Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
Inheriting a Stamp Collection
and
Estate Planning Tips for Stamp Collectors
Thanks Michael!
(Message edited by admin on March 23, 2011)
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A very fine job indeed. Easy to read, and a valuable addition to any of our senior members getting close to thinking about how to pass on their collection to heirs. A special thanks also, to Ralph, who quietly gets everything set up and posts the articles for us all to enjoy.
Thank you guys.
Dan C.
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Although I agree on the principle of what Michael says concerning estate planning with your stamp collection I find there is a flaw in the system. Most collections would normally be in the hundreds to low thousand dollar value and would not affect most beneficiaries, however, when a collection is of much higher value then the beneficiaries could find themselves in financial difficulty. It is best to keep the government and lawyers out of the loop. Proper transfer of such items to those you love "before" that day, with proper information about the collection(s) is essential. I collect stamps and model trains, both valuable collections. My children are co-owners NOW, so if something happens, well .... Now, a living trust is a must .... at least give your family a chance at keeping most of what you wish they should rightfully get. Perry
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Dear Perry,
You are quite correct in your addendum to the article, and it ought to be appended somewhere. Michael was addressing the broader question about how to go about handling a passed down collection, and your focus is upon the immediate impact of the tax structure for that heirloom.
In general, the government will try to get a piece of any money pie they can identify as being part of your estate, so the prudent way to handle that is to have as little in the actual estate as possible upon passing.
That thought brings us into the will/trust issues that may or may not be appropriate for this venue, but also ought to be considered somewhere. Perhaps in another article or two-should anyone be knowledgeable in those aspects. If so, and if you'd like to have an Indian to back your efforts as Chief writer, I'd volunteer to assist if you'd like.
Dan C.
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Thanks for the compliments on the articles and for the help getting it posted. While the articles do not specifically say to give the collection to heir before the inevitable happens, I do allude to giving it to anyone who has an interest as one of the ways to dispose of the collection. However, it is a good point to make. Then there is the IRS issue of anyone receiving more than $10,000 in gifts in a year from one person is supposed to claim the amount above $10,000 as income and pay taxes on it. At least the government doesn't have a watchdog stationed at everyone's home yet. So.... I leave you to draw your own conclusions...
Hey Perry, I too collect stamps and am a model railroader: New Haven to be exact. How about you? I'm in a video on You Tube called "Art on the Tracks".
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A person is allowed to give 12,000 per year to as many people that they wish. The person receiving this money declares it as a gift. Anything over the 12,000 is taxable.
Richaad
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I believe that I have found the company that will handle my foreign stamps, after I am gone.
I have made arrangements with Rasdale Stamp Co in Westmont, IL to place my stamps in their auctions, and give the proceeds to my estate. I have been working with Kevin Kellermann, one of the owners of the company.
One has to feel satisfied when making a choice like this, and Kevin came across to me as being a responsible person to handle my stamps.
We both agreed that the best way to go was through auction, rather than a direct sale.
In the meantime, I have given Kevin some choice items for auction, and I am continuing to sell off an much as I can.
My US stamps will be handled by a different dealer.
Richaard
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Richard I understand your thinking BUT you have to realize that when you add houses, property, cars, collections, expensive jewelry, and bank accounts to an estate it can add up quickly. Since I own all of the above outright then there is no debts to be paid or written off ... that can make lawyers smile and governments drool! It's bad enough the grave diggers want most of your savings, but that's another story. So why not just give to your children and grandchildren the maximum allowable each year.
Michael .... Southern Pacific Railroad DIE HARD! I'll send a private email .....
Perry
(Message edited by hobo on March 24, 2011)
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The gift tax discussion is all U.S. information, of course.
The annual gift tax exclusion is currently $13,000 per year, per donor, per donee. This number is indexed for inflation, so it will theoretically go up from time to time.
Therefore, husband can give son $13K; wife can give son $13K; husband can give daughter-in-law (son's wife) $13K and wife can give daughter-in-law $13K. January 1st, you can start all over again.
Over $13K, it still isn't taxable, until you've used up your lifetime gifting exemption. You just have to report gifts in excess of the annual exclusion to the IRS so that they can keep track of where you stand.
This isn't tax advice. Everyone should check with his or her real tax adviser if you are going to play around with this. (And write the check for $12,750 to leave room for birthday and Christmas gifts.)
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I am having a problem and wonder if anyone can help.
I have a $5.00 Columbian stamp from 1893, SC#245. It was used on a piece of cover, with superb centering, so I decided to cut it off, and while doing so, I cut one corner off the stamp. I was wondering if I put the piece back together with scotch tape, if it would still be a valuable stamp??
Richaard
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Richard,
OUCH!!!
From dealing with my "Garbage Bag Collection" I have to say, DO NOT use scotch tape. The adhesive goes bad and seeps into the stamp and paper in less than 20 years. I can't tell you how many nasty discolored looking old stamps were in that bag due to my uncle using scotch tape to do repairs.
One method that I used to "repair" a torn stamp like what you described was to use a good old fashioned stamp hinge to reattach the stamp from the back. My uncle apparently had used this method as well and those stamps faired a lot better than the scotch taped ones. After 20 years, there was far less discoloration to the stamp.
As for it's value, I'm not an expert. I’m sure the value goes down, but given that Mystic sells used ones for a little over $2000, you might still be able to fetch a nice price for it from a collector. Heck, if I could afford it, I’d still bid on it just to try to get one into my collection.
So sorry to hear that this happened to you though.
Pat
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Richaard,
Ha Ha!!!
(Message edited by parkinlot on April 01, 2011)
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Pat: look at the calendar!
Jan-Simon
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As the great Q-Bert once said, "#%&*&@#$!!!"
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I am glad to see that some of you caught on.
APRIL FOOL!!!!!!
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Well done Richard, you sucked me in. :-)
Regards ... Tim.
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Hi Folks – I’d like to call your attention to a fine pair of articles just posted by SOR member Michael Generali. The articles give a nice overview of philatelic issues related to estate planning and inheritance and are a fantastic addition to our growing library of reference material. Check them out at:
Inheriting a Stamp Collection
and
Estate Planning Tips for Stamp Collectors
Thanks Michael!
(Message edited by admin on March 23, 2011)
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re: Estate Planning and Inheriting a Collection
A very fine job indeed. Easy to read, and a valuable addition to any of our senior members getting close to thinking about how to pass on their collection to heirs. A special thanks also, to Ralph, who quietly gets everything set up and posts the articles for us all to enjoy.
Thank you guys.
Dan C.
Login to Like
this post
re: Estate Planning and Inheriting a Collection
Although I agree on the principle of what Michael says concerning estate planning with your stamp collection I find there is a flaw in the system. Most collections would normally be in the hundreds to low thousand dollar value and would not affect most beneficiaries, however, when a collection is of much higher value then the beneficiaries could find themselves in financial difficulty. It is best to keep the government and lawyers out of the loop. Proper transfer of such items to those you love "before" that day, with proper information about the collection(s) is essential. I collect stamps and model trains, both valuable collections. My children are co-owners NOW, so if something happens, well .... Now, a living trust is a must .... at least give your family a chance at keeping most of what you wish they should rightfully get. Perry
Login to Like
this post
re: Estate Planning and Inheriting a Collection
Dear Perry,
You are quite correct in your addendum to the article, and it ought to be appended somewhere. Michael was addressing the broader question about how to go about handling a passed down collection, and your focus is upon the immediate impact of the tax structure for that heirloom.
In general, the government will try to get a piece of any money pie they can identify as being part of your estate, so the prudent way to handle that is to have as little in the actual estate as possible upon passing.
That thought brings us into the will/trust issues that may or may not be appropriate for this venue, but also ought to be considered somewhere. Perhaps in another article or two-should anyone be knowledgeable in those aspects. If so, and if you'd like to have an Indian to back your efforts as Chief writer, I'd volunteer to assist if you'd like.
Dan C.
Login to Like
this post
re: Estate Planning and Inheriting a Collection
Thanks for the compliments on the articles and for the help getting it posted. While the articles do not specifically say to give the collection to heir before the inevitable happens, I do allude to giving it to anyone who has an interest as one of the ways to dispose of the collection. However, it is a good point to make. Then there is the IRS issue of anyone receiving more than $10,000 in gifts in a year from one person is supposed to claim the amount above $10,000 as income and pay taxes on it. At least the government doesn't have a watchdog stationed at everyone's home yet. So.... I leave you to draw your own conclusions...
Hey Perry, I too collect stamps and am a model railroader: New Haven to be exact. How about you? I'm in a video on You Tube called "Art on the Tracks".
Login to Like
this post
re: Estate Planning and Inheriting a Collection
A person is allowed to give 12,000 per year to as many people that they wish. The person receiving this money declares it as a gift. Anything over the 12,000 is taxable.
Richaad
Login to Like
this post
re: Estate Planning and Inheriting a Collection
I believe that I have found the company that will handle my foreign stamps, after I am gone.
I have made arrangements with Rasdale Stamp Co in Westmont, IL to place my stamps in their auctions, and give the proceeds to my estate. I have been working with Kevin Kellermann, one of the owners of the company.
One has to feel satisfied when making a choice like this, and Kevin came across to me as being a responsible person to handle my stamps.
We both agreed that the best way to go was through auction, rather than a direct sale.
In the meantime, I have given Kevin some choice items for auction, and I am continuing to sell off an much as I can.
My US stamps will be handled by a different dealer.
Richaard
Login to Like
this post
re: Estate Planning and Inheriting a Collection
Richard I understand your thinking BUT you have to realize that when you add houses, property, cars, collections, expensive jewelry, and bank accounts to an estate it can add up quickly. Since I own all of the above outright then there is no debts to be paid or written off ... that can make lawyers smile and governments drool! It's bad enough the grave diggers want most of your savings, but that's another story. So why not just give to your children and grandchildren the maximum allowable each year.
Michael .... Southern Pacific Railroad DIE HARD! I'll send a private email .....
Perry
(Message edited by hobo on March 24, 2011)
Login to Like
this post
re: Estate Planning and Inheriting a Collection
The gift tax discussion is all U.S. information, of course.
The annual gift tax exclusion is currently $13,000 per year, per donor, per donee. This number is indexed for inflation, so it will theoretically go up from time to time.
Therefore, husband can give son $13K; wife can give son $13K; husband can give daughter-in-law (son's wife) $13K and wife can give daughter-in-law $13K. January 1st, you can start all over again.
Over $13K, it still isn't taxable, until you've used up your lifetime gifting exemption. You just have to report gifts in excess of the annual exclusion to the IRS so that they can keep track of where you stand.
This isn't tax advice. Everyone should check with his or her real tax adviser if you are going to play around with this. (And write the check for $12,750 to leave room for birthday and Christmas gifts.)
Login to Like
this post
re: Estate Planning and Inheriting a Collection
I am having a problem and wonder if anyone can help.
I have a $5.00 Columbian stamp from 1893, SC#245. It was used on a piece of cover, with superb centering, so I decided to cut it off, and while doing so, I cut one corner off the stamp. I was wondering if I put the piece back together with scotch tape, if it would still be a valuable stamp??
Richaard
Login to Like
this post
re: Estate Planning and Inheriting a Collection
Richard,
OUCH!!!
From dealing with my "Garbage Bag Collection" I have to say, DO NOT use scotch tape. The adhesive goes bad and seeps into the stamp and paper in less than 20 years. I can't tell you how many nasty discolored looking old stamps were in that bag due to my uncle using scotch tape to do repairs.
One method that I used to "repair" a torn stamp like what you described was to use a good old fashioned stamp hinge to reattach the stamp from the back. My uncle apparently had used this method as well and those stamps faired a lot better than the scotch taped ones. After 20 years, there was far less discoloration to the stamp.
As for it's value, I'm not an expert. I’m sure the value goes down, but given that Mystic sells used ones for a little over $2000, you might still be able to fetch a nice price for it from a collector. Heck, if I could afford it, I’d still bid on it just to try to get one into my collection.
So sorry to hear that this happened to you though.
Pat
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President - West Essex Philatelic Society www.wepsonline.org
01 Apr 2011
01:45:08pm
re: Estate Planning and Inheriting a Collection
Richaard,
Ha Ha!!!
(Message edited by parkinlot on April 01, 2011)
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Auctions - Approvals
re: Estate Planning and Inheriting a Collection
Pat: look at the calendar!
Jan-Simon
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re: Estate Planning and Inheriting a Collection
As the great Q-Bert once said, "#%&*&@#$!!!"
Login to Like
this post
re: Estate Planning and Inheriting a Collection
I am glad to see that some of you caught on.
APRIL FOOL!!!!!!
Login to Like
this post
Auctions - Approvals
re: Estate Planning and Inheriting a Collection
Well done Richard, you sucked me in. :-)
Regards ... Tim.
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