Bit of a Creepy Legal Question...

[BobC]

You're actually better off talking to a CPA that does estate planning and has actually prepared federal gift tax and federal estate tax returns. I don't remember how many times I've worked with clients and attorneys to do estate planning and such, and ended up having to keep correcting the attorneys and have them change/re-write estate planning documents or re-think what they were proposing to our mutual clients because what they suggested wouldn't work, or wasn't what our clients wanted.

Go back and re-read Smarti's post. He's covered all the basics and high points and is right on the money. His comment about the fact that gifting your collection instead of letting your heirs inherit it makes a huge difference to your family in that if you gift your cards to them, they get your carryover tax basis in the collection. If you instead let them inherit the collection, under current law they get a stepped-up tax basis equal to the FMV of the collection as of the day you pass away. That can be a huge tax difference to them.

The one big thing I would immediately advise is to not just look at your collection by itself. You really need to look at ALL your assets, marital status, family situation, and so on, to best determine the most appropriate way to handle everything overall, and to get the most favorable tax outcome that you want, as well as taking care of your family. Your collection is just a part of your overall estate. To begin even doing this will require some up-front homework on your part, namely sitting down and coming up with a list of everything you have, along with approximate current FMVs for everything.

I could keep going, but I get crap from some people on the forum for writing too much when trying to give thorough, accurate, and complete as possible tax related responses and advice. If you want to talk further, PM me. Would be much better/easier doing this off forum.

[Michael B]

Originally Posted by BobC

You're actually better off talking to a CPA that does estate planning and has actually prepared federal gift tax and federal estate tax returns. I don't remember how many times I've worked with clients and attorneys to do estate planning and such, and ended up having to keep correcting the attorneys and have them change/re-write estate planning documents or re-think what they were proposing to our mutual clients because what they suggested wouldn't work, or wasn't what our clients wanted.

Go back and re-read Smarti's post. He's covered all the basics and high points and is right on the money. His comment about the fact that gifting your collection instead of letting your heirs inherit it makes a huge difference to your family in that if you gift your cards to them, they get your carryover tax basis in the collection. If you instead let them inherit the collection, under current law they get a stepped-up tax basis equal to the FMV of the collection as of the day you pass away. That can be a huge tax difference to them.

The one big thing I would immediately advise is to not just look at your collection by itself. You really need to look at ALL your assets, marital status, family situation, and so on, to best determine the most appropriate way to handle everything overall, and to get the most favorable tax outcome that you want, as well as taking care of your family. Your collection is just a part of your overall estate. To begin even doing this will require some up-front homework on your part, namely sitting down and coming up with a list of everything you have, along with approximate current FMVs for everything.

I could keep going, but I get crap from some people on the forum for writing too much when trying to give thorough, accurate, and complete as possible tax related responses and advice. If you want to talk further, PM me. Would be much better/easier doing this off forum.

Bob,

I will agree with you. I work with so many attorneys and only one CPA that I automatically think of the barristers first.

As for those who may complain about the length of your missives I would say they need either a bran muffin or a hammer and directions to the beach (so they can pound sand). It reminds me of something an attorney co-worker told me when I was moving from Mass. to work in D.C. Speaking of other people in the courthouse he said "Some people really like you and others think you are a miserable S.O.B. but they all respect you." I would rather be respected than liked any day.

[clydepepper]

Darren - I've been dealing with issues for a couple of years now and, last year, took advantage of a seller's market and greatly reduced my collection.

I figured this would be better in my case and I have no loved ones with even the slightest appreciation of such items.

I took the tax hit this year, but, such is life.

Good Luck AND Better Health!



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[JollyElm]

Guys (Whoops! Don't want to risk being 'canceled' for using such an inflammatory word. Frickin' woke morons!! ), thank you for taking the time to offer some nice input into this particular conundrum. Certainly, a lot of other members will find this information quite useful to themselves and their situations, too, so your insights are greatly appreciated. Got a good starting point now!

¡Viva Cardboard!

[Directly]

A bidder buys a box full of odds and ends at a estate sale. Gets home starts looking into the box. There were a few old Coffee cans inside. He opens them and discovers inside one can was stuffed with $30,000 dollars cash!--what should he do.

1) take the cash back to the auctioneer and tell him what he found?

2) Tell his spouse if applicable?

3) consult his tax accountant

4) keep the find to himself