Estate Planning

Plan for the future

Estate Planning

For numismatists, a collection of coins, medals, tokens, and other numismatic items is far more than a mere asset—it’s a cherished legacy, often carrying deep sentimental value akin to family heirlooms. These items, acquired through years of patient searching, evoke warm memories and bring immense joy. However, their significance extends beyond emotion, as they can represent a substantial portion of a collector’s estate. Without proper estate planning, such as a will or trust, these treasured collections risk being liquidated upon the collector’s death in a process called intestacy.

In intestacy, property is valued solely at market rates and distributed to legal heirs (typically spouses, children, or other relatives) based on state laws, often requiring the sale of collectibles to ensure equitable division. This can lead to hasty sales in unfavorable markets by administrators unfamiliar with numismatic nuances, potentially diminishing the collection’s value and disregarding the collector’s wishes.

Estate planning, encompassing decisions about wills, trusts, and tax minimization, is critical to preserving a collection’s integrity. A simple will grants collectors the freedom to designate specific beneficiaries for their numismatic items, ensuring cherished pieces remain intact or are distributed as intended without forced liquidation. For example, in a scenario where a New York collector with $200,000 in liquid assets and $300,000 in numismatic items dies intestate, the estate may face significant administrative costs, appraisals, and potential liquidation to evenly distribute assets among heirs, reducing the collection’s value. A will could prevent this by directing specific items to chosen heirs and allocating appraisal costs. Alternatively, a living trust offers another option by transferring property to a trustee during the collector’s lifetime, avoiding probate and enhancing privacy. However, trusts come with drawbacks, including setup and maintenance costs, annual tax filings, and trustee fees, which may outweigh probate savings. Additionally, trusts require transferring all assets, which may be impractical, and overlooked assets could still trigger intestacy proceedings.

Ultimately, whether through a will or a living trust, proactive estate planning empowers collectors to protect their numismatic legacy. A will offers simplicity and flexibility, while a trust provides privacy and probate avoidance but demands careful consideration of costs and asset control. By planning ahead, collectors can ensure their collections are passed on as intended, minimizing financial and emotional burdens for their heirs.