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Collectibles are an investment – Protect them

February 29, 2016

Linda Robertson new picWhether you enjoy collecting art deco jewelry, fine wines, abstract art or antique furniture, ignoring the value of these items is a common mistake. Many people don’t view these collectibles as traditional investments and simply enjoy them for their leisure or aesthetic value. As a result, they often insufficiently protect them. Add to this that some estimates suggest more than $40 trillion of wealth will be transferred from the Baby Boomer generation to their children and grandchildren by 2060 and the need to understand the value of your collectibles, protect them and determine your plans for them becomes even more important.

Here are some tips to make sure your collections are protected:

  • Get specialized appraisals and keep them up-to-date: Have that Tiffany lamp appraised the minute you purchase it by someone with expertise in your type of collectible to ensure your appraisal is accurate. Also make sure to keep the appraisal updated. If it’s a very high value item, you may want to have a few appraisals done by different appraisers simultaneously to make certain you get an accurate valuation.
  • Document, Document, Document: While it can be a tedious process, it’s imperative that valuable collectibles be documented, tracked and managed, including photos, receipts and appraisals. Be sure to document any restoration work you have done and if you have something over a long period of time, make sure the values are regularly updated to take into consideration both depreciation and appreciation.
  • Protect Your Collection: Work with an Independent Insurance Agency like Founders that has expertise in complex insurance coverage needs and offers knowledgeable and experienced representatives. You’ll want coverage options that will insure your priceless possessions correctly.   And don’t forget to also factor in loss prevention, from keeping your jewelry in a vault to screening staff and contractors to help prevent theft to ensuring proper climate controls and security for artwork and wine collections.
  • Develop a succession plan strategy early:                                                              Collectibles                        Make sure your classic car collection will be passed down to your son, your grandmother’s jewelry will go to your daughter or your artwork collection will be donated to a museum by developing a succession strategy. Be sure to assemble an experienced and knowledgeable team, including a wealth advisor, estate planner, tax attorney and insurance agent with expertise in protecting valuable collections, to make sure your items are properly protected and factored into your estate planning.

With a little bit of planning, you can have peace of mind that your collections are safe and can be enjoyed by you and your loved ones for years to come.

Linda Robertson

Platinum Accounts Executive

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