Collectibles, such as jewelry, art or wine, can be a valuable part of your estate, but they present unique challenges when it comes to estate planning and wealth transfer. They are often much more difficult to value than assets like cash, stocks and bonds, and have emotional meaning that may not be shared by future generations. Without proper planning, heirs might find themselves with unnecessarily high taxes, liquidity issues, family disputes over ownership and a host of other concerns.
Discuss the value of your heirlooms with your AMG advisor and potentially your heirs in order to establish a plan to execute your wishes and address any tax liability. Often, if such collectibles are simply left as part of a general estate, they become part of a family feud and might be sold off contrary to your wishes.
Bottom line: know the value of your collectibles, be specific about your wishes regarding distribution after your death and don’t assume your heirs will have the same emotional attachment.