What is Art and How Can You Leverage It? Part 1
Magnusson Group President Lynn Magnusson, ASA, AAA recently met up with estate planning guru Martin Shenkman, CPA, MBA, PFS, AEP, JD of the Shenkman Law Group to discuss the importance of the inventory and evaluation of art and personal property for financial management purposes.
“High-net worth individuals typically keep upward of 20% of their wealth in tangible personal property like art, antiques, and collections. However, not enough client collectors, and certainly too few advisors, address this asset class. More often than not, the identification, valuation and disposition of personal property falls upon the executors and beneficiaries of an estate.
Meanwhile, a collection of personal property could be effectively leveraged in a variety of ways, while the owner(s) are still living. It all starts with an inventory – the proper basis of any professional appraisal.
If you’re an advisor talking to clients that have an inventory or previous appraisal of their personal property, go over what they’ve done to confirm that the valuation purpose still reflects their current needs. Through discussions with an appraiser, a person should come to fully understand that art and collectibles are a tangible asset in one’s portfolio. Careful consideration and research should be executed to fully articulate the qualitative information about those assets.”
– Lynn & Martin