Collectors and their families often underestimate the value of those collections, according to a New York Family Lawyer.
Many times, someone will have a collection and instruct their children to take it when they die, so the IRS doesn’t get hold of it. Unfortunately for the family, the IRS will notice the extra income once the items are sold. If these are especially valuable (like more than $10,000), there had better be some really good accompanying paperwork to avoid some heavy taxes and/or fees.
Some of these collections cannot be split, so if there are four kids, it’s not likely they can equally split up certain things like paintings or expensive books, which means selling them at an auction. This can sometimes gain as little as 30 cents on the dollar, once taxes are subtracted, reports a New York Family Lawyer.
There is no federal estate tax to worry about in 2010, but it may very well come back in 2011. One way to get around this might be life insurance. Some life insurance policies will pay the costs of the taxes, leaving loved ones free to get the full inheritance.
New York Family Lawyers recommend, at the very least, careful documentation of each item in the collection, including its value and history, to catch the interest of investors.
Need legal advice about family matters? A New York Family Attorney is the best source for answers. Matters don’t always have to be headed for trial for you to use the services of a New York Family Attorney.
The firm of Stephen Bilkis & Associates with convenient locations thorughout the Metropolitan Area, including servicing Flatbush, Manhattan, N.Y., can be of invaluable assistance to you if you find yourself a party to a case. Facing the Court without professional representation could lead to disastrous results.