For art collectors in Ohio, paintings and sculptures are often their most precious possessions. Accumulated over years and at significant cost, art collections reflect not simply financial investments but also aesthetic passions. At the same time, they can be valuable assets. Despite that fact, many people hesitate to make a plan for how a collection will be handled after death. However, failing to include artwork in an estate plan can come with significant costs for heirs.
By including artwork in a comprehensive estate plan, collectors can help to protect their loved ones from excessive tax burdens and other expenses. For example, disputes over the disposition of artwork can lead to ongoing battles and even legal disputes, the cost of which can eat up the value of a person’s estate as well as divide family members from one another. Collectors can utilize trusts or charitable donations to pass on their pieces of art. Another option is to create corporate vehicles to hold the works, enabling them to pass outside the probate system.
Estate planning for an art collection can also include assembling the documentation that can accompany valuable pieces. Establishing the provenance of a piece can make it more valuable and easily sold on the market. In addition, collectors should be careful to specify individual pieces and their recipients in order to avoid disputes between heirs.
Art collections can be an important part of the estate planning process. An attorney can advise a collector about the best ways to pass on their valuable pieces in the future. Ultimately, this could help loved ones avoid unnecessary taxes and protect a well-loved collection.