Estate Planning and Tax Advice for Artists
Artists face unique estate planning challenges and opportunities:
- defining a legacy;
- protecting one's reputation post-death;
- creating an inventory or catalogue raisonné and establishing a fixed authentication procedure;
- making practical arrangements for maintenance, storage and insurance;
- creating corporate or trust structures to hold artworks for the future;
- managing future income streams from copyright and resale rights; and
- addressing the personal and emotional implications of what should happen to artworks after death and how best to provide for heirs.
We have extensive experience in providing clear and bespoke advice in this area. We also work with artist's estates, collectors, dealers, and businesses and charitable trusts with art-related interests.
Wills and Lasting Powers of Attorney
Wills and memoranda of wishes are the most effective way for an artist to define who should inherit their assets, how and when these should be distributed, and what provisions should be made for their management and preservation. Preparing a Will allows these questions to be addressed ahead of time, giving peace of mind that heirs will be fairly provided for and reducing the likelihood of difficulties or disputes after one's death.
We can also prepare Lasting Powers of Attorney to provide reassurance that an artist's assets will be managed in accordance with their wishes should they lose mental capacity during their lifetime. Lasting Powers of Attorney can include bespoke provisions relating to the sale, exhibition or donation of artworks.
Taxation of artists' estates, both during lifetime and upon death, is a complex area with specific planning opportunities.
Inheritance tax, charged at 40% on the value of an estate, will apply to all artworks within the UK and may extend to an artist's worldwide estate, and we advise on domicile and related Inheritance Tax implications. We have specific expertise in the Acceptance in Lieu regime, whereby works of national importance may be accepted by the authorities in part or full settlement of an Inheritance Tax liability.
Lifetime planning and taxation
We work with clients to arrange charitable donations and private gifts, loans to individuals and public institutions, and the establishment and administration of corporate or charitable structures for the management and display of artworks.
In addition, we advise on the Cultural Gifts Scheme, which provides tax incentives in return for donations to public institutions. We can also provide advice on corporate taxes where art is held within a company, and the potential VAT implications of lifetime donations by professional artists.
Chambers Private Wealth 2021 guide on Hong Kong’s law and practice
Jeffrey Lee, Jessica Leung and Jessica Chow write for the Chambers Private Wealth 2021 guide on Hong Kong’s law and practice.
Strategic Planning for Modern Landed Estates
The second in our series of articles on succession planning for landed estates covering a wide variety of matters.
A secret will, for the moment
When can you set off claims against different elements of a project
The Court’s decision raises important drafting considerations for construction contracts involving multiple elements of a project.
Drafting terms and conditions or negotiating a contract? Be wary of "unusual" and "exorbitant" exclusion clauses
When drafting a set of terms and conditions, companies must adhere to the requirements contained in the Unfair Contract Terms Act 1977
Stop, collaborate and listen: Top 10 Tips with Collaboration Agreements
Providing you with the top ten tips on collaboration agreements - what should you know?
Simon Green, Jeffrey Lee and Ray Ng featured in Asian Legal Business' article on the wealth management industry in Hong Kong
There has been a 20% increase in UHNW individuals in China in the past three years, with more than a fifth based in the Greater Bay Area.
Charles Russell Speechlys Swiss lawyers contribute to Private Wealth Chambers Global Practice Guide
This definitive global law guide offers a comparative analysis on Private Wealth law and practice from top-ranked lawyers.
Preparing your company for sale
We set out here some initial steps to consider in anticipation of a sale.
ESG investment and the challenges for trustees
What challenges does the ESG revolution present for trustees of private family trusts?
The impact of COVID-19 on commercial and residential tenancies
What impact has COVID-19 had on commercial and residential tenancies? Read more here.
Charles Russell Speechlys advises discoverIE on its acquisition of Antenova
discoverIE is a leading international designer, manufacturer and supplier of customised electronics to industry.
Q&A: Separate blocks, common parts and enfranchisement
Miriam Seitler and Lauren Fraser answer queries relating to leaseholders seeking to acquire the freehold.
Coded messages for landlords and tenants
“What does the code of practice mean for landlords and tenants? Read more here”
The family court’s role in micro managing 'trivial' disputes
The recent decision has dealt with the family court’s role in micro managing “trivial” disputes in relation to children
Bart Peerless and Matthew Radcliffe write for eprivateclient on ESG investment and the challenges for trustees
What challenges does the ESG investment revolution present for trustees of private family trusts?
Taxing horizons and fiscal black holes
A super-massive black hole at the centre of the nation’s finances means that tax reform and rates rises look increasingly likely.
Charles Russell Speechlys advises Acora on acquisition of Westgate IT
Westgate IT specialises in providing IT support to businesses in the South West.
Hugh Gunson quoted by Accountancy Age on why HMRC needs to rebuild taxpayers' trust after its Loan Charge failings
"HMRC needs to listen to the criticisms made in relation to its handling of the loan charge and reflect on them to achieve real change."
Grab the tail by the horns - Why is tail spend so critical in today’s outsourced portfolio?
It’s usually invisible, but in all likelihood, you’ve got tail spend.