a budding collector among your grandchildren, children, or other relatives. Understanding their feelings can help you make better decisions.
- If you learn that no one in your life has any designs or interest in your collection, you can eventually sell it and use the cash anyway you wish.
- If you learn you DO have a loved one who admires and appreciates your collection, you can use the annual gift tax exclusion to pass on the items while reducing or eliminating your tax burden.
- Each family situation is different. As you consider estate planning and discuss your collection with family, keep in mind family members also may have emotional attachments to your items and these emotions can shift to the ugly side of things quickly. Be firm yet vague as you discuss your intentions until you make your decision known.
The more you learn, the more you can best be prepared! Join us for our 12 Deadly Sins of Estate Planning and How to Avoid Them, a monthly FREE seminar. Pick a date that works best for you.
