Any collector of expensive items should carefully consider the benefits of consulting with a knowledgeable estate planning attorney about how to plan for these assets to exchange hands in the future. In many cases, your children may not be interested in the art collection that you have built up over time.
If you have recently inherited artwork and are new to the art world, it is important to turn to a professional before deciding to sell art. This can be an extremely complicated process and having a professional at your side can help you determine the most appropriate step for you. Appropriate introductions to the market and accurate valuations are crucial for selling art.
Capital gains taxes are currently on the rise. This means that art assets that have increased in value are costly to sell outright. One way to minimize your tax burden is to donate the art to a museum. This can also be a way to ensure that future generations enjoy the art that you have collected. Donations of art to a museum or public institution can help to offset up to 50% of a donor’s income. This deduction will be capped at 30% of donations to a private institution and will be phased out based on the owner’s income.
Still, this can be a viable option for someone who has spent most of their life building an art collection. Many collectors who have large numbers of art assets will have their museum donation schedule planned well in advance. Communicating with a museum early can help to identify their needs and preferences and give you a clear timeline for accomplishing these goals. Talk to an Ohio estate planning attorney to learn more about special collections.