A few years after Joan Rivers’ death in 2014, her family put hundreds of Joan’s personal items up for auction at Christie’s in New York.
As The Financial Times reported in “Why an art collector’s estate needs tight planning,” a silver Tiffany bowl, engraved with her dog’s name, Spike, made headlines when it sold for thirty times its estimated price. This shows how an auction house can generate a buzz around the estate of a late collector, creating demand for items that, had they been sold separately, might have failed to attract as much attention.
A common problem for some collectors of art and other valuable collectibles is that their heirs may feel much less passionately about the works than the person who collected them.
If you’re a collector, you can gift, donate, or sell during your lifetime. You can also wait until you pass away and then gift, donate, or sell posthumously. If you want to make certain your wishes are carried out or to eliminate family conflicts after your death, you can take the decision out of the hands of your family by placing your valuable collection into a trust.
Your trust will have your wishes documented in the agreement and you can choose the trustees – whether you choose trusted family members or independent advisers. You, as a collector, might like to seal your legacy by making a permanent loan or gift of art to a museum. However, your children or other family members can renege on these agreements if they’re not adequately protected by trusts or other legal safeguards after your death.
Even with a trust or other legal structure put in place to preserve a legacy, the key to avoiding a fight over a valuable collection after your death is to have frank discussions about estate planning with your family well before the reading of the Will or trust. This can ensure that your wishes are respected.
Reference: Financial Times (June 20, 2019) “Why an art collector’s estate needs tight planning”