Michael Mendelsohn, art collector and author of the book Life is Short, Art is Long, declares "Top Ten" artful mistakes:
1. Failure to use a team approach when planning for your art
assets
2. Failure to recognize if you are a collector or an accumulator of
common objects… and misunderstanding the difference
3. Failure to understand the art headlines in the press;
- “Times could not have been worse for Sotheby’s and Christie’s”, “No
super-rich collectors died this winter”
- “A Colossal Private Sale by the Heirs of a Dealer”
- “An Art Donor Opts to Hold On to His Collection”
- “McARTney Art Wars”
- “New York Public Library to Sell Artworks to Raise Funds”
- “For Sale: Our Permanent Collection”
- “Important Works from MOMA Collection Expected to Highlight May
4th Sale”
- “Spielberg and the Case of the Stolen Rockwell”
- “Lawsuit Ended Arbus Auction”
- “Astor ‘Con’ Artist”
4. Assuming you have proper documentation, including cost basis,
proper title, provenance and current opinion of valuation
5. Failure to take advantage of current tax laws which allow you to
reduce current income tax, eliminate capital gains and estate
taxation on your art assets
6. Failure to understand the effect a large art inheritance will
have on children and future generations…avoiding the
family “art war”
7. Assuming your kids want your stuff…and other delusionary
tales. Misplaced trust in conventional wisdom; “My kids will
sort it out” or how the value of your art assets may be
diminished by 60-80% and the failure to discuss the
methods of protecting a valuable collection from the IRS
8. Confusing Estate Planning with Art Succession Planning,
and not taking into account how to help your favorite
charities and creating a “family art legacy”
9. Failure to understand the “downsides” of not developing an
art succession plan, both lifetime and postmortem.
Avoiding the “empty hook” estate plan - and future family
tax woes
10. Failure to leverage/arbitrage your art holdings for the
benefit of your favorite charities as well as develop a plan
to protect this asset from creditor’s claims
Michael Mendelsohn
President
www.BriddgeArtStrategies.com
1. Failure to use a team approach when planning for your art
assets
2. Failure to recognize if you are a collector or an accumulator of
common objects… and misunderstanding the difference
3. Failure to understand the art headlines in the press;
- “Times could not have been worse for Sotheby’s and Christie’s”, “No
super-rich collectors died this winter”
- “A Colossal Private Sale by the Heirs of a Dealer”
- “An Art Donor Opts to Hold On to His Collection”
- “McARTney Art Wars”
- “New York Public Library to Sell Artworks to Raise Funds”
- “For Sale: Our Permanent Collection”
- “Important Works from MOMA Collection Expected to Highlight May
4th Sale”
- “Spielberg and the Case of the Stolen Rockwell”
- “Lawsuit Ended Arbus Auction”
- “Astor ‘Con’ Artist”
4. Assuming you have proper documentation, including cost basis,
proper title, provenance and current opinion of valuation
5. Failure to take advantage of current tax laws which allow you to
reduce current income tax, eliminate capital gains and estate
taxation on your art assets
6. Failure to understand the effect a large art inheritance will
have on children and future generations…avoiding the
family “art war”
7. Assuming your kids want your stuff…and other delusionary
tales. Misplaced trust in conventional wisdom; “My kids will
sort it out” or how the value of your art assets may be
diminished by 60-80% and the failure to discuss the
methods of protecting a valuable collection from the IRS
8. Confusing Estate Planning with Art Succession Planning,
and not taking into account how to help your favorite
charities and creating a “family art legacy”
9. Failure to understand the “downsides” of not developing an
art succession plan, both lifetime and postmortem.
Avoiding the “empty hook” estate plan - and future family
tax woes
10. Failure to leverage/arbitrage your art holdings for the
benefit of your favorite charities as well as develop a plan
to protect this asset from creditor’s claims
Michael Mendelsohn
President
www.BriddgeArtStrategies.com
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