Creating a collection can be an exciting hobby. Depending on what you collect, your collection could have significant value, or it might simply be valuable to you because you enjoy it.
As you consider your estate plan, you may wonder how to include your collection. While it may have substantial sentimental value to you, your beneficiaries may not have the same appreciation.
Here’s what you should consider when deciding how to handle your collection in your estate plan.
Estimate true interest
It can be fun to share your hobby and collection with your loved ones. When your beneficiaries show interests in what is important to you, it can be exciting to find a new piece together to add to your collection; especially with the knowledge that they could enjoy it as part of their own collection someday.
When you think about your estate plan, consider giving your collection to someone more likely to appreciate the journey of continuing to add to the collection.
Understand the value
It may seem shallow, but someone who does not share the same hobby and appreciation as you, might first consider how much your collectibles are worth.
You may have a running total in your head of how much you spent on your collection over the years. For better or worse, this amount may not be what the items are actually worth. Before you decide how your collection fits into your estate plan, you should obtain an appraisal from someone familiar with the pieces.