Estate Planning for Your Baseball Cards and Other Collector’s Items
THE COUNSELOR
Volume 9 • Issue 12 • December 2019
The Counselor is a monthly newsletter of Hallock & Hallock dedicated to providing useful information on estate planning, business succession planning and charitable planning issues. In this month’s issue, we will discuss planning for our collectibles. If you are interested in learning more about the ideas and processes discussed in this newsletter, please contact us for an initial consultation.
As you are sifting through the personal effects of a recently departed relative, there it is, the holy grail of baseball cards. The 1909 American Tobacco Company Honus Wagner baseball card. Even in rough condition, it will regularly sell for more than $1 million.
But now what? Who gets the card? Should it be sold? Should it be donated? Should it be preserved as part of a family legacy? What does the estate plan say? Unfortunately, probably nothing.
While it is surely rare that an estate would have a collectible with the notoriety of the Honus Wagner baseball card, it is not unusual for an estate to include collectibles. The family may not be aware of the collectibles. If they are, unless you have provided guidance, they are likely unfamiliar with the value. They are likely unaware of your wishes. They almost assuredly do not know the best channels for disposing of the collection.
Whether it is baseball cards, art, stamps, or coins, if you have collectibles, what are some of the steps you can take to plan for the best result?
Appoint a special advisor in your will or trust that has a background in the subject matter of your collection to assist your trustee or personal representative with decisions.
Make sure clear instructions have been provided on proper storage to preserve the value.
Identify qualified appraisers that can assist the trustee or personal representative in establishing the value of the collection.
If the collection is to be sold, make arrangements in advance with an auction house or other appropriate provider and identify them in the estate planning documents.
If you wish to donate your collection, discuss the donation with the recipient to make sure they will honor your wishes and nominate at least one back-up.
Understand the differing tax consequences of lifetime gifts, gifts at death, and sales.
Communicate your plans to your heirs.
Collections can be fun and sometimes they can be valuable. In addition to the economic value, there is often an emotional attachment. If not properly planned for, family discord can be the result. Make sure you take the time to plan for the management and distribution of your collectibles.
This Newsletter is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.