Aug 1, 2006 12:00 PM

By Anne Field, journalist, Pelham, N.Y.

Recently, a wealthy art collector died, leaving a $20 million estate of paintings, drawings, sculptures and other pieces. The works belonged to a foundation established by the collector; the proceeds would go to the foundation. Other than that, there were no stipulations for how to sell the collection. So how should it be done? To answer that question, the executor, who was not an art cognoscenti, called an art advisory service that had worked with the collector when she was alive. The family decided that the best strategy was to go the estate auction route, because it offered considerably more public accountability than selling the works privately. And, because the art market for all the areas in question was sizzling, moving quickly was the order of the day.

With their eye on the clock, the advisory firm, working with the estate's executor (who conferred with the trustees), invited Christie's and Sotheby's to pay a visit to the art collector's home. Within a few weeks, the major auction houses each dispatched four or five specialized art experts to make their assessments. Two weeks later, each auction house presented its proposal, a description taking about an hour and a half detailing the appraisals and estimates for how much to sell each work, as well as marketing plans. The advisory firm made its recommendation; the executor and trustees made their choice; and a contract was signed.

Topics of Interest

Estate Tax	Donor Advised Funds
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Private Foundations	Life Insurance
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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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