Three Estate Planning Considerations for Collectors
Do you have a collection? Many people enjoy collecting as a hobby, and each of their collections has value. The values of the individual items in your collection, as well as the value of the collection as a whole likely comprise a significant portion of your assets. In other words, your collection and all of the items in it must be given careful consideration in your estate plan.
Estate planning for collectors can be complicated, but it is critical that you attend to all of the details. You care enough about the items in your collection to have acquired them, and estate planning is how you can ensure that they will be cared for and enjoyed by others well into the future. There are several areas that collectors will want to address in their estate plans, and today we are going to look at three of them.
For example, many valuable items end up being misplaced or even stolen. It is crucial that you have an up to date inventory of the items in your collection at all times, and that you have a workable system for tracking things that come in and go out, in addition to securing receipts, paperwork, and other items related to the provenance of the items in your collection. Knowing what you have and where it is located is an essential thing for all collectors to do regardless of whether they are currently involved in estate planning or not.
When you make an estate plan, your inventory list must continue to be updated as you acquire new items and sell others. In addition to your inventory list, create a list of whom you would like to inherit each piece, being sure to include all identifying characteristics. Including identifying features like serial numbers is essential because it ensures that when your executor is administering your estate, they will have no question about which one of your five Oliver 77 tractors is to be given to your daughter and which you have bestowed upon your nephew. In addition to keeping your inventory list and list of bequests current, be sure to keep copies of the list with your estate planning documents and forward them to any people who need to know about them.
Insuring and protecting the security of your collection is something that you’ll want to do both before and during the estate planning process. If you do not yet have insurance on your collection, now is the time to meet with insurance agents who know about the particular types of items in your collection. Compare the rates and coverage that various insurers can offer you and select a policy that meets your needs. Also, assess whether your items are in a secured location. Do you need to get a safe, a safe deposit box, an alarm system, or some other means of securing the items in your collection and protecting them from theft? If so, evaluate the available options and make sure that your estate planning documents, when you create them, include information about all insurance policies and security systems related to your collection as well as how to access the items at the appropriate time.
If you are a collector who needs to get started on estate planning, call Wichita attorney J. Joseph Weber today to set up an appointment for a consultation. We can be reached by telephone at (316) 265-7802, or you may contact us through our website.