Estate Planning Can Get Tricky When Art Is Concerned
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Estate Planning Can Get Tricky When Art Is Concerned

Estate Planning Can Get Tricky When Art Is Concerned

Art investors are nearly always advised not to invest in art at all, but to collect it. Buy what you like, the conventional wisdom goes, not what you expect to increase in value. But collectors still must contemplate financial matters, especially related to inheritance, advisers say. It’s essential for them to consider what will happen to their art when they are no longer around to appreciate it. “As somebody’s art portfolio gets more valuable, it becomes a more significant item in their financial and tax lives,” said Michael Delgass, managing director of Sontag Advisory, a financial planning firm in New York. Like collecting itself, the planning surrounding it has tangible and intangible aspects, especially involving legacy issues, Mr. Delgass said. There are often unpleasant tax consequences for heirs, who may not be related to the collector and who may not be connoisseurs if they are. “If you have a very valuable art collection, you may feel responsibility to the public to preserve it,” he said. Meanwhile, “it’s not a given that just because you love it, your kids will love it. Do you want to allocate family resources to hold that forever?” Specialist advisers exist […]

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