If you are creating an estate plan in Texas, you might wonder what you should do about a set of collectibles, whether it is books, dolls, art, coins or something else. There are a number of things you should consider as you decide what will become of these items.
Talk to your family
While you may want to pass them on to your children or grandchildren, you should first ask yourself whether they want them. Discussing your estate plan with your family is a good idea in general because it may help reduce the likelihood of conflict or that they might misunderstand your intentions. Another thing to consider is whether the value of your collection is mostly sentimental or if it has have monetary value. If monetary value matters, make sure you know whether the collection is worth more if it is kept together.
Consider taxes and other laws
Another thing to keep in mind regarding the value is whether it will affect taxes for your heirs. You might want to give parts of the collection each year as a gift, staying below the federal gift tax exclusion. This also gives you the opportunity to see the appreciation of your loved ones. In some cases, you might want to give your children a few pieces from the collection and donate the rest to a museum. There may be additional considerations. For example, if you have a gun collection, you may want to discuss how to handle this with an attorney.
In general, it may be a good idea to work with an attorney to prepare the estate plan for other reasons as well. An attorney may be able to help you determine the best strategies for protecting your assets and reducing tax as well as what vehicles might be best for passing your assets to your family and friends.