Solutions & Services
Case Studies
Art Collector
OBJECTIVE
A second-generation client needed a creative estate planning solution. He wanted the value of his million dollar art collection to pass to his children.
SOLUTION
We established a Charitable Remainder Trust (CRT) and transferred the collection to the trust. The trust then sold the collection tax-free and we invested the proceeds into a diversified stock portfolio. We also created an insurance trust and, with some payments from the CRT, we had our client purchase life insurance to replace the value of the collection payable to a trust established for his heirs.
RESULT
We transitioned a non-producing asset into a growing portfolio, created an income stream for the client, funded his charitable bequests, and moved the full value of his art collection out of his estate, and eventually to his heirs, without paying income or estate taxes on it.