A collection of art, watches, cars, wine, jewellery and coins derives its value from the items themselves and, in many cases, from the records that establish their provenance, authenticity, ownership and condition.
An executor has to find both. The dealer who sourced a watch, the service history of a car, the year a case was laid down, the receipt for a painting bought at auction 20 years ago- all of it sits wherever the collector left it.
What the Records Are For
Estate administration and any eventual sale may require a market-based valuation, while insurance valuations may be based on replacement, agreed, or another specified value, which can differ substantially from a market figure.
Valuations also need splitting by category. In 2025, the Knight Frank Luxury Investment Index finished down 0.4%, while combined fine art sales across major auction houses rose 11% year on year, the Patek Philippe Market Index gained 12.1%, and the Liv-ex Fine Wine 100 fell 2.5%, leaving it close to 25% below its 2022 peak. One number across a whole collection hides movements that large.
A working file for a collection contains:
- a valuation by category, refreshed every two or three years
- provenance documents, certificates of authenticity and original purchase invoices
- service and restoration records, particularly for cars and watches
- import, export and customs paperwork for anything bought abroad
- the location of every item, including third-party storage and safe deposit facilities
Records that establish authenticity and history can affect who bids and what they pay. A watch with its certificate and service history reaches a different buyer than one without.
Specific Gifts and the Residue
Anything a will does not specifically dispose of generally falls into the residue of the estate. The residue can include assets that are transferred to beneficiaries rather than sold, depending on the will and the circumstances of the estate.
Naming items or categories keeps the choice with the collector. Four approaches come up often:
- leaving a category to the beneficiary with a genuine interest in it, with cash equalising the others
- granting beneficiaries a right to select items in turn before any sale
- referring the will to a separate schedule that is updated as the collection changes
- gifting significant pieces during life, once the tax position has been checked
A separate schedule can be useful for active collectors, but its legal effect depends on how it is prepared and how the will refers to it. The solicitor preparing the estate plan should confirm whether it can be updated without changing the will.
Executors and the Time to Sell Well
An executor’s role is to collect and protect estate assets, deal with debts and expenses, and distribute the estate in accordance with the will and applicable law. That does not mean every asset needs to be sold immediately.
A will can give an executor specific powers and directions concerning the retention and sale of assets, subject to the applicable law.
What would a collection bring if the person selling it had two years to place each piece?
Storage, insurance and transport during administration also need a funding source, and dealing with that in the estate plan keeps the question away from the beneficiaries.
Assets Held in More Than One Country
A villa in Tuscany, a berth in the Mediterranean, a garage in California and a cellar at home put four legal systems into a single estate. Immovable property is generally subject to the law of the jurisdiction where it is situated, so one will rarely handle all of it cleanly.
Collectors with assets in multiple jurisdictions may use separate wills for different countries, but the documents need to be carefully coordinated so that one does not unintentionally revoke or interfere with another. A register of what is held where, and through which entity, saves an executor considerable work.
How Three Tax Systems Treat the Same Collection
The same collection can produce different results depending on where its owner dies and where the pieces sit.
United States. For 2026, the federal estate tax basic exclusion amount is US$15 million, according to the IRS. An estate whose taxable value falls within the available exclusion will generally have no federal estate tax liability, although state-level taxes and other circumstances can produce a different result. The IRS also taxes long-term gains on collectibles such as art and coins at a maximum of 28%, compared with a maximum of 20% for most other long-term capital gains.
United Kingdom. Inheritance tax runs at 40% on the value of an estate above the £325,000 nil-rate band, which can rise to £500,000 where a home passes to children or grandchildren, and the relevant conditions are met, and falls to 36% where at least 10% of the relevant net estate is left to charity. Certain pre-eminent works of art and other objects of national scientific, historic or artistic interest can qualify for conditional exemption from inheritance tax and related capital gains tax reliefs, provided the relevant conditions are met. These include preserving the item, keeping it in the UK and providing reasonable public access.
Australia. Australia does not impose a federal or state inheritance or estate tax. CGT can nevertheless become relevant to estate assets when they are later disposed of, subject to the rules that apply to assets passing from a deceased estate. The Australian Taxation Office disregards collectables acquired for $500 or less, exempts cars and motorcycles, and limits capital losses from collectables to use against gains from collectables.
The three systems approach collections differently. The UK can impose inheritance tax on an estate at death, with conditional relief available for qualifying national heritage property. The US can impose federal estate tax above the available exclusion, while later sales of collectibles can attract the 28% maximum federal collectibles rate and inherited assets generally receive a new tax basis at death. Australia has no inheritance or estate tax, but CGT can become relevant when assets are later disposed of.
Where the Will Is Administered
Succession and probate law in both the United States and Australia is primarily state based, while federal tax rules also apply in the United States. A will is administered under the applicable succession and probate rules, which can differ between jurisdictions.
In South Australia, succession law is now primarily governed by the Succession Act 2023, which commenced on 1 January 2025 and replaced the Wills Act 1936. Families with significant South Australian assets tend to have their estate planning reviewed by estate lawyers in Adelaide against the current South Australian rules rather than assuming a will prepared in another jurisdiction will operate as intended.
What Well-Documented Collections Have in Place
- a valuation by category, with a reminder set to refresh it
- provenance, service and purchase records stored with the valuation rather than with the items
- a clear split between pieces treated as specific gifts and pieces left in the residue
- an executor with express powers and directions on retaining and selling assets, and a funding source for storage and insurance
- advice on whether overseas holdings call for a separate, coordinated will in that jurisdiction
- one family member, and the executor, who knows where the documents are kept
- a review after any significant acquisition or sale
Deciding Early
A file recording what was bought, what it cost, and what it is worth lets a family act on the collection instead of reconstructing it. Most of the work is record keeping, done once and then maintained.
The remaining decision is who should end up with what, made while there is time to make it properly.
This article is general information only and does not take account of any individual’s circumstances. Tax and succession rules change and differ by jurisdiction.
