How to Donate Art
I get a lot of inquiries from clients with art or collectibles that they want to donate – sometimes during life and sometimes as part of an estate plan. These long-term collectors often believe a public gallery, museum or educational institution is the best “one stop” destination for their collection. Another motivation is a donation is perceived to be easier than a sale, which isn’t always correct.
The Art Collector and the Tax Deal
Douglas Duncan was a pioneering Canadian art dealer and ambitiously hapless businessman. Known as the dealer and artistic executor of artist David B. Milne, he was legendary for his unopened mail, uncashed cheques and, yes, of course, failure to write a will.
Best Laid Plans: The Sculpture Fund
Frances Loring (1887–1968) and Florence Wyle (1881–1968) were Canadian sculptors and life partners. In 1963 they prepared mirror wills to “assist and encourage Canadian Sculpture” through a testamentary trust, The Sculpture Fund.
Estate Donations of Art
Fine art is an asset class that has been growing in importance among the affluent and is beginning to be a significant part of certain estate plans. One estimate pegged the international art market at €51 billion in 2014, and Canada has seen record prices at auction.
Art and Fair Market Value
Fall art auction week in Toronto is just past. The biggest is run by Heffel Fine Art Auction. The results for the two Heffel auctions illustrate the challenge of determining fair market value in art. The auction catalogue listed a number of estates and charitable foundation as consignors. Clearly art valuation issues affect estate planning.