Has anyone here inherited a “premium” coin collection?

hfjacinto

I was recently speaking with my local coin shop and he said he got in his first serious premium coin collection this year. Usually he gets one in every year but this one was pretty impressive in that most coins were gold and the collection included some 5 figure coins.

The average collection they get is generally under $10000 with lots of the coins just being worth melt value.

He also said that when he gets one of the premium collections it’s almost always the kids selling their fathers collection.

So I was thinking did any of you inherit a “premium/high grade” coin collection?

While I inherited my dads collection in no way was it premium. He had several hundred of dollars in silver coins and a few better grade silver certificates. Not anything to retire on, but it did net me enough to complete a few holes in my collection

So the question is …. Did you get an inheritance in coins and was it a premium set?

HLT

A single trade dollar. And it was a really bad fake.

Smudge

I wish.

kaz

Nope. After my Dad died, my mom and sister put me in charge of handling his collection. This was about 2007; there was a lot of silver (rolls of Franklins, Washies, Roosies) and just 1 gold coin, a modern commem. Added up to about 7k. I remember thinking, "if he'd just bought a bunch of early 50s proof sets...". I recall that he saved all the silver change at his business ( a small loan co.) in the early 60s, he had jars of the stuff... and sold it when the Hunt brothers ran up the silver market in the 70s.

LanceNewmanOCC

no but it was several albums of which i had NO idea about any of the coins in them. probably would've been a LOT more if i had exhibited a shred of responsibility as a youth. honest but an numbnutz. what can ya do?

winesteven

Nope. However, while my adult kids (49 and 51) in theory one day could answer yes (if I don’t make it eight more years until 80, at which point I’ll arrange to sell it myself), like most others, they have absolutely no passion or interest. As such, they’ll follow my detailed written instructions on whom to contact, and what terms should be negotiated.

Hey @hfjacinto , I seem to recall you asking if I’m interested in adopting? lol.

Steve

DisneyFan

@winesteven said:
Nope. However, while my adult kids (49 and 51) in theory one day could answer yes (if I don’t make it eight more years until 80, at which point I’ll arrange to sell it myself), like most others, they have absolutely no passion or interest. As such, they’ll follow my detailed written instructions on whom to contact, and what terms should be negotiated.

"A day without fine wine and working on your coin collection is like a day without sunshine!!! "

So at 80, no more sunshine? Say it isn't so, Steve.

ricko

No...some generic Morgans, some large silver, old (1800's) German coins.... Nothing special numismatically speaking. Still have them. Cheers, RickO

winesteven

@DisneyFan said:

@winesteven said:
Nope. However, while my adult kids (49 and 51) in theory one day could answer yes (if I don’t make it eight more years until 80, at which point I’ll arrange to sell it myself), like most others, they have absolutely no passion or interest. As such, they’ll follow my detailed written instructions on whom to contact, and what terms should be negotiated.

"A day without fine wine and working on your coin collection is like a day without sunshine!!! "

So at 80, no more sunshine? Say it isn't so, Steve.

Well, I guess we’ll see what happens. God willing I make it to 80. On the one hand, there’s merit in making things easier for my kids by removing this task/burden from them, and also to some extent I suppose there’s some excitement to be had in seeing one’s collection sold.

On the other hand, will I be bored and miss the hobby if I still try to follow and participate with no collection currently owned? What will happen when I read/follow the forum after having sold my collection and someone posts something like “It’s My Birthday, Post a Coin with an ‘86”, or “Here’s my New FH SLQ, Post Yours”?

Time will tell (as noted, if I’m here in eight years). In the meantime, I’m having a helluva lot of fun with this wonderful hobby!

Steve

PerryHall

What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

PeakRarities

Not for me, my grandfather left me some old proof sets and an album with some silver. Some walkers, Morgans, other circulated silver. I sent one common date Morgan in that graded 64, that was the most valuable coin.

Jzyskowski1

Nope. Not my pop.
However, my father in law did leave a well worn Whitman blue 1909 and forward cent album. It’s put up and loved as the coins obviously came one at a time from circulation. Does have a 1909 vdb plain in fair condition 😁

littlebear

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

The advantage of heirs selling the collection is that they receive a "step-up cost basis," which means the cost is the fair market value at the time of death. So, if a coin was purchased in 1962 at a cost of $50 but is worth $2500 at the time of death in 2022, $2500 becomes the "new" cost basis (step-up cost basis). If the estate sell the coin for $2600, the capital gain is $100.

In the same scenario, if the coin is sold before death, the capital gain is $2550 ($2600 minus $50 cost).

"Stepped-up basis is a tax law that applies to estate transfers. When someone inherits investment assets, the IRS resets the asset's original cost basis to its value at the date of the inheritance. The heir then pays capital gains taxes on that basis.Sep 1, 2022"

From IRS Publication 551 (page 9):
Inherited Property
The basis of property inherited from a decedent
is generally one of the following.
1. The FMV of the property at the date of the
individual's death.

Treashunt

@littlebear said:

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

The advantage of heirs selling the collection is that they receive a "step-up cost basis," which means the cost is the fair market value at the time of death. So, if a coin was purchased in 1962 at a cost of $50 but is worth $2500 at the time of death in 2022, $2500 becomes the "new" cost basis (step-up cost basis). If the estate sell the coin for $2600, the capital gain is $100.

In the same scenario, if the coin is sold before death, the capital gain is $2550 ($2600 minus $50 cost).

"Stepped-up basis is a tax law that applies to estate transfers. When someone inherits investment assets, the IRS resets the asset's original cost basis to its value at the date of the inheritance. The heir then pays capital gains taxes on that basis.Sep 1, 2022"

From IRS Publication 551 (page 9):
Inherited Property
The basis of property inherited from a decedent
is generally one of the following.
1. The FMV of the property at the date of the
individual's death.

thank you for being accurate and citing the reference.

winesteven

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

True, and an excellent point. Up until two years ago, my collection was “under water”when taking reduced bids into account due to bp’s (and selling costs). However, with the market rise over the past two years for the kinds of coins in my collection, this now becomes an important and CONTROLLABLE factor in my decision.

Thanks.

Steve

nags

My grandfather was a collector and passed away in the year I was born, mid 1970's. He had put together some sets for his 5 children and also a few odds and ends. The stuff my dad received sat in a box in a closet for probably 35 years. My parents gave the box to me, which sparked my interest.

There was a set of lincoln cents which included the 1909 S VDB and 1914D, but no 1955DD. There were also a couple GSA dollars which started that collection.

Doesn't qualify as premium, but definitely started me in the hobby.

jerseycat101

I inherited a 1921-P Morgan from my grandmother, which is what kicked off my collection.

OAKSTAR

Nope! I guess most of us have make our own way in this hobby. Come back in a few years with the same question and ask our kids! 😂 🤣

stawick

Nope. All I got was a rock. Goooood grieeeeef!!!

I'm kinda the 1st in my family with most of my hobbies. Nobody else golfs, plays a musical instrument, has had a telescope, collects coins, etc.
Figuring it all out as I go.
My nieces will have to deal with what I leave them.

divecchia

No coin collection inheritance for me, significant or otherwise.

Donato

FlyingAl

I inherited an 1887 S $5 from my grandmother, it now resides in a NGC XF Details slab where I plan to keep it until I die.

TxCollector

Nothing major for me. A few common gold pieces, random date Morgans and about 10 hk trade dollars. Still nice to have. All the Morgans had silver polish taken to them by my mom when I was young…

3stars

@winesteven said:
Nope. However, while my adult kids (49 and 51) in theory one day could answer yes (if I don’t make it eight more years until 80, at which point I’ll arrange to sell it myself), like most others, they have absolutely no passion or interest. As such, they’ll follow my detailed written instructions on whom to contact, and what terms should be negotiated.

Hey @hfjacinto , I seem to recall you asking if I’m interested in adopting? lol.

Steve

You assume they will follow your written directions. None of us can be certain what happens after we pass.

winesteven

While in theory you are correct, and I'm sure with heirs of some collectors shenanigans have occurred, I have 100% confidence that in my situation, my full instructions will indeed be followed.

Steve

oldabeintx

An Australian crown brought back in WWII from my dad, that's it. (Slabbed and tucked away with a note.) Judging by the inherited collections I have looked at as a favor for friends and relatives over the years, it's pretty unusual for a premier collection to have been assembled. I once helped a dealer friend sort through some nice inherited 50's proof sets in their original packaging, that was fun.

Elcontador

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

You're better dying and giving appreciated property to heirs rather than selling it outright due to tax laws with respect to estate taxes. If you inherit such a property, you get its fair market value at date of death. But you'd better make sure you get a bullet-proof appraisal to support such value.

Treashunt

@Elcontador said:

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

You're better dying and giving appreciated property to heirs rather than selling it outright due to tax laws with respect to estate taxes. If you inherit such a property, you get its fair market value at date of death. But you'd better make sure you get a bullet-proof appraisal to support such value.

never mind

WAYNEAS

No coin inheritance for me.
I do plan on passing on my collections with the hope that they, in turn, are passed on.
If they decide to sell it, so be it.
My value comes in the pursuit of obtaining the best coins that I could afford at the time to make my sets competitive amongst our fellow collectors.
Wayne

NeophyteNumismatist

I have a circulated 1922 Peace Dollar that was given to me by my grandpa when I was 9-10. I still have it and love it. It is not premium to the collectors, but I would never sell it - it's premium to me.

The rest of my collection has been built by me, and a few affordable gifts from family members. It certainly would be nice to marvel over a mind blowing coin that was given to me, but there is also satisfaction in building it myself (and having to study and save for the coins along the way).

dunkleosteus430

I was given a few gold coins and a few other nice coins when I was about 7 or 8. I foolishly sold or gave away most of them. My chances for inheriting a larger collection disappeared when my uncle (as a kid) stole my grandpa's coin collection and either sold it or spent it at FV to get some candy and toys.

TheGoonies1985

Coin collecting does not run in my family. Like most here wish it did but better luck next time says my fortune cookie.

AdamL

My dad got me started in collecting and my 2 bothers and I are to divide his collection up 3 ways. He passed in February of 2018 and the collection is still just sitting in the safe deposit box. Mainly because my brothers don't care enough about coins to be bothered with it. I need to get around to at least visiting it at the bank. I may try to bring some or all of it home to look at with my brothers during the holidays.
There is a lot of stuff, and I haven't seen it in 10+ years. I remember the highlights being about 15 MS CC Morgans, all 1883 and 1884. And some gold coins, including at least one Krugerrand a 1oz Gold Buffalo and some smaller pre-33 gold.
The could be some surprises in there though.

EldoEsq

My dad collected alot in the 80's...he had a rental property and some free-flowing cash!

Would definitely not call it premium, but he gave me a Saint, $10 lib, and a couple of $5's. Also a bunch of Morgan's, some nice, alot were cleaned though. He couldn't tell the difference unfortunately! One was an 1893, I sent it to our host, came back cleaned XF details.

He also gave me 2 proof 1986 $50 gold eagles still in the original shipping carton!

semikeycollector

@FlyingAl said:
I inherited an 1887 $5 from my grandmother, it now resides in a NGC XF Details slab where I plan to keep it until I die.

Hi FlyingAl,

If your 1887 $5 is not from San Francisco, then you have a premium coin!

FlyingAl

@semikeycollector said:

@FlyingAl said:
I inherited an 1887 $5 from my grandmother, it now resides in a NGC XF Details slab where I plan to keep it until I die.

Hi FlyingAl,

If your 1887 $5 is not from San Francisco, then you have a premium coin!

Sorry, typo. It’s a San Fran coin.

hfjacinto

Great stories!!!

I recently helped a neighbor go through her fathers collection. We sorted, checked for key dates and separated all. It was almost all common date silver coins. The first sale at a local dealer resulted in a value of $4800. And she still had hundreds if not thousands of silver half dollars to go through.

What was worth the least was the paper. Basically US Notes/Silver Certificates. There was about $200 in paper and the dealer offered her $205, they were all common/circulated. In the set the only thing with a premium was a circulated Hawaii note. The rest of the paper money the dealer will give as change when a purchase was made.

This was the closest to a high value set I ever helped out on. But all though the whole collection was worth over $10000, majority was the melt value of silver coins. Only a small portion had numismatic value. I wouldn’t consider it premium.

TR

My dad left me a bunch of silver coins dated early 1900's from the Philippines he brought back from fighting there in WW2. Nice mementos.

leothelyon

@3stars said:

@winesteven said:
Nope. However, while my adult kids (49 and 51) in theory one day could answer yes (if I don’t make it eight more years until 80, at which point I’ll arrange to sell it myself), like most others, they have absolutely no passion or interest. As such, they’ll follow my detailed written instructions on whom to contact, and what terms should be negotiated.

Hey @hfjacinto , I seem to recall you asking if I’m interested in adopting? lol.

Steve

You assume they will follow your written directions. None of us can be certain what happens after we pass.

We can always threaten to haunt them to the end of their days if they foolishly sell at any price at some B/M!

Leo lol

daltex

@littlebear said:

@PerryHall said:
What are the tax implications of selling a very valuable coin collection compared to your heirs selling your collection as an inheritance?

The advantage of heirs selling the collection is that they receive a "step-up cost basis," which means the cost is the fair market value at the time of death. So, if a coin was purchased in 1962 at a cost of $50 but is worth $2500 at the time of death in 2022, $2500 becomes the "new" cost basis (step-up cost basis). If the estate sell the coin for $2600, the capital gain is $100.

In the same scenario, if the coin is sold before death, the capital gain is $2550 ($2600 minus $50 cost).

"Stepped-up basis is a tax law that applies to estate transfers. When someone inherits investment assets, the IRS resets the asset's original cost basis to its value at the date of the inheritance. The heir then pays capital gains taxes on that basis.Sep 1, 2022"

From IRS Publication 551 (page 9):
Inherited Property
The basis of property inherited from a decedent
is generally one of the following.
1. The FMV of the property at the date of the
individual's death.

Just to add a couple of things to consider: what if some or all of the coins are worth less (nominally, not inflation adjusted) than you paid for them? Does "very valuable" mean you're pushing against the estate tax exemption? If yes to the latter, and possibly the former, go talk to an estate professional.

younique

Found Morgans hidden away while cleaning out the house after my parents passed. Grandma had scotch taped 25 of them into a homemade album as a 25th wedding anniversary card/gift for my parents. Sent one off to Leroy Van Allen who verified the suspected VAM. Tremendously valuable as a keepsake.

Walkerfan

I was given all of my dad's silver that he had been collecting since the '60s. Roosevelts, Washingtons, Franklins, Kennedys and, of course, Walkers! Some, I saved in Whitman folders while others I sold for their melt value, so that I could buy better stuff. Very exciting to a 9-year-old! It felt like a HUGE treasure to me at that time! I, totally, credit my father for me being where I am today!

Jzyskowski1

Wanted to revisit this thread to add while I didn’t inherit a large fascinating collection by God my son and grandson are going to 😁
I add at a furious rate hope to continue at this clip for many more years.
They both have access to the day to day business of grandpa’s hobby and collections of their own.
Seeing the amount of work involved has hopefully been enough to leave a lasting impression. I’m putting together a rather detailed inventory and valuation estimates ( based on cost + 10%). Hand written and carefully entered into the book.
As always, what will be , will be. I can only do so much but education and hands on participation seems to be helping 😁🙀😻😸🦫

MaineJim

I inherited a roll of bicentennial quarters from my father - they were all about uncirculated which he put in his safety deposit box which we found when we opened it. I kept them for a while then gave them to my son who promptly spent them. No harm - they were worth face value and the sentiment didn't last long for him.

Jim

hfjacinto

@Jzyskowski1

I have 2 kids my oldest want my meteorite collection and telescopes while my youngest wants my coin/currency collection. So both will get nice collections but I’m only 53 so hopefully it will be a few years. Like @winesteven what happens between now and then may change but it’s nice that both are interested in some things that I’m also interested in.

ARCO

My grandfather and father collected the common silver dimes, quarters and Morgans. I inherited a bunch of wheaties, Mercury dimes and a few Morgan dollars.

My children on the other hand are going to get a Grade A collection worth a couple of hundred thousand.

I felt it was time to break the cycle in my family tree of only passing on junkie coins. Well, somebody had to be the pioneer in the family, right?

rec78

Some were premium, but most were not. My dad got most of his coins from circulation, including a pile of key date Morgan's and CC's mints and a few 1889-CC's and 1893-S's (you could find them in 1962!).

MapsOnFire

My mother's Aunt Louise gave me a Vermot half dollar, acquired new when her family had a summer cabin in that state. Also a gem! 1921 D half dollar - she didn't know where that came from; and a very nice 1800 silver dollar, never cleaned. She had also saved a dozen part-red1909 S VDB cents from irculation when they were new.. i dont know where they went. Her brother had been president of the California Bankers Association in the 1940s. He gave me seven Morgans on my 7th birthday. In the 1970s I showed him a few national bank notes including a couple of serial #1 notes from San Francisco banks. He told me they had no value. And my grandmother gave me a small box of coins that had come down through her family. I remember a nice 1830 dime.

WCC

Not me, but someone should inherit mine.

dcarr

My Dad was not a serious coin collector. But he would occasionally buy a coin if I advised him he should. Or sometimes when I needed to sell a coin due to finances, he would buy it from me. So when the estate was settled, I got several coins that I had actually picked out myself previously. My two brothers received a cash equivalent. Here are some highlights:

hfjacinto

@dcarr , nice coins.

I only have a few ASE from my dad. For example the 1997.

I also kept a few of the Silver Certificates he had.

matt_dac

Nothing here either….