[WSBAPT] Artistic Assets

Thu Jan 26 11:26:03 PST 2017

Call me.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Thursday, January 26, 2017 10:11 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Artistic Assets

I am pleased to announce that I will be speaking in an upcoming Strafford live webinar, "Tax and Estate Planning for Art Collectors<http://click.spbcle.com/link.cfm?r=HNK5RddTzbyqB0zmWczYiQ~~&pe=nY8LI1mwCE4UPHkrykht_VaoEAYKnNq-SkRf0mktb8gG0poaF5qu97KYxiBvHq-e>" scheduled for Tuesday, February 21, 1:00pm-2:30pm EST.

Most significant estates contain valuable artwork or collector’s items. These assets present myriad specific challenges, from the perspective of both estate and income tax planning. Estate counsel need to grasp the unique tax and investment issues presented by art can collectibles as part of designing an estate plan for clients with those assets.

Art and collectible items are among the more difficult assets to value for estate purposes. The IRS has an audit unit dedicated to valuation of artwork, and the standards the Service applies in challenging valuations continue to evolve. Valuation is a critical factor in determining a disposition strategy for an art collection, and estate planners must understand the specific challenges in deciding how to dispose of these assets.

Part of what makes art and other collectibles different from other assets is the personal attachment that many collectors have toward their acquired items. Unlike other financial investments, beneficiaries may not wish to take artwork as part of an inheritance. Planners should understand disposition strategies such as 1031 exchanges, and post-mortem sale considerations in structuring a plan to serve clients with art and collectible items.

Our panel will provide estate planners with a comprehensive guide to the estate and income tax planning issues specific to valuable artwork and collectible items within an estate portfolio. The panel will discuss the critical questions of verifying title, documenting valuation, and dealing with fractional ownership. The webinar will offer guidance on structuring disposition plans under various scenarios, both inter vivos and testamentary, to balance income and estate tax considerations with clients’ passion about their collections.

We will review these and other key issues:

  *   What are the unique characteristics of art and collectible items from the collector’s standpoint?
  *   Valuation considerations for artwork
  *   Structuring Section 1031 exchanges involving collectible items
  *   Charitable planning for collectors in post-mortem disposition transactions and structures

After our presentations, we will engage in a live question and answer session with participants so we can answer your questions about these important issues directly.

I hope you'll join us.

For more information or to register ><http://click.spbcle.com/link.cfm?r=HNK5RddTzbyqB0zmWczYiQ~~&pe=fjcF3DL_jRifYzK8ZFSDEdiQv-l37Ilt0kmJLLRdp052jBa3ee7Awn7S7pfiMOB0>

Or call 1-800-926-7926 ext. 10
Ask for Tax and Estate Planning for Art Collectors on 2/21/2017
Mention code: D86XK2-U9ODQ2

Sincerely,

K. Eli Akhavan, Tax and Estate Planning for Art Collectors
Akhavan Law Group, LLP
New York
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Follow Strafford<http://click.spbcle.com/link.cfm?r=HNK5RddTzbyqB0zmWczYiQ~~&pe=Z4NUF4mE3r4L9DSpMaLHonSJ1-UNpbeYCFWn62DD5f06DzPnh6FatvLNsYK9o1YQ>

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Forward this<http://click.spbcle.com/link.cfm?r=HNK5RddTzbyqB0zmWczYiQ~~&pe=Fl_x9PLJWObw1n_cVet2ghtlWukHwB6pu6f1kNSsomPjuXQH3tJw5eAT55Jicd9b>

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com<mailto:Mike at winslegal.com>

This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marilyn J Kliman Law
Sent: Wednesday, January 25, 2017 2:06 PM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Artistic Assets

I have the same understanding, Cyrus. Thx
And thanks everyone – on and off listserve.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Cyrus Field
Sent: Wednesday, January 25, 2017 12:41 PM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Artistic Assets

Hi Marilyn- Slightly off topic, but beware of transfers of artwork pursuant to a memorandum regarding tangible personal property referenced in a Will/Trust under Wa law. I believe that option only transfers the physical artwork itself and not any underlying “intangible rights” in the works (e.g. copyright interest). Things can get messy when those rights are severed. If you want the intangible rights to pass with the physical, then it needs to be spelled out in the Will/Trust itself. At least that is my understanding of the law FWIW. Good luck, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)
phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Marilyn J Kliman Law
Sent: Wednesday, January 25, 2017 10:54 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Artistic Assets

Hi John –

Thanks for the response. This is niggling at me because of estate tax – he’s pretty much just curious – but I’m hoping to put more behind my advice to him than just my gut!

I’m wondering about the interplay between estate planning considerations for him and some direction to give his daughter when the time comes to settle his estate.  IE: Is it better to get a professional valuation now or then?

Additionally, I’m not sure how pressing an issue this is from a practical standpoint. His work has been used by the likes of National Geographic, National Parks Service, and in several nature books, but I don’t think we’re talking dollar value of Ansel Adams here…..

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: Tuesday, January 24, 2017 5:24 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Artistic Assets

Hi Marilyn,
What is the appraisal's purpose? Is he concerned about estate tax? Does he want to start gifting, either charitable or not? Or is he just curious?
He will need a qualified appraisal if he wants to use the values for tax purposes, but bear in mind that values could change significantly between now and his death, depending on his age and health. Also, it is unlikely that he can get a fair market value charitable deduction if he makes charitable donations of his artwork during life.
Feel free to contact me off list if this doesn't make sense.
Hope this helps,
John

John Creahan
Cairn Law, PLLC
206-621-5848
Sent from my phone
________________________________
From: Marilyn J Kliman Law<mailto:marilyn at marilynjklimanlaw.com>
Sent: ‎1/‎24/‎2017 3:44 PM
To: 'WSBA Probate & Trust Listserv'<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Artistic Assets
Folks –

Estate planning client is a retired, published nature photographer.  Any advice as to how to come up with a ballpark assessment on his massive quantity of photos/negatives/transparencies/digital files?  My understanding is that this kind of assessment may be as much of an art as the product itself!

Client was recently divorced and paid ex-spouse a specific amount to keep 100% of the rights, but not sure that would hold up to a challenge.

Thanks for any insights …

Marilyn

Marilyn J. Kliman, Attorney at Law
Marilyn J. Kliman Law, PLLC
510 Bell Street
Edmonds, WA 98020
206.499.0993<tel:206.499.0993>
Marilyn at MarilynJKlimanLaw.com<mailto:Marilyn at MarilynJKlimanLaw.com>
www.MarilynJKlimanLaw.com<http://www.marilynjklimanlaw.com/>
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