Those with art collections would most enjoy their collection being appreciated for years and years after they are gone. One way to make this happen is to give a “fractional interest” in the collection to a charity or museum. By donating the art for 50% of the year while you enjoy it in the other half, you can claim major tax deductions. The catch? The IRS demands that the specified shared artwork be completely gifted no later than ten years after the original agreement is put into place. If you decide not to gift after ten years, the original tax deduction becomes income, which will be taxed accordingly. This method will allow you to have your gift and keep it, too!
See How To Share an Art Collection in an Estate Plan, Wealth Management, June 7, 2016.
