What Should I Do With My Coins/Collectibles For Estates

One of the questions that we get asked routinely is “What should I do with my coins, and other collectibles when it comes to my estate?  Should I sell them, or leave them to my heirs? Can you help me decide my best course of action?”

We thought we would take this blog post to share 3 great reasons why selling your coins, as well as your other collectibles is a good option for many collectors.

Reason #1. Clueless Heirs

For the vast majority of collectors who leave both their coins as well as their other collectibles in their Will, the items will be inherited by many folks who know nothing and care nothing about the items.  If we are perfectly honest, most of these folks would probably prefer to have the money instead of the collection.

And because they are not emotionally attached to the coins or other items, chances are pretty good they will sell them.  We also know that for many of them, because of their lack of knowledge on these items, will be clueless when it comes to properly researching the collection prior to selling it.

The years you spent collecting, cataloguing, and classifying your collection will be for naught if left to the wrong people.

Reason #2. Overwhelmed Spouse

Some collectors will leave their collections to their spouses (usually this is a wife); because after all, the spouse has watched the other enjoy this hobby and may have in fact even purchased items for the collection as a gift.  Yet, for many of these spouses, they also would have no idea where to begin to figure out how to liquidate the collection.

Additionally for many spouses, they will already have a full plate of things to deal with when it comes to the death of a spouse and not having to deal with this would lighten the load.

Reason #3 Raiding Relatives

Or a worst case scenario would be that the collection was left to the estate and then somehow it “disappeared” before the rightful heirs received it.   One story we are familiar with is of a widow who requested an appraisal of her late husband’s gold coins that he had collected for years.  When she went to open the safe deposit box, to her utter shock, she found NO coin collection.  Another relative had access to the safe deposit box….there was no proof this relative stole the coins, but raiding relatives are a scenario you want to plan for.

Reason #4 The Taxman Cometh

The last reason to consider selling your collection rather than leaving it in the Will has to do with Uncle Sam.  If you sell your collection and have a “gain”, then you will be responsible for any capital gains taxes.  If you leave your coins as part of your estate, then if your heirs choose to sell the collection (and as mentioned above, unless you are leaving your collection to another collector who shares your passion, chances are very good that the collection will be sold) then your heirs will be responsible for this tax, giving them a much smaller profit than if you sold the collection.