Putting a Price on Priceless Art for Your Estate Plan

This week’s Wall Street Journal covers a topic all of us have probably worried about 

sometime or other: how to account for a $10 million Rembrandt in our estate plan. Fortunately, there are steps to take to ensure that our wishes are met and our tax burden is minimized. First off, one must be careful not to sidestep the law. If beneficiaries simply walk into a decedent’s home and pull artwork off the wall before an estate clears probate, they can be held criminally liable.

Another item to bear in mind is that one must account for the value of artwork when designating beneficiaries. For example, if half of your $20 million estate is that $10 million Rembrandt, and you choose to leave it to Susie and the rest of your estate to Charley, Charley may get stuck with a tax hit for the painting. In a case like this, the will should specify that each party must pay his or her share of the estate tax.

For a more in-depth treatment on the matter, you can consult the article here.