Sometimes putting the wrong documents in place is actually more costly than having nothing in place at all. Download our guide on how to avoid a DIY Will and what Carrier Law can do to help.

Common Problems with DIY Wills

Artwork and collectibles are an important asset in many of our lives. When it comes to estate planning, you do not want to leave the future of your beloved collection to chance. If you are unsure how to manage it, you are not alone – many collectors do not consider putting their artwork into their Will or Trust when they initially set up their estate plan. Luckily, you have options to ensure your collection is handled to your specifications when you die.

Sell Your Collection

Artwork is more expensive to sell than other assets. The capital gains tax on art and collectibles is 28 percent, compared to the typical 20 percent.¹ This can be reduced or even eliminated if the decision to sell is made after you pass. If you decide you want to have a say in who receives your collection, you will be responsible for paying a sales commission, other taxes and shipping costs.

Your beneficiaries may not understand the value of your artwork, so it is best to meet with an appraiser who can give you a better idea of what it is worth.

Leave Your Collection to Your Heirs

If your heirs want to keep all or part of your collection, you can specify this in your Will. The best way to ensure your artwork is cared for is to provide the recipients with the resources to maintain it. This includes a list of appraisers, insurance agents, historians and other specialists who have worked with you to develop your collection.

You can also transfer your artwork and collectibles using an LLC.² The family members included will be responsible for the collection as a group. For example, if they decide to sell one piece, they will split the profits evenly. You must select at least one of your heirs to manage the collection, including maintaining insurance, display and storage for the artwork and making decisions regarding sales of individual pieces.

Donate Your Collection

If you donate your artwork to a museum or charity, you can claim a tax deduction of up to 30 percent of your adjusted gross income (AGI).³ The IRS requires a qualified appraisal made within 60 days of the donation date for any collection worth more than $5,000.

In some cases, you may be able to specify how your art is displayed, such as in a specific wing of a museum and whether you would like your name included with the collection.

Keep in mind that your artwork may not be permanently displayed in the museum you donate it to. Due to decreased funding and limited storage space, major museums often limit donations, particularly if you want to give your entire collection.⁴

Create Your Own Museum

Depending on your resources and the size and relevance of your art collection, this option may be in your best interests if you cannot find a museum willing to accept your donation. Your collection should be large enough to justify the costs of opening and maintaining a museum.

Protect Your Collection With an Estate Plan

Developing an estate plan is one of the best things you can do for yourself, especially if you have artwork or collectibles you want to protect. The attorneys at the Law Offices of David L. Carrier are committed to helping you preserve your collection. We will work with you to create an estate plan that safeguards these valuable assets and minimizes the stress your family may experience when you die.

Call 616-361-8400 to start planning for your estate today.

¹ https://www.artworkarchive.com/blog/how-to-create-an-estate-plan-for-your-art-collection

² https://www.investopedia.com/articles/personal-finance/071514/using-llc-estate-planning.asp

³ https://www.kahnlitwin.com/blogs/tax-blog/what-are-the-benefits-of-donating-artwork

⁴ https://fa.morganstanley.com/dowellgroupsb/the-art-of-donating-art.htm

In the U.S. an estimated 5.4 million people are living with Alzheimer’s disease

Are Your Legal Documents In Order?

How can anyone know the true devastation of Alzheimer’s unless you have had a loved one affected by the disease? In Michigan, there are 180,000 people aged 65 and older with Alzheimer’s. According to the Alzheimer’s Association, they expect that number to grow 22% by the year 2025. The need to plan while you are well and able becomes more significant as we age.

The financial and emotional implications of becoming disabled before dying can have a profound effect on one’s family. It’s hard enough to see a loved one decline but wondering if you can afford to get them the care they need, is even more stressful. Estate planning attorneys can help you protect your assets and plan for what you hope won’t happen. In the United States, someone develops the disease every 66 seconds. We can never be certain it won’t happen to us.

John and Karen had been married for over 40 years when John started to notice some changes in his wife’s behavior. They were subtle at first and they chalked them up to “senior moments”. She would get confused while cooking. She began to have trouble with simple math. (Karen had been an expert at calculating the discount at Macy’s in her head!) But, when she started wearing heavy clothes in the warm weather and accused the cleaning lady of taking things, he knew it was something more. After the diagnosis, the next chapter in their life journey began.

Fortunately, they planned ahead. They had their Durable Power of Attorney- Medical and Financial, Living Will, Advance Directive, Revocable Trust and Irrevocable Trust prepared and updated by an Elder Law attorney. They had peace of mind knowing their legal documents were in order.

But, how about the physical and emotional toll being a caregiver would take on John?  In Michigan, they took advantage of the Program of All Inclusive Care for the Elderly (PACE). They were able to keep Karen safe at home, provide housekeeping services, medical transportation, socialization at the day center, and all her doctors. This was at no cost because they qualified and did the planning and application with an expert Medicaid attorney.

An Elder Law attorney has the expertise to counsel seniors and their families on how best to plan, with a primary emphasis on promoting the highest quality of life for individuals. For more information on Alzheimer’s visit http://www.alz.org/

If you’re in need of estate planning assistance, contact the experienced lawyers at The Law Offices of David L. Carrier.