Multi-generational planning for your collection

[CSdot]

Has anyone here given any thought to multi-generational planning for your coin collection?

 

Options seem to be:

 

(1) do no estate planning beyond a simple will, and let your heirs figure it out;

(2) give the collection to your heirs while still living with instructions on how you think they should best preserve the collection for the future;

(3) prepare a will memorandum giving the collection to your children;

(4) set up a revocable trust now and make your kids the beneficiaries allowing them to take clear title when you die, or at some date in the future (maybe 50 years);

(5) create an irrevocable family trust and actively seek participation with your kids in adding to the collection;

(6) set up a pour over trust in your will for your collection;

(7) something else?

 

I do think leaving a list with details about each coin (description, when and where acquired, and price), with instructions on how you think they should best preserve the collection for the future is highly recommended.

[Mr.Mcknowitall]

7) Trust Loan to a Museum, with return provisions....if nobody in the immediate family interested in continuing for future family generation planning, and just want now. This will allow a future generation that may show genuine interest the ability to do continue.

[DaveG]

How about:

 

Trying to get your heirs interested in numismatics.

 

If they do get interested, then you know they'll take care of the collection. If they don't, you'll know to either sell before you go or leave detailed instructions for after you're gone.

[Kurtdog]

I'm actually doing your #2, although not necessarily limited to my heirs-at-law. I've actually been doing it for quite some time. I refer to it as, "measuring off." It's inter-vivos gifting, really. Oh my, there's a big word for such a little brain.

[CSdot]

The kids are interested, but they are young (9, 12 and 14). The idea of a trust seems attractive because it gives some structure to them working together for the common goal.

[okbustchaser]

7. other...I'm taking it to the crematorium with me.

[comicdonna]

How about:

 

Trying to get your heirs interested in numismatics.

 

If they do get interested, then you know they'll take care of the collection. If they don't, you'll know to either sell before you go or leave detailed instructions for after you're gone.

[Matt_dac]

If you're concerned about the inevitable consternation that comes after a death among living heirs I suggest a will naming who gets what coins. Be specific...

[Raisethis2]

I think unless there's been a clear interest displayed well before hand by a family member the best course is a detailed list of what's what, it's approximate value and a recommendation of where to consign it and at what percentage is the proper course.

 

Most people want the cash and ensuring they get the best price is doing them a service.

 

Someone new can appreciate it after you're kaput.

[mailman1959]

If I live long enough to retire, exactly 5 years from today. No one will have to worry about my coins 'cause they're getting sold. If I don't make it, there's a list with my cost. Told my son to try to get 80% of that for starters. MAILMAN

[RWB]

Historically, I doubt if many collectors plan -- for anything.

[comicdonna]

I believe that has changed quite a bit since the internet. For example, it's threads like this, that make some people think about planning.

[RWB]

I suspect the very few people who read these threads are the tiny exception. Every few week I get inquiries from "a friend of a friend of a friend's cousin" to check a "huge" collection in someone's estate. They are usually the same old common stuff of limited value - and I have never seen much more than inventories and purchase prices. No indicators of a plan for postmortem distribution.

 

Maybe the dealers on here have different experiences....I sure hope so.

[Catbert]

There is a sentimental and even romantic notion of passing my collection on to my children. However, the cold reality is that there isn't enough interest shown by them to warrant such a consideration. So, I think the best option is to leave enough information to assist them if I die suddenly. Assuming no premature death, then my plan is to sell it when the timing is right.

[RWB]

"...my plan is to sell it when the timing is right."

 

Good idea. Think of it as a kind a enjoyable savings account. Use the money to pay for college or help the kids with a house down payment, or job training, or just leave the money to your family.

 

We get pleasure from acquiring and owning the coins. Others will find their pleasures in other things and your coin money might help that along.

[Nutmeg Coin]

Many collections do not get anywhere near top dollar as the original collector intended for them to be passed down to the next generation that, opening his/her SDB would examine the collection with tears of gratitude flowing down their cheeks. In reality the next generation looks upon collectible coins as interesting but not worth big buck$. So often times they go down to the pop and mom coin shop for an offer, and $20K sounds like a lot of money for those old tarnished coins and faded rare currency. Too bad, but that is the way the cookie crumbles from what I have heard, and of course those benefiting greatly in buying such "deals" have no incentive to share just how well they made out. The easiest collection to value and liquidate probably remains easily sold US eagle gold and silver coins and semi-numismatics, properly valued and sold to the top buyers. It is kind of tragic how some collectors have carefully saved collections hoping they would be really appreciated by the next generation, only to have a stroke, etc.. and to be mentally incapable of having their intentions honored, it should be written into wills with fellow collectors acting as safeguards in case of need to sell. Good coin clubs can help members with that.

[CSdot]

I am still under 45, with young children who still enjoy the hobby. I have to admit however that I am disappointed in the defeatist attitude. Why collect if you believe there is little chance you or your heirs will ever see any benefit from your collection?

[Catbert]

I am still under 45, with young children who still enjoy the hobby. I have to admit however that I am disappointed in the defeatist attitude. Why collect if you believe there is little chance you or your heirs will ever see any benefit from your collection?

 

Well, you planted the seed early. I returned to the childhood hobby around 8 years ago and my kids were teenagers and distracted by other interests. Can't make them appreciate my passion and that's okay.

 

So to answer your question about why collect then......well, simply because it makes me happy. I don't feel defeated!

[World Colonial]

7) Trust Loan to a Museum, with return provisions....if nobody in the immediate family interested in continuing for future family generation planning, and just want now. This will allow a future generation that may show genuine interest the ability to do continue.

 

In isolation yes but generically, no. Most collectors lack one which is actually worth exhibiting.

 

As an outright gift, I am also dubious that most (if any) would make good use of it. I don't have a very high opinion of the stewardship track records of non-profits generally.

[World Colonial]

How about:

 

Trying to get your heirs interested in numismatics.

 

If they do get interested, then you know they'll take care of the collection. If they don't, you'll know to either sell before you go or leave detailed instructions for after you're gone.

 

This is the best advice.

 

I have left some instructions, such as an inventory sheet with cost and current value estimates plus some notes on some of the coins. I have also written a document to help them better understand the hobby and its economic aspects.

 

I have listed which coins I think should be kept and which sold from a financial aspect, but ultimately I don't believe I will find anyone who I both will want to do it and that I want to give it to.