“Why do you get the antique Lalique wineglasses? You don’t know a Burgundy from a Bordeaux.”

“I’m taking the Napoleon III bookcase.”

“Oh no, you’re not. Aunty always said it would look perfect in my living room.”

And on and on.

I am often asked how to protect antiques. That question was posed to me by the nephew in a wealthy family. The nephew had just been appointed executor of his aunt’s estate. He is an attorney, and I saw immediately that he took the appointment very seriously.

The nephew’s aunt is elderly and in good health. She lives in a large stone home stuffed with three generations of antiques and collectibles, which, the nephew said, she did little to protect. Her many items included oyster plates, flow blue china, handguns and long guns from the Revolutionary and Civil Wars. The nephew referred to his aunt’s home as a museum.

Stop the arguing before it begins

I asked about the will and the disposition of the antiques. The aunt had had an unpleasant experience some years past when she gave her siblings and nieces and nephews some of her collection. There were quarrels over who got which antique and dissatisfaction with individual items received. This was too much for the spinster aunt, who hated confrontation. Because of this, she had decided that all her belongings should be converted to cash and the cash given to her family and charities. She wants all her antiques and collectibles auctioned and each of her relatives given the opportunity to buy what they want.

We hired professionals to inventory and value the aunt’s extensive collection. The inventory consisted of digital images, serial numbers, detailed written description. We also had her home wired for security, and a security service hired. All the antiques and collectibles are insured now. The inventory will be checked at least annually by a qualified professional.

This list will help in identifying items stolen or lost. The insurance is expensive but deemed necessary to preserve the estate. I have found that in the case of most families, it is best to convert all estate items to cash to prevent sibling disagreements that last a lifetime.

The action taken in this case happened before WorthPoint. I will encourage the nephew to use WorthPoint’s Estate Services Division when that time comes. Please check out this division services.

– Jim Sturgill is a director of WorthPoint and founding partner of Sturgill & Associates LLP, a DC and Baltimore area CPA firm.

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Estate Planning—Antiques, Collectibles & Greed

Take the case of one of my older friends who had a very valuable Winchester lever-action rifle collection. My friend died 10 years ago at the tender age of 90. He had been acquiring Winchesters since he was in his teens. His collection consisted of all calibers; he even had two “Henrys.”

My friend owned a thriving nursery that sold plants wholesale to the many garden outlets you see along the highway, as well as to box stores, such as Lowe’s and Wal-Mart. I visited him regularly to attend to the nursery’s tax-reporting requirements. Because of my interest in firearm antiques, we discussed his collection and mine very often. I told him his collection was so valuable that he should have it insured. But, he assured me the fireproof, concrete vault where he stored the rifles was sufficient. Then I suggested that he have the collection photographed and categorized by year manufactured, serial number and caliber. He did and gave me a copy.

My friend did not have children, and one of his several nephews was the executor of his estate. My responsibilities were written in my friend’s will and that was to assist the executor file the federal estate-tax return. The nephew pulled together the estate’s assets and had them appraised. He gave me the appraisals so I could file the return. While filling out the various forms, I noticed something was missing—the Winchester collection! I asked the nephew about it, and he told me, “Uncle sold that last year. It’s gone.” I said that was strange as his uncle had promised to offer the Henrys to me first. Looking anxious, the nephew dismissed me. Well, the legal system dismissed the nephew and appointed me executor. Upon prodding from uncles and 28 first cousins, the nephew came up with the Winchester collection minus the Henrys. The court considered the inventory of Winchesters critical.

The inventory of Winchesters is a lesson learned. I am recommending that all my clients who have antiques and collectibles contact WorthPoint to have their valuables identified, categorized and valued.

– Jim Sturgill is a director of WorthPoint and founding partner of Sturgill & Associates LLP, a DC and Baltimore area CPA firm.

Maintain the Value of Your Art, Antiques, or Collectibles Business

Worthology Works Both Ways

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Collecting Can Be Wise Investing

Tax Day: Mileage Pays

More Mileage Cents = More Dollars for Antiques & Collectibles

Antiques Shops Make More Money “Buying Right”

18 Things Worth Knowing about the Business of Antiques and Collectibles

Estate Planning—Where Are the Coin Collectibles?

I had been in the client’s small office several times and noted that a countertop was supported by three 55-gallon barrels. On one occasion, the client was chatty, and I asked him about the barrels. He explained that they had been there since the late ’50s when he “gave up my one-armed bandits.” I stared at him.

He explained that at a fish fry or chicken fry from the 1920s through the 1950s, the service clubs and churches let him bring a horse-drawn flatbed wagon with slot machines attached so gamblers could stand shoulder to shoulder dropping in coins. He told me he had slot machines that played 1 cent or 5 cent or 10 cent or 25 cent and “hog dollars.” He shared the winnings with the sponsor. Again, I asked why the barrels. He stated, “Jim, they are full of coins—been there since the ’50s!”

Hidden treasure

The client and I took the countertop off the barrels, and I thought I was looking at Long John Silver’s treasure. I remember seeing very old 50-cent pieces, Buffalo 5-cent pieces, old dimes, silver dollars with 1800 dates. I was shocked, and he belly-laughed at me for five minutes. Each barrel was so heavy that I could not even budge it. I told him he should put the old coins in the bank or do something to protect them. He was not worried and would get around to it soon. We never talked about the coins again because that was his choice.

My client died three years later. I assumed he had taken care of the coins properly. The only professional responsibility I had with his estate was to prepare its income-tax return. In doing so, I noted that the coins were not on the probate-court documents. When I inquired about the coins, I was informed “Dad had a gambling problem and had converted the coins to paper money and lost it at the track.” At that point, I was dismissed as the accountant. I do know that my old client did not gamble unless he held “house odds,” and he told me the “ponies don’t pay.”

Should a similar situation occur today, I have WorthPoint and the Worthologists to consult. Proper identification of antiques of all sorts and reporting their value on estate-tax returns is required by the IRS. Tax evasion is a felony.

—Jim Sturgill is a director of WorthPoint and founding partner of Sturgill & Associates LLP, a DC and Baltimore area CPA firm.

Maintain the Value of Your Art, Antiques, or Collectibles Business

Worthology Works Both Ways

Weak Dollar Crushes Antique Shop

Antiques, Art and Collectibles: Sell or Donate

Collecting Can Be Wise Investing

Tax Day: Mileage Pays

More Mileage Cents = More Dollars for Antiques & Collectibles

Antiques Shops Make More Money “Buying Right”

18 Things Worth Knowing about the Business of Antiques and Collectibles”