Mike, if a fellow stored 5 coins, rare coins, in a safe at his home, and if he had them listed on a schedule for an insurance policy, and they were on the schedule for 8 years, and then he died.... when his estate was probated those 5 coins should appear in his estate, subject to inheritance tax and maybe an estate tax. If the coins aren't there, then the presumption would be that he sold them, because if they had been stolen he'd have make a claim. If they were sold, then tax records from one of those 8 years would show the sale, and the ordinary income from the sale. And if that income wasn't there, then the IRS might think that the estate should now pay what the tax would have been, and maybe a penalty. Something for a fellow to think about when scheduling stuff on a policy.
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