WITH THE RIGHT PREPARATION, COLLECTORS CAN SAVE TIME, REDUCE STRESS, AND MAXIMIZE THE FINANCIAL BENEFITS FOR THEIR HEIRS AND OTHER BENEFICIARIES
By Barbara Tunick | November 18, 2025
No one wants to think about – let alone talk about – dying, but if you’re a serious collector, the time is now, especially if you want to leave behind more than just memories. That’s because many professional advisors focus on investment, real estate, and business holdings, not on what are potentially the most financially complicated and emotionally fraught assets in your portfolio – your collections.
Such assets are often overlooked as part of estate planning. That’s a mistake for individuals and families who are considering what kind of legacy they want to leave to their heirs and charitable beneficiaries. Oftentimes, collectibles such as fine art, rare coins, luxury accessories, sports memorabilia, jewelry, and watches are much more than a passing passion project, but rather a significant financial investment as well.
Fancy Intense Yellow Diamond, Diamond, Gold Ring. Sold for $337,500 in a May 2025 Heritage auction.
In fact, according to Deloitte’s 2023 Art and Finance Report, ultra-high-net-worth individuals hold more than $2 trillion worth of art and collectibles, with the total value expected to grow to $2.86 trillion by 2026, which accounts for almost 11% of the average client’s wealth. Due to the large role that art and collectibles play, it’s critical to know what a collection is worth so you can accurately and effectively plan for the future.
Here are five basic steps to help you maximize the successful progression and eventual succession of your collection.
Frank Frazetta ‘Conan’ Novel Cover Painting Original Art (Lancer/Ace, 1967). Sold for $13.5 million in a September 2025 Heritage auction.
1. Organize and Prioritize
Sometimes neither the collector nor his or her financial planner knows how much a collection is worth. That’s why before you buy anything new, or sell anything you’ve collected, it’s a good idea to evaluate your existing collections, hire advisors, and review your items’ condition and provenance.
According to Roberta Kramer, Heritage Auctions’ Senior Vice President of Business Development, Appraisal Services, and Trusts & Estates, it’s important to authenticate every item in your collection. And it’s especially critical to understand rapidly changing markets, as global economic conditions, as well as supply and demand, can affect the market very quickly. “Truly contemporary art is a rapidly moving market that needs to be monitored constantly,” she says. “Works like that of Simone Leigh, for instance, have skyrocketed in value very quickly, whereas modern works like Picasso’s are more like a blue-chip stock that stays steady and doesn’t require as much monitoring. Two or three years ago, Simone Leigh’s pieces sold for $60,000 to $150,000. Now they’re selling for several million dollars and are in major museum collections.”
Hollywood, entertainment, and music memorabilia are other surging collectible categories. “Nostalgia plays into it, like concert posters ripped off telephone poles selling for tens of thousands of dollars,” Kramer says. “Last December we sold Dorothy’s ruby slippers from The Wizard of Oz for $32.5 million. They sold for $50,000 in 1988, $100,000 in 2001, and then $32.5 million in 2024. That’s a significant bump, bigger than any other I can recall.”
‘The Wizard of Oz’ (MGM, 1939), Judy Garland ‘Dorothy Gale’ Screen-Matched Ruby Slippers. Sold for $32.5 million in a December 2024 Heritage auction.
Comic books and sports memorabilia have been collectible for a long time, but their respective markets are also experiencing rapid growth. In addition to the nostalgia factor, auxiliary markets have emerged. For instance, original art for comic books is now bringing auction results in the millions of dollars, and sports memorabilia is no longer limited to trading cards, balls, and jerseys. Physical pieces of stadiums and arenas, including the floor of a basketball court, as well as ticket stubs are collectible and potentially quite valuable.
Also flourishing are luxury accessories. “The secondary market for luxury accessories has absolutely skyrocketed in the past 10 years,” says Diane D’Amato, Heritage Auctions’ Director of Luxury Accessories, Private Sales & The Boutique. “It’s a simple matter of supply and demand. Clients and collectors are passionate about the bags. They’re wearable pieces of art. Plus, they’ve educated themselves about the luxury market and realize it’s just as strong, if not stronger than the stock market. For instance, the most coveted bag at the moment is a newly released pure white Chantilly crocodile Hermès Birkin. It retails new close to $100,000 but will sell for close to $300,000 on the secondary market.”
Not all collectibles hold their value, however. “When I was a kid, stamps and coins were the two things people collected,” Kramer says. “Today there’s virtually no market for stamps, even though the coin market is booming. China, crystal, and fur coats may have been worth collecting in the past, but today the only value they have is sentimental. Just give them to family members who will appreciate them.”
Hermès Exceptional Collection 25cm Matte White Himalaya Niloticus Crocodile Birkin Bag with 18k White Gold and Diamond Hardware. Sold for $250,000 in a December 2024 Heritage auction.
2. Conduct a Comprehensive Inventory
While this phase may seem daunting, Kramer advises that now is the best time to begin a comprehensive inventory and valuation of your collection, including documenting the history or provenance of your acquisitions. “It can raise the value of an item by knowing where it came from, where and when it was found, and how you obtained it,” she says. “If you start this process when your collection is small, it makes it so much easier later on. Otherwise, it becomes a much more time-consuming, complicated, and expensive undertaking if an appraisal team gets called in after someone dies.”
The most efficient and thorough way to document your collection is with photos, detailed descriptions, and appraisals. Remember to keep them all together, ideally in a digital inventory. It’s also wise to update your insurance coverage based on current appraisals rather than what you paid for a piece. Additionally, appraisals should be updated every five years or whenever there’s a significant market shift, so your records remain current and accurate.
1932 Babe Ruth Game-Worn New York Yankees World Series ‘Called Shot’ Jersey. Sold for $24.12 million in an August 2024 Heritage auction.
It’s also important to remember that appraisals are not one-size-fits-all. “I can get three different appraisals done on the same day for a timepiece or a diamond ring, and each one will have a different value,” Kramer says. “That’s because one can be the value for insurance replacement, another can be its fair market value, and the third for bankruptcy or liquidation purposes.” Knowing why and when the appraisal was done is crucial to understanding its relevance. What’s more, the Uniform Standards of Professional Appraisal Practice is the standard for fair evaluations, so it’s essential that the appraiser is USPAP compliant. It’s equally important that the appraiser has the relevant expertise to appraise the collection. “For instance, you need a gemologist to appraise diamonds,” Kramer advises. “Don’t just go to your local jewelry store or antique dealer.”
Another tip: The person who sold you an item should not be the same one appraising it. “It’s important to keep an arm’s length away,” Kramer says. “At Heritage, we have an in-house appraisal department called Heritage Appraisal Services, which is a separate and independent company. That means that even though we can provide qualified, experienced specialists in more than 50 collecting categories, Heritage Appraisal Services is free from the potential bias of being affiliated with the auction house. In fact, if we go in and see items purchased from Heritage, we will bring in outside appraisers to evaluate them.”
Victoria Gold Proof ‘Una and the Lion’ 5 Pounds 1839 PR62 Ultra Cameo NGC. Sold for $312,000 in a May 2025 Heritage auction.
3. Determine Goals and Plan Accordingly
If your primary goal is to maximize your collection’s financial value, you and your advisors might choose to sell the collection during your lifetime. Many collectors, however, want to pass their collections on to their heirs, but before doing so, Kramer recommends having an in-depth conversation to make sure everyone is on the same page. “The average age of heirs is considerably older than it used to be, which may mean they’ve already downsized and have no room or interest in acquiring and caring for someone else’s collections,” she says.
Another option is donating collections to charity. This is especially relevant for collections with broader appeal or for collectors whose heirs aren’t interested in attaining the collection. Donating a collection to a museum or other charitable organization can also provide tax benefits while ensuring its public enjoyment and preservation. The only caveat: Make sure the museum or charity wants the collection. “Many museums are becoming more selective about the items they accept,” Kramer says. “That’s why it’s vital to have a conversation first to find out if the museum actually wants the collection or would prefer a check instead.”
BG-105 Jimi Hendrix Experience 1968 ‘Flying Eyeball’ First-Printing S.F. Concert Poster. Sold for $32,500 in a November 2025 Heritage auction.
4. Consider Tax Implications
The “One Big Beautiful Bill Act” permanently extends the current estate and gift tax exemption, raising it to $15 million per individual in 2026. This provision doesn’t sunset but continues to increase for inflation adjustments beginning in 2027. Kramer’s advice: “High-net-worth individuals should use their lifetime gift and estate tax exemption while it’s high and remove any future appreciation from their taxable estate by gifting their collection or parts of it,” she says. “The value is removed from the estate, which reduces the total value of the estate subject to the federal estate tax at a rate of 40%.”
Additionally, the annual gift tax exclusion for 2025 is $19,000 per recipient. Because annual exclusion gifts aren’t subject to IRS reporting requirements, they may be used to transfer lower-value items to family members without using any of the exemption amount. “The great thing here,” Kramer says, “is you can gift Grandpa’s watch, some jewelry, or art that’s not worth a tremendous amount and remove its future appreciation.”
Another factor to consider is the capital gains tax. “If the collection is given at death, the cost basis is adjusted to its value at the date of death,” Kramer notes. “If the donor expects the collection will be retained, a current gift is advisable. On the other hand, if the donor thinks the recipient is going to sell the collection, then gifting it at death is advisable.”
1954 Fender Stratocaster Sunburst Solid Body Electric Guitar from the Skip Maggiora Legacy Guitar Collection. Sold for $300,000 in a December 2024 Heritage auction.
5. Continue to Monitor
Because collections are illiquid, without a proper plan they may cause family conflicts or create tax problems. Exemptions may fall and collectibles face a 28% capital gains rate. This rate is significantly higher than the standard long-term capital gains rates that apply to other assets like stocks and real estate. That’s why it’s wise to manage collectibles as investments that need updated valuations, regular appraisals, and revised plans depending on market trends and family preferences.
Having a will in place will also help ensure that your collections are handled the way you intended. It’s also advisable to appoint a special executor or trustee, especially if the collections are high value. Having a trust is also prudent since it allows for the professional management, maintenance, long-term care, and eventual distribution of valuable items.
Most people want their collections to continue to increase in value, as well as bring joy to others posthumously. One way to do that is by using donor advised funds (DAF) to fund philanthropy. “A donor advised fund is one of the easiest and most tax-advantageous ways to give to charity,” Kramer says. When you contribute funds or assets to a DAF, you receive an immediate tax-deductible donation for the contribution amount. The funds are invested, and any earnings are tax-free, allowing the account to grow, making even more funds available to your favorite charities. “We worked with a lovely gentleman who used his guitar collection to fund a DAF before he passed,” Kramer says. “His collection funded musical charities for kids who otherwise couldn’t afford to learn to play musical instruments. Now there are kids getting musical instruments and lessons across the Sacramento Valley due to that DAF.”
Some might say this proves that a legacy isn’t confined to stocks, bonds, and financial accounts. It’s also shaped by the treasured objects and memories we leave behind.