Q&A: A collection of advice on selling collections

Dear Liz: I concur with your advice regarding selling collections. I am a retired licensed marriage and family therapist. I’ve witnessed clients struggle with caring for a loved one and their things. One family started taking photos of their loved one with much-treasured collectible objects, and recording the stories told about them. This offered increased connection and understanding across the generations. With this recorded story, it was easier to release and sell the things. And there were a few treasures that family members asked to keep, pleasing their elders immensely!

Answer: What a lovely idea! As collectors know, it’s all about the story, and many would embrace the chance to share theirs.

Dear Liz: A friend collected and has some wonderful pieces of Japanese items such as antique tonsu chests and porcelain, some of which are quite valuable. When she was updating her estate plan, her attorney suggested she ask me, as a friend and fellow collector, to be an advisor to her family about disposing of these items after her death (assuming she predeceases me). My contact info was then shared with her loved ones. Another trick I have seen is to have copies made of receipts with identifying information and prices paid placed inside drawers of valuable furniture. Whether these items are sold at auction, estate sale or upscale consignment, the information is extremely valuable in helping to determine authenticity. Naturally, this information should also be stored with legal documents. Prior to a recent surgery I also shared my information with my sister and went over the location in my files for all pertinent information. It can be difficult for heirs to differentiate Baccarat crystal, vintage Wedgwood china and top-quality French copper from goods sold in discount chains. Once they know what the items are, the internet and EBay make it easy to get a sense of the value of items for sale. Hope you find this helpful.

Answer: Very much so, and I’m sure readers will as well. Thanks for the tips!

Dear Liz: Regarding your advice to the collectors and the impact on the executors, there can be another wrinkle: disagreements on valuations among the heirs.

I’m the executor for my parents’ estate and my mother spent a considerable amount of time and resources collecting art. Unfortunately there is little documentation on the art and it is in a niche market where it will be hard to get accurate values.

I’ve decided that when the time comes, I will use what little documentation my mother had to establish values and then divide the art collection among the heirs. If the heirs want to liquidate the art, that is their choice. It takes me out of the middle of squabbles over whether or not I got a “good” price for something. And it gives me time to decide for my portion of the collection what pieces I want to keep for myself and what I want to sell. This obviously only works when the heirs are people and not organizations and they have the ability to take the collection rather than a check.

Answer: Oh, boy.

If you are the executor, you will have a fiduciary duty to the estate. What that means is that you will be legally required to act in the estate’s best interests, rather than in your own. Cherry picking a collection is an excellent way to violate that duty and potentially get yourself sued. Another way to invite lawsuits is to rely on scanty, out-of-date documentation to establish values without attempting to get current appraisals.

If you really don’t want the hassle, ask your mother to designate, in writing, who gets what. She should discuss this with an estate planning attorney to see if her estate documents need updating or if she can include a letter detailing her bequests.

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Comments

  1. Barry Solomom says

    I have collected PNCs
    Philatelic Numismatic Combinations
    Which most people have never heard of
    I will probably donate them so my heirs will have a “clean” inheritance
    Of stocks funds cash and a home
    We had our 2 daughters pick the jewelry already and the graves are paid for. It sure makes our lives much
    Simpler by knowing there will be no
    battles once we are gone I.e. dead