Some of the most lasting impressions people hold about a loved one often relate to the unique collections they maintained during their lifetime, be it a barn filled with antiques, a basement of memorabilia, or a home lined with shelves of carefully curated treasures. These collections might include sparkling glassware, vintage toys, polished furniture, or any number of cherished items. While such collections can hold sentimental and monetary value, the process of managing them after death often presents challenges for heirs who may not fully understand their significance or worth as a trust lawyer knows all too well.
One common issue with tangible personal property is the lack of proper documentation and valuation. Beneficiaries may inherit items without any guidance on their value or how to preserve, sell, or distribute them effectively. As a result, valuable pieces may be undervalued or even lost altogether. Without a plan, those left to manage the estate may only realize a fraction of the collection’s true worth.
While some reports suggest that the next generation is less interested in managing or selling inherited collections, others emphasize the continued value of tangible personal property, provided it is properly understood and managed. A comprehensive estate plan that includes tangible property not only protects the assets but also supports beneficiaries in making informed decisions.
Steps To Create A Plan
Collections vary widely and may include jewelry, art, furniture, books, dolls, baseball cards, and more. Regardless of the nature of the collection, the first essential step is inventory as our friends at Bott & Associates, Ltd. would advise. A complete inventory should list all items in the collection, include photographs, and note the current location of each item. Details such as creation or acquisition dates, bills of sale, licenses, assignments, or copyrights should be included whenever possible. If items are currently housed in galleries or have appeared in auction or exhibit catalogs, that information should also be documented. A certified appraiser should assess the value of the collection, and the inventory should be updated regularly.
The next step is aggregation. Collections often extend beyond the items themselves and may include supporting documents such as catalogs, correspondence, provenance records, or sales documentation. Grouping these materials with the items they support can significantly impact their value and make them easier to manage. In some cases, a larger collection may benefit from being divided into smaller segments based on value, intended recipients, or market trends. Highlighting particularly valuable items during life — and educating beneficiaries about their importance — can ensure those assets are handled appropriately and may improve the chances of realizing their full value if sold.
The final step is management. A collector must consider whether future beneficiaries have the skills or interest needed to manage the collection. Market fluctuations, acquisition opportunities, and sales strategies all require a level of expertise. In many cases, professionals such as fiduciaries, appraisers, or specialized consultants may need to be involved. Management responsibilities can include insuring the collection, properly storing or transporting items, or establishing provenance. Intellectual property rights, such as copyrights for photographs or music, may also need to be addressed.
In estate planning, tangible personal property is often overlooked. Not every item has significant monetary value, but when a collection does, proactive steps should be taken to preserve it for future generations. With proper planning, collectors can ensure their legacy is protected and that their beneficiaries are well-positioned to appreciate, manage, or monetize the collection appropriately.
If you own a collection or tangible assets of unique value, an attorney can assist with the planning process and help ensure those items are handled with care and intention.