How have/do high value collections (say $100K+) pass to heirs upon the death of the collector/owner?

SanctionII

Do these types of collections pass to heirs under the radar screen outside of the knowledge of tax authorities and other interested thrid parties (i.e. successors trustees, personal representatives, attorneys and accountants) very often; or are these types of collections usually so well known by interested third parties that they are pass to the heirs in the full light of day on the radar screen [so that the tax man will get his due].

tradedollarnut

I hear a few 1933 $20's passed on down...

Longacre

Good question and I don't know the specifics of particular situations, but I would assume that the more prominent collections are taken into account in estate planning. It is possible that smaller collections don't get properly reported, even if the overall estate slightly exceeds the current limitations.

Sotty

I think most collectables are passed on on the QT. I know when I sell, there is
no note to the tax people. The amount I receive usually is around the same or even less than
I paid.

jdillane

unless it is a large estate, the coins would likely pass without any federal tax burden. And, the coins get a stepped up basis which is great for the heirs. Only subsequent appreciation is taxable. Hopefully, this won't be taken away. The estate tax exemption continues to increase until 2010 when it is unlimited all year. Then, it expires. There have been attempts to wrangle some sort of replacement exemption but with the teetering economy, its a bit of a political hot potato.

Julian

very quietly

Bajajim

what collection?

Nic

Use a trust. Trust the trustees. K

SanctionII

A friend of mine (my law school roomate) and I were talking yesterday. He said the estate tax exemption for 2006-2008 is $2 million, goes up to $3.5 million in 2009 and in 2010 there is no limit. He said that absent changes in the law, he could invision heirs valiently taking steps to insure their loved one keeps up the fight for life beyond 12-31-2008, then beyond 12-31-2009; only to then have a change of heart beginning on 1-1-2010 and continuing until 12-31-2010 at midnight deciding that after such a valient fight for life it is time to let their loved one go (with a push, if necessary).

I am sure that greed will manifest itself in smoe strange tales regarding the life and death of elderly loved ones come 2009 and 2010, unless Congress and the next president change the law.

droopyd

I think that many large collections pass "under the radar" if the collector is not a "majah playah."

Barry

<< <i>I hear a few 1933 $20's passed on down... >>


So how many do you have?

MoneyLA

I'm not sure what your question is or what your concern is?

Inheritance, what you receive, is generally tax free to the recipient.

Estate taxes are paid by the deceased. No deceased person has ever complained about the taxes their estate has paid.

For a collection to be taxable to the estate, certain threshholds (size of the estate) must be passed.

if this didnt answer your question, please advise.

by the way, the best way to avoid estate taxes is not to die.

RichieURich

<< <i>I hear a few 1933 $20's passed on down... >>



Good one, TDN!

RYK

Well, do you sell the coins before you die and get taken to the cleaners paying tax on the profit or have your heirs sell them after you die and get taken to the cleaners by the coin industry? Decisions, decisions,

oreville

I am hopeful that Congress will agree on a $5 million exemption after 2010 and then indexed to inflation.

But I am convinced that capital gains rates will rise to a maximum of 20-22%.

Coins and collectibles will remain at 28% maximum rate.

The scary part is that AFTER 2009 estates will NOT get the benefit of a stepped up basis UNDER THE LAW!!

I DO PREDICT THAT CONGRESS DOES NOT INTEND TO REINSTATE THE STEPPED BASIS ON ESTATES TO BENEFICIARIES WHEN THERE IS NO ESTATE TAX INVOLVED SUCH AS ESTATES PASSING TO SPOUSES.

Geez, this is a serious problem for estate planning. Bigger than the exemption amount going up and down like a yo-yo.

fuzzball

<< <i>I am sure that greed will manifest itself in smoe strange tales regarding the life and death of elderly loved ones come 2009 and 2010, unless Congress and the next president change the law. >>



When I heard that the tax exemption was unlimited in 2010 and then gone in 2011, I was thinking the exact same thing.

Near the end of 2009, you will see a lot of family members saying "do everything you can doctor."

During 2010, you will see a lot of "they lived a long and good life, now pull the plug."

-Fuzz

Bear

I am leaving my cullinary estate to the Forum.

2600 jelly donuts to be divided equally,

upon the inhabitants thereof. If there should

be an odd donut left over, everyone take a bite.

roadrunner

A small group of non-monetized 1933 $20 Saints would only have a tax value of gold scrap. Only several thousand dollars. How could the govt argue otherwise without legalizing them in some way?
So towards estate tax planning...figure a group of 10 around $8500.
Govt can have it both ways.

roadrunner

BAJJERFAN

Unless I expire unexpectedly it won't be an issue.

fishcooker

I'd say coins are no different from other valuables: they evaporate from the safe deposit box, and everyone is left wondering what happened to them.