What Will Happen to Your Art When You Die?
Whether you have a carefully curated collection or just paintings bought as souvenirs from foreign travels, without proper planning and realistic expectations, your cherished art might end up in the trash or at a Goodwill shop.
Many of us purchase paintings, ceramics, or sculptures to add beauty to our homes. Others acquire art believing it to be a good investment. The United States represents the largest art market globally, accounting for 42% of global art sales. According to Artsy, while building a collection and home decoration remain key motivations, 38% of collectors surveyed now cite financial value as their primary reason for buying art.
Whatever your motivation, you likely feel strongly about who should inherit your art. Unfortunately, most people’s plans are insufficient.
Common Planning Pitfalls
One client shared how they invited their children to view the artwork in their home. Each child was asked to prioritize which pieces they might want to inherit. The owner then placed the children’s names on the paintings they were to inherit and recorded these choices in a list. While this approach was thoughtful, it was incomplete.
The proper transfer of artwork requires specific reference in a legal document—a gift deed, will, or trust to which the ownership of the art was transferred. Simply putting a name on the back of a frame or drafting an informal memo does not create a legal transfer upon death.
Be Realistic About Your Goals
The first step is to be realistic about your goals. You might hope for:
- Value retention
- Equitable sharing among heirs
- Creating legacies of beauty
However, these goals can be difficult to achieve:
Value concerns: Not all art is easily appraised. Art markets are notoriously fickle—demand for an artist may wane as easily as it might explode. I recall a formerly popular Israeli artist whose works adorned many Jewish homes in the New York tri-state area. Despite the owners’ dreams, decades later, that art has not increased in value. Some pieces will actually decrease in value from their purchase price. Highly appreciated art may be as rare as a winning lottery ticket.
Family dynamics: Your goal may be to share art with family members, hoping they’ll display it and remember you. Yet I’ve witnessed siblings fighting bitterly over a favorite painting or sculpture. Attempts at equity can sometimes create enmity. Conversely, there are families where no one wants that watercolor you bought on an Italian bridge. Too busy to bother with eBay or consignment, your art may end up at Goodwill because someone will use the frame. Art appreciation is subjective—pieces you treasured may hold no interest for your loved ones.
Important Considerations
Remember that you cannot force anyone to inherit your art. Your estate documents should name alternative recipients and include contingency plans to sell or donate unwanted pieces.
If you’ve considered donating to a museum, be warned: museums rarely want individual collections. Those that do accept art donations often prefer to review the art long before the donor’s death. Frequently, donated artwork ends up in storage rather than displayed at the National Gallery. If you believe your artwork is museum-worthy, contact your museum of choice now to discuss a potential bequest.
Investment Considerations
Many collectors are intrigued by art’s investment potential. However, art represents a risky investment as tastes change, supply fluctuates, and economic conditions vary.
With art growing as an investment category, there’s increased need for specialized estate planning strategies. Investors might consider irrevocable trusts to own their art. For those focused on preserving their art’s legacy, updating will or trust documents is essential.
Take action today to ensure your art collection’s future aligns with your intentions.
