Pete Murrin, Partner in the Tax and Succession team at Turcan Connell, shares his insights into protecting artistic legacy through estate planning.
Whether an artist oneself, or a collector of artwork, a coherent strategy for estate planning is important. Objectives for artists and collectors can be subject to variance, including maintenance and management of collections, accessibility for future generations, tax efficiency, or simply passing art onto the next generation.
Each artist, collection, or family is a unique proposition for planning and due consideration should account for objectives, but also wider family and asset profile. The estates of selling artists, for example, may qualify for business property relief from inheritance tax, and consideration can often be given to efficiencies available in relation to attendant intellectual property rights including the Artist’s Resale Right. For collectors and artists, governing succession and avoiding family discord arising out of succession can be leading considerations, but so too can be capturing tax incentives arising in relation to rare or pre-eminent works.
Getting Wills and the appointments therein right can be critical. The utility of trusts as ongoing control and management structures for collections, legacy, and even reputation might be a valuable consideration. The Will, of course, envisages the landscape after death, comprehensive planning must also be cognisant of the potential impact of incapacity. In each case, identifying the persons to give effect to strategy through a loss of capacity or after death requires careful thought.
Getting the right advice at the right time is fundamental to creating a planning infrastructure best suited to accomplishing objectives and protecting a carefully and lovingly curated asset class. The right advice will do this in a tax-efficient and family-oriented manner, enabling planning during life and thereafter.
