Sports collectors usually enjoy showing off or talking about their baseball cards or autographed memorabilia, but in some instances, their children, spouses, or heirs aren’t quite as enthusiastic. Some don’t give a hoot.
It can pose one of many problems when a sports collector passes away and family members are clueless in what to do with that basement full of “sports stuff.”
Other challenges include heirs having little or no knowledge of the value of a collection or where or how to liquidate it even if an estimated value is known. If an executor of an estate is assigned to liquidate the assets, sports collections may be a challenge as they are not nearly as liquid as cash, stocks, or other tangible assets.
It isn’t uncommon for family members, siblings, or children who were best friends their entire lives to squabble over assets after a father or loved-one’s passing. If no will or roadmap is left with instructions on distributing the assets, splitting up a sports collection among heirs could be a nightmare, especially if there are mixed feelings about either keeping a collection or liquidating it.
“It’s always best to assign who gets what in a written memorandum with an inventory list and attach it to the will because sometimes children have different recollections of what was said about who gets what,” said Michael Fiffik, owner of Pennsylvania-based Fiffik Law Group. “The more precise the better because that also prevents one child or heir from raiding the collection and taking the valuable pieces first, whether it’s sports collections, art, or Hummel figurines.”
-Photo courtesy Leo Ullman
Estate planning can help guarantee the proper heirs receive the property left behind in accordance with a collector’s wishes. Directing the assignment of bank accounts and stock portfolios is usually included in an estate plan, but if an extensive and maybe valuable sports card or memorabilia collection is left behind, that should also be an integral component to an estate plan.
The best way to see that a collection is well-handled after passing is to take care of all the details before it is too late. The more detailed the estate plan is while the collector is still around, the better for everyone who might be involved in the estate.
For those not familiar with creating a will, there are multiple options and everyone’s situation is different depending on factors such as heirs, value of the estate, and tax ramifications. If a collector already has a relationship with a lawyer, they can advise on the best way to handle an estate plan. If they do not specialize in wills and estates, they should be able to refer a competent option. The local BAR association can also recommend a lawyer that specializes in estate plans.
“Use a lawyer when creating a will, especially one that specializes in that area,” Fiffik said. “Usually a lawyer’s fees to create a will would be under a thousand dollars and could be in the two or three thousand dollar range if trusts are set up. The complexity of the estate plan will depend on the cost, but adding a memorandum listing sports card or memorabilia collections to a will shouldn’t add too much if anything to the cost of creating a will.”
For small estates or ones that are not as complex, creating wills online are another option. Software programs are available for usually a fraction of the cost of using a lawyer but they are more generic than hiring a lawyer to do a personalized will. There may also be tax ramifications involved with an estate plan which a lawyer can at least address, but creating a will online or using a software program may be adequate for many situations.
If a collector wishes to donate cards or memorabilia to a museum of some kind, arrangements should be made ahead of time or family members may be hesitant to give away valuable sports items rather than cash in themselves. It is best to consult an accountant when donations are involved to be aware of any tax implications.
Cataloguing What You Have
It is always a good idea for collectors to keep an up-to-date and detailed inventory of items in their collection including estimated value, or an expert appraisal. The inventory can be an invaluable part of an estate plan. If a list or spreadsheet is supplemented with pictures or videos, that’s even better.
While it might seem like an odd thing to arrange, it’s a good idea to conduct a “walk-through” periodically with children, spouses, or executors of a will and familiarize them with the collection, especially the valuable pieces, so they can intelligently execute that part of the estate. If valuable pieces are stored in a safe or a safe deposit box, it’s important that heirs or executors know what they are, where they are kept and how to access them.
Dealing with Dealers
Sometimes collectors are told during their lifetime by associates they meet along the way, “If you ever want to sell your collection, give me a call.” Keeping their contact information and passing it on to executors or heirs is a good idea.
It is helpful if the collector has a relationship with a dealer who agrees to liquidate or buy the collection from the estate afterwards, so the heirs can have a qualified resource to deal with. The dealer’s name or business name can be referenced in the estate plan or told to children or heirs ahead of time. The dealer or auction company can then simply pick up the collection and begin the liquidation process, once paperwork is signed.
Ultimately, it may be best for a collector to liquidate their sports collection when they believe the time is right. That eliminates all the challenges of executors or family members dealing with the collection as part of an inheritance.
Besides storage needs, there are liabilities associated with sports collections such as fire, theft or the market tanking and affecting the value of sports cards and memorabilia. While there are companies devoted to insuring collectibles, many insurance companies no longer offer supplemental coverage for collectibles, according to Bob Dunn of Robert Dunn Insurance Agency of Carnegie, PA.
“There was a time when we could insure stamps, coins, or sports memorabilia but we don’t even offer a rider on insurance policies anymore for some collectibles,” Dunn said. “The market is just too unstable and the risk is too high.”
It’s commonplace for former athletes who have valuable collections of items accumulated during their time in uniform to call a sports memorabilia auction company. Money is split among family members, donated to a special cause or a combination of both.
Hard as it may be to believe, it’s not uncommon for baseball cards or sports memorabilia collections to end up in a dumpster when heirs are cleaning out a property after a deceased has been collecting for years, or in some cases an entire lifetime. A valuable baseball card collection or a box of autographed memorabilia could look like a box of junk to some people, so when preparing a will or an estate plan, include any sports collections so they end up in the proper hands instead of the garbage truck.
