Estate planning for the Professional Artist
Having an artist pass away is a terrible loss to any gallery
especially if it’s unexpected. There are widespread economic tidal waves for
all those in the path. The artist’s
family, collectors and the gallery representatives are all put into uncharted
waters if there has been no forethought before the tragic event.
I have lost two artists in twenty years as a gallery owner and
I would expect there will be more if I’m lucky enough to stay in business
another twenty years. I recently released a fictional murder mystery Paint by Numbers the plot line follows what
happens if an unscrupulous dealer takes advantage of an expected artist’s death
(or precipitates it as in my novel).
While the book was pure fiction there is some insight to be gained in
avoiding problems with your estate if you’re an artist. Don’t put your loved ones
and the galleries that represented you into a whirlwind of confusion by not
thinking ahead. If your over fifty and making a living as an artist you need to
read this blog, take it to heart and do some early estate planning.
It is imperative you take precautions to outline how you
want your estate handled once you’re gone.
This should include price structure recommendations and distribution
strategies after your death of your remaining artwork. An accurate inventory with photographs of all
your work while your still alive is very helpful to all involved and can prevent
the estate from loosing track of artwork you may have located in a variety of
galleries across the country or even internationally. Set some kind of guidelines, even if rough in
nature, as to what price structure should be followed when you’re gone and how the
remaining artwork should be distributed. This will eliminate many of the
problems your estate will potentially have. Just because an artist dies, even
at a young age or unexpectedly, it doesn’t necessarily mean the work will go up
in price especially if the remaining artwork is mishandled. If there is a large
estate and sizable chunk of the work comes out all at one time it could bottom
the value of the art, conversely if the work is raised to unrealistic values
immediately it might shut down interest for the remaining work as collectors
view the estate as creating a frenzy, gauging the market and in some cases the
end result might deprive the heirs of expected longtime support from the estates
remaining artwork. Turning off collectors dead or alive is never a good thing.
Obviously each estate will be different depending on the art,
value and the needs of the estate and its heirs. This is why it’s imperative as an artist you
take responsibility for what you are leaving behind, your art. Unless you want
a free for all after your death it’s best for all those involved to have a
frank discussion with family, lawyers and the dealers you trust and respect. These
details should be spelled out in writing, the better for all involved. Your artwork is what you spent your life
creating and you may have very specific ideas where and how you want it
distributed. You may want some specific
museums to get certain pieces, and if this is the case then write this in your
will. Just saying it in life to your family or favorite museum director isn’t enough;
it needs to be in writing. You may want pieces left to unborn grandchildren or
great grand children; this is your chance to make your wishes heard. Maria Martinez, the great San Ildefonso
potter, gave her children and grandchildren her pots while she was alive. This
was her way of leaving something behind for a rainy day. I have seen more than one new roof paid for fully
decades later by an artist who understood the value of her art.
As a general rule from what I have seen in estates that have
been handled appropriately, there can be a seamless transition. Thoughtful consideration of how to distribute
the remaining art works; price structure and future representation will be some
of the most important aspects to workout in advance. Art is a business, whether we want to admit
it or not, and establishing appropriate price structure (just like when you are
alive) is also important after your gone. Making large increase in prices can
often shut down an interested market for an artists work, and if the artist was
prolific there will probably be plenty of work on the secondary market to fill
the needs of the collector bases which could circumvent an aggressive estate
executor, family member, or executor who does not understand the art market. Prices don’t always go up.
If the estate is small and/or the artist didn’t produce much
work and there was significant demand while the artist was alive, slowly releasing
work at ever increasing prices may be prudent until the floor is established of
what the new price structure should be.
In this case hanging onto artwork by the estate maybe more important
then selling it too quickly. I’ve heard many an artist say they won’t be worth
anything until they’re dead. This might be the case, but if you don’t think
ahead it’s possible your work might be worth much less if it’s not handled in an
appropriate and professional manner. The burden lies with the artist to
consider the unthinkable, you won’t live forever but if you think ahead your
legacy might.
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