Life Is Short, Art Is Long: Maximizing Estate Planning Strategies for Collectors of Art, Antiques and Collectibles

BY MICHAEL HAYES

by Michael Mendelsohn
Wealth Management Press, 2006, 421 pp.

Accountant, financial planner and outsider art collector Michael Mendelsohn has composed a pleasant read with a purpose. His premise: Most people collect something, and over time many of those collections come to represent important client wealth that should be included in the estate planning process. While capable financial advisers will dot every i and cross every t, many overlook how best to handle the transfer of collectibles. The problem is exacerbated when heirs—to evade taxes—quietly whisk art out of collector clients’ homes.

Mendelsohn weaves together serious tips and engaging anecdotes about how wooing his wife led to their shared obsession with collecting. Practical estate planning details include instruction about inventorying a collection, having it properly appraised, planning for its disposition and information about how a client can:

Avoid losing 70% of the value of a collection.

Work with an advisory team.

Fulfill philanthropic intentions.

Use a collection to create liquidity.

Employ sophisticated planning techniques.

Never assume, he says: Ask your clients what they collect, and then take it from there.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.