Do you collect coins, cars, or cans?
Thu Jun 27, 11:31am | Share
What do you collect? More than 100 million Americans were collecting the 50 States Quarters during the early 2000s. Coin collecting is one of the most popular hobbies in the world, but there are many kinds of collectors. Some collect spoons, some are still hoping for Beanie Babies to make a comeback, and some collect art worth varying values.
Below are important steps in managing your collection:
- Tracking and Documentation Personal property items are easily “lost” or forgotten. They may be lost in an attic in a house sold to strangers, taken without permission by family, or misplaced in general. In order to track such inventory, save documents on a computer with copies in your estate file. This should include photos, receipts, appraisals, certificates of authenticity, and other information. There are many online services for this as well.
- Security and Insurance Employing safes, safety deposit boxes, and fire boxes should be considered. Since transportable valuables present greater risks, not only of theft but also fire/disaster, review your insurance coverage to clarify. Often, separate deductibles, endorsements, riders, proofs of location and ownership are needed in case of a claim to an insurance company. This is another instance that photos, receipts, appraisals and other information are key to protecting your collection.
Whatever you collect, do you have a plan for when you pass? Will your spouse gain the collection? Will you donate it to a museum? Would you rather sell it before you pass?
- Assignment and Transfer It’s a good idea to make sure all applicable parties, including heirs, attorneys and advisors, are kept current on inventory lists or other tracking mechanisms. Clear instructions on who gets what is key to make sure nothing gets lost and no one is shortchanged. We can help file the correct documents, such as a will or a directive letter.
- Taxes Keeping up-to-date inventories is also important if an estate tax return is due. It’s not uncommon for these items to be forgotten at tax time since, unlike securities, bank accounts and real estate, the IRS can’t easily track estate ownership of the assets.
- Selling Your Collection There are many reasons to consider selling your collection yourself: see the monetary value of your collection, raise funds to keep collecting, easier/fairer to distribute money than items, and oversee how your collection is sold and garner the accolades of your passion.
Do you have questions or want to boast your collections? Give us a call today to make sure your estate includes collection information. We want to know what you collect!
Sources: SmarterHobby.com, Forbes.com, HeritageAuctions.com, FEPLG.com