Memorabilia collectors should create plans for the transfer of these assets.
Estate planning is essential for retaining control over who inherits assets.
When preparing for the transfer of assets, most people list life insurance policies, investment accounts, and bank accounts.
Tangible assets are often overlooked.
According to a recent Kiplinger article titled “Estate Planning for Memorabilia Collectors: Don’t Leave Your Family in the Lurch,” sometimes collectors even forget to include their memorabilia.
Memorabilia requires particular planning steps.
First, people should inventory the items in their collections.
The list should be current and thorough.
If a specific item was used in a game or was signed, then these details should be included in the inventory.
You should also include a valuation for each of the items on the list.
Although some categories of memorabilia are known for significant value fluctuations, even a ballpark estimate can be helpful in valuing the collection.
You can also keep tabs on how much similar items are faring at auction and can follow industry publications.
Estimations only go so far, however.
You should hire an appraiser for the memorabilia to get an official valuation.
If you have authentication paperwork, you should keep this safe and accessible to prove its legitimacy.
Your family will be responsible for either the distribution or sale of your memorabilia.
You can help them by making sure they know your collection.
Take time to walk your loved ones through your inventory.
Be sure to share the location of certificates or other paperwork for the items.
Files folders can be a great way to organize and store this information.
Researching and contacting dealers and buyers for the collection can increase your chances of getting paid more for the value of the collection.
Collectible shops often purchase inventory for half the price because they plan to resell for profit.
Connecting with auction houses to sell your memorabilia can simplify the estate settlement.
Collectors need to take specific steps to ensure their valuable items are treated with the care they deserve.
Reference: Kiplinger (Feb. 26, 2023) “Estate Planning for Memorabilia Collectors: Don’t Leave Your Family in the Lurch”