In another example of the discussions that took place in the recent Family Wealth Report Family Office Investment Forum, this panel focused on fine art, inheritance, transfers and the tax implications.

On April 23, 2025, at the Family Wealth Report’s Family Office Investment Forum, there was a compelling panel discussion under the bracing headline: "You're Dead, Now What Happens to Your Prized Collections?" 

The panel was moderated by Brian Hughes, president of Eton Advisors, and with Matthew Erskine, partner at Erskine & Erskine, and Tom Ruggie, Founder and CEO at Destiny Family Office.  This event gathered experts to explore the complex world of estate planning and asset management, focusing on personal collections ranging from art and sports memorabilia to exotic cars and digital assets such as non-fungible tokens (NFTs).

Left to right: Hughes, Ruggie and Erskine

Opening insights
Hughes kicked off the session by highlighting the significant appreciation in value that many collections have experienced over the past decade. For instance, artwork and gold coins have seen their values double or even quadruple since 2008, while the NFT market witnessed an astronomical 21,000 per cent increase in 2024. Ruggie related how he purchased a baseball bat used by Babe Ruth in 2008 for $16,000 that is now worth 20 times that amount or more. These trends underscore the importance of strategic planning for collectors and their heirs.

Understanding the need for planning
The discussion emphasized the critical need for proactive planning. Hughes referred to a common saying by Erskine: "Something is better than nothing," stressing that even a simple one-page plan can make a significant difference. Ruggie shared the story about recognizing the risk he was taking, considering the unpredictability of life, asking: "What will happen to my collection if I don’t come home tonight?" This narrative served as a reminder of the urgency to plan for collections.

Strategies for managing collections
The panelists laid out a roadmap for effective asset management, including assessing holdings, maintaining collections, and developing an exit strategy. They said it is important to view oneself not just as a collector but as a steward, taking a long-term perspective on preservation and succession.

The panelists also discussed liquidity and asset allocation, noting how emotionally attached collectors can sometimes act irrationally. The opaque nature of the market and high taxes on unplanned sales were highlighted as significant hurdles.

Valuation and documentation
Regular valuation and meticulous documentation are crucial. The speakers recommended annual estimates of value by websites such as Invaluable and more formal appraisals periodically using reputable independent and unconflicted specialists. Accurate record-keeping ensures that collections are correctly valued and accounted for in estate planning.

Tax implications and risk management
The conversation also covered optimizing tax implications of sales, inheritance and charitable gifting of collectibles including tax deferral, estate freezes, planning for charitable giving. They also pointed out the high cost of not ensuring adequate liquidity. Ruggie related one situation where a collector had loans collateralized by their collection with interest rates as high as 30 per cent. The panelists advised on risk management strategies, including insurance, security, and proper storage, to protect the collection's integrity.

Difference between a collector and a steward
The session delved into the difference between a collector and a steward. A collector focuses on acquisition and personal enjoyment, while a steward considers broader responsibilities such as cultural preservation and public benefit. Effective succession planning involves both collecting and stewardship.

Exit strategies and multi-generational wealth transfer
Panelists explored various exit strategies, including holding or divesting assets, and considered the implications for heirs who may lack interest or knowledge about the collections. They stressed the importance of establishing good governance, educational resources, and innovative approaches to multi-generational wealth transfer.

Final takeaways
As the session concluded, the panelists urged attendees to act. Whether it involves discussing plans with advisors or family members, the key message was clear: "Do something." This proactive approach ensures that collections are not only preserved but also serve as a meaningful legacy for future generations.

Engagement and follow-up
To facilitate ongoing dialogue, attendees were encouraged to write down their questions for follow-up discussions. This interactive approach ensures that every query is addressed, helping families and collectors manage the complexities of estate planning with confidence. Additionally, they provided QR codes to Ruggie’s Collection Scorecard and to Erskine’s checklists and case studies. 

By embracing these insights from the Family Wealth Report panel discussion, collectors can manage their prized possessions more effectively, ensuring that their legacy endures well beyond their lifetime.