As an artist or a collector, you may have numerous pieces of art on your premises. After your death, the distribution of art in the estate plan may pose a significant issue, so it pays off to think about what will happen to your art collection. An estate planning attorney will help ensure that there is a guide for your heirs. It will serve a great purpose when organizations and people claim your assets, including children, spouses or business partners.
Factors to consider in estate planning when art is involved
The legal issues involved may be daunting when art is involved in your estate plan. Procuring the services of a professional attorney may be an upfront cost, but you should consider when will happen if you fail to seek the assistance that you need. You should ask yourself the following questions:
- What will happen to the pieces of art?
- Who will ensure that your assets are distributed as per your wishes?
- How will you avoid any challenges that arise among your relatives?
- If any of the artwork has been licensed, how will you notify your kin about it?
You may want the art to be donated to charity. Without legal documents in place, your wish cannot be fulfilled. Also, consider the tax implications involved when the art is distributed to your beneficiaries. To get rid of the tax liabilities, you should carry out proper planning.
It is advisable to start estate planning once you begin acquiring pieces of art. An attorney may help determine the right time to prepare and present the documents required to initiate the process.
Why should art be valued properly?
The majority of estate plans entail dividing financial assets; however, they may fail to address issues entailing complicated assets that have sentimental and monetary value, including stamp collections, jewelry and antiques. In some situations, family members present their options, and they can discuss the fair market value for the assets. The difference in opinions is the major issue, and that’s why legal help is advisable in such cases.
If you own art, you should be aware of the laws revolving around the artwork. By working closely with an estate planning attorney, you may be able to maximize the value of the art for each beneficiary while minimizing taxes. You may also better ensure that there are no family disputes.