We all have hobbies and interests that we are passionate about. For some, these interests may be fixing up old cars, for others it may be following a particular sports team. Whatever your hobby or your passion, you may have spent years or even decades carefully building your collection. Art work, firearms, porcelain figures, cars, or even airplanes are just a few examples. It is important to build your estate plan with an eye toward protecting your collection as well as your intended beneficiaries.
When trying to decide which friend or family member will receive your collection when you pass away, you should carefully consider whether the intended recipient will care for your collection as cautiously as you do. Choosing a beneficiary who shares your interests and appreciates the collection can ensure that the collection will remain intact for future generations to enjoy.
Another very important consideration is the value of your collection. Especially in the case of art or vehicle collections, it is quite possible that the collection is worth a substantial amount of money. If you pass your collection directly to a beneficiary through your Last Will and Testament, it could expose your estate to estate tax liabilities. Gifting your collection before your death or transferring it to a trust can keep the collection from passing with your estate and reduce the chance that estate taxes will be assessed, as the post-gift appreciation is passed on to your beneficiaries.
Some items are more heavily regulated than others, which is another important consideration. For example, the sale and transfer of firearms can be complicated and expensive if you own firearms that are subject to regulation under the National Firearms Act. This will save your executor from trying to ensure compliance with the complicated federal and state laws surrounding the transfer of firearms from your estate to your named beneficiaries. Other types of assets that may require this type of extra attention to federal and state regulation would be collections of airplanes, cars, or airplanes.
Our lawyers understand that your collection is important to you and represents more than just an assortment of items. Call us today and we can talk with you about the specific solutions for your assets and your collection.
