Taxes. No one wants to pay them. But the reality is they exist.
As a collector, neither you nor your heirs should pay more than is legally required. To ensure that you and your heirs don’t overpay requires action now, not later (after you depart planet Earth). Awareness and good planning are the keys to peace of mind for you and protection for your heirs.
The second edition of Cash In Your Coins — Selling the Rare Coins You’ve Inherited just released by Whitman Publishing includes a new 16-page chapter devoted to the subject of “Taxes.”
Here we are sharing an excerpt from that chapter that provides some very basic information.
First, however, a disclaimer: The following information regarding the various types of taxes is general in nature and should not be construed to be legal advice regarding taxes. Rather, it is provided to make you more aware of possible taxes related to your estate or coins and collectibles you may inherit or sell. For specific advice regarding your circumstances, it is best to consult your accountant, an attorney specializing in taxes, or an estate-planning professional.
Probate, the procedure for settling the estate of a deceased person, is conducted in and according to the laws of the state in which the deceased maintained legal residence. Probate retitles a deceased person’s property and puts it into the designated beneficiary’s name.
If the deceased person had a will, he or she probably named a person or persons as executor or co-executors. If no one is named executor in the will, the probate court names an administrator (who functions the same as an executor).
The value of the estate is important in determining whether it is subject to various taxes.
Some states require the executor or administrator, within 90 days of being appointed by the court, to prepare what is referred to as the 90-day inventory. The 90-day inventory lists all property and assets of the deceased and declares a current fair market value of the items. If there are questions regarding values listed on the 90-day inventory, they must be resolved by the time the final inventory is filed with the court.