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Abstract: 

A critical component of collecting art is deciding when and how to part with a piece or multiple pieces in a collection. Collectors, their heirs and donees, and advisors need to understand the tax, legal, and personal issues involved in this process. A collector may need to consider whether to sell during his or her lifetime; heirs may not have knowledge about or familiarity with the collection or the value contained within. In both cases, methodology and timing of disposition are of utmost importance, especially when high value is at stake. Even where a charitable donation is contemplated, the question remains whether an outright donation of the object(s) or a sale followed by donation of the proceeds makes most sense. If art is donated to a family foundation, then the foundation may have to decide whether a sale is in order, so that the proceeds may be put to use in meeting foundation goals. This article examines key issues for art collectors once a decision is made to sell, including whether whether to sell at auction, through a private sale, or perhaps even a combination of the two. In every case, a careful analysis of the costs, timing, and collector goals must be carried out. Does the sale of the collection as a whole make the most sense? Are certain objects to be retained for sentimental or monetary reasons? A dynamic process involving a consideration of collection value and the complexity, speed, and certainty of disposition will help develop an overall strategy.

Keywords: Selling Art Through a Dealer; Selling Art Through Auction; Private Sales; Avoiding Publicity

Affiliations:  1: Horwood Marcus & Berk Chartered.