Art and the great wealth transfer

In Roald Dahl’s book Charlie and the Chocolate Factory, a group of five children win golden tickets to visit the factory where cocoa and candy rule. Naturally, the children are elated at the news and set out on a lifechanging adventure. Some of today’s Generation X and Millennials will be in a similar euphoric mindset when they collectively inherit an estimated $85 trillion in assets from their Baby Boomer parents in the next twenty-five years. The Great Wealth transfer, also known as the Great Boomer transfer, refers to the largest intergenerational wealth transfer in history.¹

Yet giving or receiving the “golden ticket” of an inheritance is not always sweet. As main character Charlie noted at Willy Wonka’s chocolate factory, not every child managed their gift of sugary goodies successfully. In real life, mismanaged wealth transfers can create challenges for families. HBO’s Emmy award winning series Succession shows the pitfalls of children squabbling over legacy assets and power in a more metropolitan setting.

Managing this transfer of wealth is an important undertaking that can involve trust and estate attorneys, financial planners, and insurance agents. Part of the process is understanding possible financial and tax implications. In 2024 the Federal estate tax exemption was $13,610,000; for 2025, the amount is $13,990,000. This means that estates valued over this amount may be subject to a Federal estate tax.² In addition, each state may have its own estate tax at a different threshold.

Transferring traditional assets such as real estate, business interests, and stock portfolios, are routine. We can expect that art, furniture, and collectibles will be passed on as well. According to the most recent Art Basel and UBS Global Art Market Report, the U.S. is the strongest global art market, with the largest base of HNW and ultra-HNW individuals in the world.³ Deciding how to disperse passion investments such as art, wine, and collector cars can be more emotionally and logistically complex. Below, we’ve organized considerations into three parts to provide some thoughts about how to structure the process.

1. Understand the Scope and Value of your Collectibles

A great start is gathering the following:

• An inventory of your art, jewelry, wine, and collectibles of value
• Current appraisals, valuations, invoices, certificates of authenticity, and other relevant documentation
• Documentation of alternative ownership structures such as estates, LLCs, or Foundations
• GIA certificates for jewelry
• Your fine art/jewelry/valuables insurance policy

It’s important to remember that the values on your insurance policy (replacement) are not the values used in estate planning (fair market value). Read our article on this importance difference.

2. Consider distribution strategies

Once you know the scope and value of your collectibles, you can consider your options, which may include selling objects, donating them to charities or non-profits such as museums, or gifting items to family or friends. Check out part two of this series on Managing your collectible assets.

3. Educate and Empower your Beneficiaries

Most people enjoy receiving items for which they have nostalgic memories – whether it is a vintage Tiffany silverware set used for holiday celebrations, vintage sculptural ceramics from the family cabin, or an heirloom emerald ring. But do they know how to take care of these items?

Part three is preparing your beneficiaries to care for the cultural heritage that you have collected and are passing on to them. If you are gifting artwork or collectibles, here are some questions to consider around wisdom to pass onto the beneficiary:

• Are there any special considerations for caring for the items?
  • (e.g., Tiffany silverware is not dishwasher safe; oil paintings should not be hung over the fireplace.)
• Is there a gallerist/dealer who specializes in what you collect, and are gifting? The contact information for this person or gallery could be an important resource for the new collectors if they ever decide to sell or need to be contacted in the event a museum would like to borrow the art object for an exhibit.
• Is there paperwork you should pass on to prove authenticity, provenance, material, value, etc.
• Is there an appraiser you have already worked with who has subject matter expertise in appraising your artwork (musical instruments, American furniture, Chinese watercolors, etc.)?
• Should items be stored or displayed in a specific way? Check out our guide for tips.
• How can you find a conservator if the artwork needs some TLC? Finds some tips here.
• Will the gifted item or collection be moved to a location prone to natural disasters such as wildfire, hurricanes,  or earthquakes? Should the beneficiary need to create an Emergency Plan for the new homes for the articles?

Passing on a legacy is meaningful for the giver and receiver. Being able to share your passion – and assets – with others is a sweet endeavor.

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Berkley One is a Berkley Company.