What Happens to Your Art Collection? PLANNING FOR THE FUTURE By Amanda Dunn
F
or many collectors, their interest in acquiring art is a passion. People spend their entire lifetime building their collection, and it can make up a substantial part of their net worth. But, unlike the thoughtful planning that is often intrinsic to other assets, the majority of collectors have not crafted a plan of action for their art collections. Should the unlikely happen, what would become of your collection? Have you communicated with your family and friends about your works and their value? Have you laid out a comprehensive plan so your collection can go from one generation to the next or to the greater community to enjoy?
So how do you prepare for the inevitable?
First, take the time to inventory your collection by listing each piece along with the provenance, bill of sale, condition report, authentication, photos, artistic biography, insured value, and location. There are great inexpensive online collection management tools such as Artwork Archive that can help you to document this information for future use. We’d recommend that you update your inventory every time you make a new purchase to ensure you have the most accurate records.
What is your ultimate objective?
Ask yourself, is your collection your legacy? What are your objectives? Do you want your family to retain your collection or own it? Do you have an execution strategy, such as an auction house, in place? Formulating a comprehensive succession plan for a collection is significant, important, and challenging. No plan is static
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2 LEGACY ARTS Issue 34 Febuary 19 www.paragonroad.com 2016 www.paragonroad.com