Estate planning tips for collectors

On Behalf of | Apr 16, 2019 | trusts

Individuals who like to collect valuables may have to work a little harder to ensure that their estate plan accounts for those items. This is because payment and other records may not be found on tax returns or other formal statements. Therefore, North Carolina residents and others may want to use computer software to inventory their items. It may also be a good idea to use software to keep track of appraisals or other records related to an object.

Those who own valuable items should look into various methods of securing them. Security measures that people commonly use include safes, safe deposit boxes and various types of alarm systems. It could also be helpful to purchase an insurance policy to protect against financial loss in the event a collectible is damaged or stolen.

Typically, collectible goods such as art or other antiques are more valuable and desirable when their authenticity can be proven. This can be done by getting a certificate of authenticity or other records verifying where an item came from. Notes from the creator of a piece can also bolster a claim that it is a real painting, sculpture or piece of art. While these actions don’t eliminate the possibility that an object is a forgery, it significantly reduces the chances that this it the case.

Individuals who own expensive items or otherwise have a high net worth may want to consider using a trust as part of an asset protection strategy. Trusts hold assets outside of estates, which means that they may not be repossessed or liquidated by creditors. Furthermore, the language of a trust can be customized to ensure that beneficiaries are only allowed to use assets for certain purposes or obtain an inheritance after certain conditions are met.