The Collector’s Handbook | Essential Tax & Estate Planning Guide for Collectors

James L. Halperin and Gregory J. Rohan

The Collector’s

Handbook

14th Edition

Tax Planning, Strategy and Estate

Advice for Collectors and Their Heirs

THE COLLECTOR’S HANDBOOK

Collector’s

Handbook

The

Tax Planning, Strategy and Estate

Advice for Collectors and Their Heirs

James L. Halperin and Gregory J. Rohan

Edited by

Noah Fleisher, Brian Keagy,

Steve Lansdale and Steve Roach

Dallas, Texas

Collector’s

Handbook

The

By James L. Halperin and Gregory J. Rohan

Edited for 2023 by Brian Keagy and Steve Lansdale.

2019, 2020, 2023 by James L. Halperin and Gregory J. Rohan

permission of the copyright owners is unlawful. Written requests for permission or

further information should be addressed to:

Ivy Press

2801 W. Airport Freeway

Dallas, TX 75261-4127

This publication is designed to provide accurate and authoritative information with

respect to the subject matter covered. It is provided with the understanding that

neither the authors nor the publisher are engaged in rendering legal, accounting, or

other professional advice. If legal advice or other expert assistance is required, you

should seek the services of a competent professional.

Choose the members of your financial team wisely, and don’t be afraid to pay for

good advice; it will save you money in the long run. You will likely need a CPA,

a lawyer, a financial planner, and an insurance agent to execute the planning

recommended in this book. Encourage your entire team to work together; a financial

plan is only as good as it is holistic. Please remember that tax planning is an ongoing

process and not an annual event. Collectors have special needs, and tax laws affect

different collectors differently.

ISBN: 978-1-63351-472-0

Manufactured in the United States of America

Copyright Cover Design by Jonathan Fehr, 2023

A True Collector’s Mentality

“My wish is, so that my drawings, my prints, my

curiosities, my books, in a word, those things of

Art which have been the joy of my life shall not

be consigned to the cold tomb of a museum, and

subjected to the stupid glance of the careless

passer-by; but I require that they shall all be

dispersed under the hammer of the auctioneer,

so that the pleasure which the acquiring of each

one has given to me, shall be given again, in

each case, to some inheritor of my own tastes.”

From the will of Edmond de Goncourt, 1896

“…helpful summaries about care of collections,

security, and tax pitfalls.

”

– The Philadelphia Inquirer

“Minimize inheritance headaches and heartaches…

Experts’ tips for winning encounters with coin

dealers and the IRS.

”

– The Centinel

“…your heirs deserve knowledge and truth about your

holdings. Your use of this book should help, and—especially

for those of you with a valuable collection—a copy for your heirs would

not be amiss.

”

– COINage Coin Collector's Yearbook

“…deserves to be in the hands of any collector of coins,

serious or frivolous. It gives excellent advice for maintaining records, caring

for, safeguarding and for disposing of a numismatic collection. Dealers

would do well to recommend it to their customers –

after reading it themselves.

”

– Col. Bill Murray, Noted Columnist

“

…by far the best book written on how to ensure that your

coin collection is never sold for pennies on the dollar.

A book I highly recommend to all my clients.

”

– Dale Williams, Professional Numismatist

“How comprehensive is this book? I put it with my collection and told

my daughter Sara to read it when it comes to

handling my coin estate.

”

– Fred Weinberg, Past President of the Professional

Numismatists Guild

“In summary, this small paperback book contains a wealth of information

for collectors at all levels of the hobby. You can read it over a weekend, and

I would urge you to share it with your potential heirs. If nothing else,

place a copy on top of your collection, with important (to you)

sections highlighted. Your heirs will be glad you did.

”

– Mike Thorne, Writer. Coins Magazine

Estate Planning Made Easy, June 3, 2009

“Must reading for most of today’s collectors.”

– Coins Magazine

“To those of us in the business of helping remove obstacles from the

financial paths of clients, The Collector’s Handbook is a valuable resource I

would think that any advisor would want to have in their library.

”

- Jeffrey Turner, Certified Financial Planner™ professional,

President of Chattanooga Estate Planning Council

“A wealth of sound and practical information, written in a clear and

concise manner. Must reading for every collector!

”

– Leroy Van Allen, Numismatic Author and Morgan Dollar Expert

“…It is for everyone in numismatics and is even a ‘must have’ for those

who may become heirs, but lack the know-how of what to do next. Senior

citizens, like myself, will be especially happy with the interesting stories of

estates, etc. … EVERYONE should

own it if coins are involved in their activities.

I highly recommend this book…

”

– Lee Martin, Founder of the Numismatic Literary Guild

The first edition of this book, titled

The Rare Coin Estate Handbook, received many of

the comments and endorsements listed above, and

won the Robert Friedberg Award from the Professional

Numismatists Guild: Best Numismatic Book of the Year.

Now rewritten for all forms of art, jewelry

and collectibles, the 7th Edition of The Collector’s

Handbook received the “Extraordinary Merit” award

from the Numismatic Literary Guild in 2013

.

Front Cover:

Rolex, Very Fine and Rare 14k Gold

Ref. 6241 “Paul Newman” Cosmograph

Daytona “John Player Special”, Circa 1969

Sold for $804,500 | October 2018

Fr. 1202 $100 1882 Gold Certificate

PMG Very Fine 30

Sold for $750,000 | October 2022

1885 Trade Dollar

Finest of Five Examples Known

Sold for $3,960,000 | January 2019

Contents

Foreword xvii

Acknowledgements ixxi

Introduction ixxiii

PART 1: ADMINISTERING YOUR COLLECTION

Chapter 1 – Recordkeeping 3

Chapter 2 – Caring for Your Collection 9

Chapter 3 – Safeguarding Your Collection 21

PART 2: ESTATE PLANNING FOR YOUR COLLECTION

Chapter 4 – All in the Family 35

Chapter 5 – Division of Assets 49

Chapter 6 – Should You Bequeath Your Collection,

or Sell During Your Lifetime? 59

Chapter 7 – Collectibles, Estate Planning and Taxes 71

Chapter 8 – Collectibles and Charitable Giving 93

PART 3: EVALUATING YOUR COLLECTION

Chapter 9 – Third-Party Authentication and Grading 109

Chapter 10 – Having Your Collection Appraised 115

PART 4: SELLING YOUR COLLECTION

Chapter 11 – Selling Your Collection Through Outright Sale 129

Chapter 12 – Selling Your Collectibles Through an Agent 137

Chapter 13 – Selling Your Collection at Auction 147

Chapter 14 – Etiquette & Tips 159

APPENDICES

Appendix A – Organizations for Collectors 170

Appendix B – Insurance Companies Offering Specialized

Coverage for Collectors 172

Appendix C – Third-Party Grading Services 174

Appendix D – Selected Publications for Collectors 175

1861 $20 Paquet

MS67 PCGS. CAC

Sold for $7,200,000 | August 2021

Foreword

WHY WE COLLECT THINGS

M

y friend John Jay Pittman did not start out a wealthy man. Slowly

and with dedication, he assembled an incredible coin collection.

He accomplished this through relentless study and at the cost of

a significant portion of his limited income as a middle manager for

Eastman Kodak, supplemented by his wife’s income as a schoolteacher.

In 1954, John mortgaged the family house to travel to Egypt and bid on

coins at the King Farouk Collection auction, and he demanded many

more sacrifices of himself and his family over the decades. He passed

away in 1996 with no apparent regrets, and his long-suffering family

deservingly reaped the rewards of his efforts when the collection was

sold at auction for more than $30 million.

But why did he do it?

On our website, HA.com, we auction many different types of collectibles;

what started in 1976 as a numismatics business is now the largest

auction house founded in America — with annual sales exceeding

$1.45 billion in 2022 in categories ranging from meteorites to Hermès

handbags. Most of our more than 1.75 million registered client/bidders

collect in more than one area, which we can determine through online

surveys, free catalog subscriptions, and multiple drawings for prizes

throughout the year. Our clients pursue many different collecting areas,

and for many different reasons.

One fervent collector of historical documents refers to his passion as “a

genetic defect.” The founding father of psychoanalysis Sigmund Freud,

a renowned collector in his own right, thought that collecting was really

about sex: “The core of paranoia is the detachment of the libido from

objects,” he wrote in 1908. “A reverse course is taken by the collector

who directs his surplus libido into an inanimate object: a love of things.”

But more likely it’s basic human instinct: a survival advantage amplified

by eons of natural selection. Those of our ancient ancestors who

managed to accumulate scarce objects may have been more likely to

survive long enough to bear offspring—and people who owned shiny

objects may have had an easier time attracting mates. Even today,

wealth correlates with longer life expectancy; and could any form of

wealth be more primal than scarce, tangible objects?

While the thrill of the hunt and a passion for objects — whether it’s

Lithuanian first-day covers or Alberto Vargas paintings — is what

motivates and excites collectors, there are, alas, some housekeeping

chores that must be tended to in order to assure that you derive the

most benefit from your collection. Whether that means minimizing

your tax burden, ensuring that your objects are safe from intruders, or

maximizing your collection’s value for your heirs, a little attention now

can save you a massive headache later. It also will help you to get as

much as you can out of the top 10 reasons Heritage Auctions’ clients

tell us that they collect (not in order):

1. Knowledge and learning

2. Relaxation and stress reduction

3. Personal pleasure

4. Social interaction with fellow collectors

5. Competitive challenge

6. Public recognition

7. Altruism (leaving a collection to a museum or non-profit organization)

8. The desire to control, possess and bring order to something

9. Nostalgia and/or a connection to history

10. Accumulation and diversification of wealth

Like Pittman, Robert Lesser is a true collector, but also a visionary with

the ability to change his own course. He funded his later collections

by assembling a fine collection of Disney memorabilia before it was

popular, and later sold it for a seven-figure sum after the collecting

world had come to appreciate it. Long before others discovered Disney

memorabilia’s now-obvious appeal, Lesser assembled preeminent

collections of toy robots—museum exhibitions of his collection have

attracted sell-out crowds with waiting lines stretching over city blocks—

and pulp magazine cover paintings.

Many non-acquisitive pastimes provide similar levels of satisfaction,

knowledge and recognition, along with the other benefits of collecting.

But unlike home gardeners and tropical fish enthusiasts, serious

collectors of rare objects will very often find that they have created

substantial wealth—especially if they recognize this as one of the goals

of their collections.

Whatever your motivation for collecting, this book will make you a more

intelligent collector. Following the advice of our expert team of industry

professionals, accountants, and lawyers will help you enjoy your

collection more and ensure that your heirs can benefit from your legacy.

James L. Halperin

Co-Chairman, Heritage Auctions

Birger Sandzén (American, 1871-1954)

Lake at Sunset, Colorado, 1921

Oil on canvas

80 x 60 inches

Sold for $670,000 | May 2016

PROPERTY FROM A MIDWESTERN INSTITUTION

WORLD AUCTION RECORD FOR THE ARTIST

Acknowledgements

W

riting a book is like forming a great collection: many people

contribute in many different ways. While collecting, we build

on the work of dealers, auction firms, friends old and new, and those

dedicated authors whose reference books line our shelves. It is no

different here. We offer many thanks to the following for their assistance

during the preparation of this work:

Steve Ivy, Bob Korver, Burnett Marus, Steve Roach, Matthew S. Wilcox,

Will Rossman, Richard Freeland, Noah Fleisher, Mark Van Winkle, Mark

Masat, Brian Keagy, Michelle Castro, Taylor Strander, Deborah Daly,

Steve Lansdale, Brett Flagg, Chris Britton, Jonathan Fehr, and Emily

Murrah.

Henrietta Rae (British, 1859-1928)

Psyche before the throne of Venus, 1894

Oil on canvas

76-1/2 x 120 inches

Sold for $324,500 | May 2017

PROPERTY OF A TEXAS MUSEUM

Charlton Heston “Moses”

Signature Robe from

The Ten Commandments

(Paramount, 1956).

Sold for $447,000 | December 2022

Introduction

Collectors know the joy that comes from being surrounded by

wonderful objects. The study of the pieces in our collections adds

depth, color, and richness to our lives. We also know that a collection

is intensely personal, and thus can be infrequently shared with others.

You know your collection intimately. More than likely, your heirs do not.

Heritage’s Appraisal Services team once encountered a collector who

showed up at an appraisal fair with a meticulously kept book detailing

every object she had in her collection: when she bought it, who she

bought it from, what she paid for it and everything she knew about it.

Such meticulousness is rare. All too often, the chaos left behind by

collectors leaves their descendants with a tax burden that could have

been avoided, along with endless amounts of paperwork, legal fees,

wrangling and other drama.

The principals at Heritage Auctions have written this book to provide

information essential to collectors organizing their collections, advisors

working with these collections and heirs who have inherited collections.

Organizations that have received collections as donations also will

benefit from this book.

1947 Jackie Robinson Game Worn

Brooklyn Dodgers Rookie “Color

Barrier” Jersey, MEARS A9 – Photo

Matched with Family Provenance.

Sold for $2,050,000 | November 2017

Administering Your Collection

PART ONE

2

Action Comics #1 Rocket Copy (DC, 1938)

CGC FN 6.0 White pages.

Sold for $3,180,000 | January 2022

3

1

Recordkeeping

Mother: “This is the fertility vase of the Ndebele tribe.

Does that mean anything to you?”

Daughter: “No?” – From the 2004 movie Mean Girls

W

e once appraised a home with six federal mahogany chests of

drawers. The deceased’s estate plan stipulated that a certain heir

should receive “the good one.” While the collector certainly understood

which of the six was “the good one,” he was not there to help—and the

executor and attorney had no idea what he was talking about.

In another case involving a room full of paintings, the estate plan

provided instructions for a certain painting: “the one with the

banana.” The heirs, executor and attorney all looked to us to

determine which painting represented a banana. Unfortunately, it was

impossible to find any resemblance in the group because all of the

pieces were entirely abstract.

These situations sound like vaudeville skits, but both really happened—

and they could have been avoided if the collections had been

inventoried and numbered. Even when the terms of the will specify

the exact location of an item in an effort to distinguish it from similar

ones, it may not be enough. As collectors relocate, downsize, or simply

rearrange their homes, the location of an item may change. Assigning

a unique identification number does not change and therefore remains

the only reliable method of inventorying items that we recommend.

Documenting what you own by writing it down by hand or in a

printable listing is the most fundamental part of intelligent collections

management. For historians and scholars, original handwritten

inventories have proved to be invaluable tools with tasks as varied as

accurately restoring a historic building, understanding a major battle or

reconstructing a seminal art collection. The oldest known examples of

4

writing in Europe are lists of commodities found in the storerooms of

palaces in Ancient Greece. Modern technology has made the process

easier than ever, and all collectors must understand the importance

of proper documentation: It will be essential to your relationships with

insurers, dealers, auction houses, the IRS and your heirs. Inputting and

documenting each new acquisition as you proceed makes this process

manageable.

The first question to answer: handwritten or digital? While it’s possible

to maintain meticulous paper records, our preference is that you use

a computer program that is properly backed up in case of computer

issues by a simple Excel spreadsheet, a Quicken list, a personal

website, handwritten note cards, the MyCollection™ feature on the

Heritage website or even some private software options like Collectify

®

.

While doing anything at all will put you far ahead of most collectors,

the more detailed, uniform and decipherable your inventory method

is to the novice eye, the better. Your inventory system must be self-

explanatory because you may not be there to explain it. Highly

specialized jargon, abbreviations and personal notation codes should

be avoided.

HA.com has a free feature called

MyCollection

™

which allows the

collector to keep a private record. For

coin and comic collectors, the feature

is particularly useful because you will

be able to quickly see market values

for your pieces. HA.com/MyCollection

5

Different types of collectible property require different information fields,

but a general checklist might appear as follows:

• Object type: What is it?

• Title: Does it have a known or descriptive title?

• Maker: Is the creator known?

• Medium: What’s it made of?

• Size: Dimensions and/or weight?

• Inscriptions: Is anything written on it?

• Signature: Did the maker sign it? Where and how?

• Subject: Is there a representation on the item?

• Date: When was it made?

• Manner of Acquisition: How did you obtain it? (Auction,

yard sale, etc.)

• Cost/Date of Acquisition: What did you pay for it? When

did you buy it?

• Location: Where is the item? A safe deposit box, file cabinet, on loan to

local museum? Specifics are important; if it’s in a binder, say where the

binder is located. For example, if a painting is in the living room above

the sofa, note the location and the date the information was entered.

• Provenance: What is the item’s history of ownership?

• Special Notes: Anything else you would want an heir to know

about it? More information is always better. For example, has it been

exhibited or published in a catalog?

• Photographs: Take a picture of each item in your collection.

• File Folder: Keep or scan copies of all relevant documentation:

invoices, auction catalog entries, bills of lading, etc.

• Inventory Number: See next page.

6

The Art of Inventory Control: Tying it all Together

Even the most accurate inventory documentation can end up useless

if it is not “tied” to actual objects. Tying data to an object involves

giving each item a unique inventory number with which it is tagged or

marked, and then cross-referencing that tag with the written inventory

entry and a photograph.

A useful collection inventory number system should begin with the year

of acquisition, followed by an individual item number. For instance,

2016.001 would be reserved for the first piece acquired in the year

2016. This is the inventorying system used by museums, and with good

reason, since it is both predictable and easy to follow.

Tiffany Studios Leaded Glass and Gilt Bronze

Drophead Dragonfly Table Lamp, circa 1910.

Sold for $275,000 | April 2022

Property from the Collection of Jeep & Carla Harned

7

It is critical that the object, photograph, number tag and master

inventory do not become separated. String tags and sticker labels

often are used when safe to apply, and they can be removed easily;

of course, this is easier with some objects than others. Museums

generally look for a part of the object that is out of sight when on

display — usually the bottom or back — and put a small strip of varnish

down. After it dries, the ID number is written in ink, and when that

dries, another coat of varnish is placed over the number. For paintings,

only the back stretchers or frames should be marked with the work’s

unique ID number. Each type of property presents its own numbering

challenges. Often, the only solution is to tag the box or plastic sleeve

in which an object is stored, but this is not ideal since boxes and

sleeves can be switched. Today, bar code technology, microchips and

even radioactive isotope staining have enhanced our tagging options.

Do your research to see what’s out there and what’s best for your

particular collection. Ask dealers who specialize in the category, and

seek out the advice of societies that serve collectors. Find out what the

best practices are for each category you collect. A key principle is that

a tagging or numbering system should never damage an item.

When photographing an object, write its unique ID number on a piece

of paper and place it in the picture field so that the photograph actually

displays the object and the number. That way, any loose photograph

can be easily identified. Most large collections contain near-identical or

duplicate items that, to the untrained eye, may appear indistinguishable

from one another, even though values can vary widely. Many coin

collections have been spent by heirs who were unaware that the coins

had value to collectors, and this fate could be avoided with proper

identification.

You will thank yourself in the long run, as will everyone involved!

Finally, maintain a second copy of your complete inventory, including

photographs, in a different location from the collection itself. Safe

deposit boxes in banks are recommended, and it also is a good idea to

have an electronic copy stored on a backup disc and/or online.

When you sell or otherwise remove an item from your collection, make

certain that it is noted clearly in your inventory—unless, of course, you

despise your heirs and wish to send them on a decades-long hunt for

a valuable object you sold 20 years ago.

8

Norman Rockwell (American, 1894-1978) Home for

Thanksgiving, The Saturday Evening Post cover,

November 24, 1945

Sold for $4,305,000 | November 2021

Property from the E.M. Connor Post #193 American Legion,

Winchendon, Massachusetts, Being Sold To Benefit

Operational and Building Funds

9

2

Caring For Your Collection

“He that thinks he can afford to be negligent is not far

from being poor.” – Samuel Johnson

“Never neglect details.” – Colin Powell

A

fter being created, all objects age; they act and react over time in

accordance with their physical and chemical properties, combined

with the environment in which they’re stored. Metals mineralize naturally.

Paper collectibles are photo-chemically changed when exposed to

the light necessary for us to enjoy them. Soft fabrics become brittle

and hard substances become pliable. While some changes may take

centuries, others take only minutes — and the goal of the collector, like

that of the museum conservator or a Hollywood actor, should be to

minimize damage and slow the aging process.

Human contact is the leading culprit of wear and deterioration. Use of

an object, whether it is a circulated coin or toy train, takes a toll. For

many items, use reduces value, but in others, it increases it. A baseball

glove worn out by 10 years of continued use by Ted Williams has

greater value because of its history, regardless of the physical condition

that results from aging. For baseball cards, part of the value comes

from their ability to withstand the long odds of survival: cards cut from

recently discovered sheets are seen as second-class citizens. Each

category of collectible has its own standard that governs the effects of

original use on value. Once an object has left its original environment

and becomes a cultural collectible, the new owners must endeavor to

preserve its condition.

Human touch can harm objects physically and chemically through

the acids in perspiration. After that, sunlight and moisture are the

two greatest destroyers of most collections. Another serious threat is

contact with reactive materials such as a cleansing or sealing agent.

10

Human Contact

Avoiding direct contact with objects, if possible, is best.

• Coins can be placed in sealed inert capsules, which protect

them from both physical and chemical harm. If outside a capsule,

a coin should only be grasped by its edge, avoiding contact with

its two sides. Paintings should be framed using archival materials;

prints should be glazed, then framed. Grasp only the frames

when examining. Comics should be placed in Mylar sleeves or

encapsulated by Certiﬁed Guaranty Company (CGC).

• White cotton gloves should be worn when handling anything

directly, but be aware that your grip may be affected by wearing

gloves. When examining a valuable ceramic lidded jar, place

one hand on the lid and the other under the base, so that the

lid does not fall off while being moved. Statues in any medium

should never be grasped by their extending parts (for instance,

the arms or legs of ﬁgural works).

Sunlight and Artiﬁcial Light

If you have ever noticed a rich dark mahogany table bleached off-white

and cracked because of its location near a window, or a once-vibrant

watercolor painting that has faded dramatically, you have witnessed the

powerful effect of light on objects. Prolonged exposure to ultraviolet light

may destroy valuable furniture, paintings, photographs, books

and textiles.

If you wish to keep your collections in plain view, certain steps should

be taken to minimize light damage:

• Purchase windows that ﬁlter UV light.

• Place UV ﬁlter sleeves over ﬂuorescent lighting.

• Glaze framed items with UV ﬁltering acrylic, not glass (not

appropriate for all media).

• Hang curtains and blinds to ﬁlter sunlight.

• Never position a light-sensitive object in direct sunlight.

• Keep sensitive works covered with protective cloth; remove only

when viewing.

11

1909 T206 Sweet Caporal

Honus Wagner

(The Garagiola Wagner)

SGC Authentic.

Sold for $2,520,000

February 2021

12

[DECLARATION OF INDEPENDENCE]. Folio

broadside, [Salem, MA: Ezekiel Russell

(or John Rogers at Russell’s printing office),

circa July 14-16, 1776].

Sold for $2,895,000 | July 2023

13

Water and Moisture

“For my birthday I got a humidifier and a dehumidifier. I put

them in the same room and let them fight it out.” – Steven Wright

Most water damage is caused not by rain, burst pipes or ﬂoods, but by

humidity. Organic materials deteriorate in humid conditions; mold and

mildew can grow, and metals mineralize at a faster rate.

The recommended relative humidity (RH) for your collections should be

determined (check with a dealer or society that specializes in your ﬁeld),

after which you need to take the necessary steps to protect your collections

from air conditioning, humidifying and dehumidifying. It is important to avoid

large ﬂuctuations in RH and temperature, as these ﬂuctuations may cause

serious stress to any object. Here are the recommended storage conditions

for a few of our most popular categories:

• Books: 68°F to 72°F, with 40 to 50 percent relative humidity.

• Comic Books: 50°F to 65°F — and it’s important to keep the

temperature consistent. 40 to 60 percent relative humidity is

recommended.

• Coins (and other metals): The biggest concern here is relative

humidity. Below 30 percent is ideal.

• Historic Paper: The Preservation Directorate at The Library

of Congress says it stores documents at 50°F with relative

humidity of 50 percent.

• Paintings: 68°F is recommended, with relatively humidity at

around 50 percent.

• Stamps: 65°F and 50 percent relative humidity is the

recommendation from Linn’s Stamp News.

Reactive Materials

It is not unusual to ﬁnd 19th-century prints on pulp paper in their original

frames, with acid-rich mats ﬁxed with glued tape, backed by thin planks

of pine and secured with iron-alloy nails. We since have learned a great

deal about reactive chemistry and understand that the old practices are

truly bad.

The acid in the mat leaks out to the print, causing discoloration or

mat burn. Other acids in the adhesive tape do the same. The wood

14

Retro Raymond Yard Citrine,

Gold Jewelry Suite

Sold for $250,000 | May 2022

Property from the Cary M. Maguire Estate, Dallas, Texas

This suite was

commissioned by Joan

Crawford from famed

jeweler Raymond Yard. After

receiving it, she wore it in

the film Where Ladies Meet

(1941) and in a print ad for

Royal Crown Cola.

15

backer and frame, which are designed to protect the print, are full of

acetic acid, formic acid, formaldehyde and other chemicals that can do

serious damage. Finally, the iron nails reacting to the wood and moist air

corrode quickly, harming anything in close proximity.

Today, even our urban, industrialized air contains sulfur dioxide and

nitrogen dioxide that can create an acidic environment in the presence

of elevated relative humidity.

It is imperative that collectors learn what conditions will affect their

particular collections. Outdoor marble statuary will not be harmed

greatly by sunlight or termites, but acid rain will do the job quickly unless

a protective wax is applied regularly. Some modern art is created with

materials that are meant to change over time, and that change is part of

the artist’s intention. Every category of art, antiques and collectibles has

its own preservation requirements.

Educate Yourself

Don’t assume the frames, wrappers, backboards, plastic sleeves or

other materials that house your artworks or collectibles at the time of

purchase are the safest ones available for the continued health of your

acquisitions. The fact that many collectibles have appreciated in value

over time means that a costlier means of preservation may be more

justiﬁed today than when an item originally was sold.

Caring for your collection properly requires learning the safest and most

updated methods available for viewing, displaying and storing items.

Each object will have unique issues relevant to its own material, form

and condition.

Museum and conservation information is readily available in books

and online. A good reference is Conservation Concerns: A Guide for

Collectors and Curators, edited by Konstanze Bachman. For more

advice on issues surrounding storage and preservation, check with

reputable dealers, auctioneers, and collectors’ societies.

16

Most collectors get to a point at which they decide to downsize, and this

includes celebrities. Celebrity connections have the ability to increase

the value of otherwise ordinary items. Sylvester Stallone called Heritage

Auctions when he decided to sell items from his personal collection that

spanned his long career in Hollywood.

Stallone wanted to be part of the sales process and stayed through

several hours of the first day’s bidding, interacting with fans and posing

for pictures. “The memorabilia I have has been used and been a part of

my life for — kind of hard to admit this— well over 40 years,” Stallone

said. “It has been in my possession and I have fond memories attached

to just about every object. There comes a point, though, when I think that

I’ve used these objects enough and have created enough memories that

I can let them go.”

Heritage’s sale, titled “Stallone – The Auction” took place Dec. 18-20,

2015, and included dozens of his most iconic costumes, props and

personal items. Some of the items included the leather jacket that

Stallone wore as a costume in the first Rocky movie in 1976, which

doubled its estimate when it sold for $149,000. On the jacket, Stallone

reminisced, “I remember when I bought this jacket. It was obviously quite

a few years before I ever even thought about Rocky, before Rocky was

even an idea. This is what I would wear in my everyday life, and when

the time came to do the movie, we didn’t have a budget where we could

afford an original wardrobe so I thought, ‘Why don’t I just wear the things

that I think Rocky would wear, clothes from my real life?’ So, I went in

my closet, pulled out this jacket. It’s one of those unique times where life

imitates art, art imitates reality. This jacket was used in several of the films

and it really established Rocky as kind of mythical, dark knight character.

You knew something special was going to happen with this individual

because he just looked different — and this black leather jacket set the

tone for the rest of the series.”

A used leather jacket that would be worth perhaps $30 in a secondhand

store, described in the auction catalog as a “Small collar, five button front

closure, two front pockets, two distinct pleats at shoulders, black faux

Star Power

The Auction

Stallone

17

fur zip-out lining,” became worth nearly $150,000 due to its connection

to a great actor and a classic film. Stallone helped Heritage in crafting

the lot descriptions, adding priceless first-hand anecdotes that likely

encouraged the robust bidding. In total, 13 bidders competed for the lot,

with the winning bid being placed online at HA Live.

The Stallone sale realized more than $3 million. Beyond sharing his

personal history with thousands of fans, Stallone donated a portion of the

proceeds to various charities that assist military veterans and wounded

servicemen and servicewomen as well as The Motion Picture and TV

Country House and Hospital.

A Sylvester Stallone

Personal Black Leather

Jacket from “Rocky.”

Sold for $149,000 | December 2015

Stallone

18

Mary Anne Sammons Cree

The Estate Gift of

Fancy Intense Yellow Diamond Ring

Sold for $591,000

D

allas, Texas native Mary Anne Sammons Cree quietly and powerfully

supported many passions during her lifetime, often focusing on

opportunities for her community to experience the wonder of the

arts and the natural world. So generous was Cree that even after her

passing, she continued to give back to her beloved hometown.

In September 2022, Heritage Auctions offered more than 125 pieces

from Cree’s extraordinary jewelry collection as the centerpiece of our

Fall Fine Jewelry Signature

®

Auction. Proceeds from the sale of Cree’s

jewelry supported The Rosine Fund of Communities Foundation of

Texas, so named for Mary Anne’s mother, from whom she inherited her

spirit of giving.

“As a Dallas-based auction house, it was kismet for Heritage Auctions

to partner with Communities Foundation of Texas to present Mary

Anne’s stunning jewelry collection to collectors worldwide,” says Michelle

Castro, Vice President of Trusts & Estates.

19

David Webb Jewelry Suite

Sold for $47,500

Fancy Yellow Diamond Earrings

Sold for $225,000

20

1787 DBLN New York-Style Brasher

Doubloon, EB on Wing,

MS65★ NGC. CAC. W-5840.

Sold for $9,360,000 | January 2021

21

3

Safeguarding Your Collection

“If you didn’t have so much stuff, you wouldn’t need a

house. You could just walk around all the time. A house is

just a pile of stuff with a cover on it.” – George Carlin

C

rimes against property are on the rise, and the reasons that

fine art, antiques and collectibles are great investments are the

same reasons they’re great targets for thieves. The current arrest and

conviction rate is abysmal, and the odds of recovering stolen goods

are even lower. With budget constraints forcing law enforcement to

deprioritize property crimes, the outlook for a reversal in that trend

is not good. The only solution is to do what you can to protect your

collection against criminals — and make sure that it is properly insured

in the event that you are the victim of a crime (or natural disaster).

Security vs. Access

Most collectors want their treasures close at hand to study and enjoy

— even though that is a suboptimal loss prevention strategy.

To alleviate this, write your own personal security plan and include

these elements:

• Security

Your collection is at risk from theft, fire, water damage and other

natural disasters. If you are going to have objects of substantial value

at your residence, you should consider several proactive measures

to protect them.

• Monitored Security System

A monitored system is at the core of any security plan. This

includes both theft and fire alarms that are monitored externally

and immediately reported directly to police and fire departments

when triggered. Hardware can be installed for a few hundred to a

few thousand dollars, and monitoring involves a monthly expense,

22

currently around $25 to $75. A monitored security system sends

most burglars looking for easier targets and puts the more daring

ones on the clock. Once the system perimeter is breached, the

burglar has only the response time to grab what he can and attempt

an escape. This might seem like a pain and a substantial investment,

but there are advantages. According to the Insurance Information

Institute, the average homeowner’s insurance discount provided

based on the presence of a monitored security system is between

15 and 20 percent; according to the Electronic Security Association,

the average loss on a home with a system is $3,266, compared

with $5,343 for an unprotected home. But wait! There’s more!

You’ll also be protecting your neighborhood as a whole: A 2009

study out of the School of Criminal Justice at Rutgers University

found that the higher the percentage of homes in a neighborhood

that have security systems, the fewer break-ins occur in that

neighborhood — providing a benefit even to residents who don’t

have a security system.

• Home Safe

A safe can be an excellent way to protect valuables and important

documents from theft or damage, but choosing one that meets your

needs can be challenging. Safes are rated on their burglary and fire

resistance. Some safes offer significant protection against burglary

but offer no fire protection. Others may be able to withstand heat for

hours but are not rated against attacks from power tools.

The cost of a safe is primarily a function of its protection ratings

and size. The larger a safe is and the more protection it offers, the

more expensive it will be. Additionally, insurance companies may

have specific requirements for a home safe. A reputable safe dealer

should be able to help you select a model that meets your budget,

protection needs, physical space, and any applicable insurance

requirements.

• Deterrent Practices

There are other actions that reduce the risk of a successful burglary.

Always leave the impression that someone is at home. This can be

accomplished in part by remembering to have your paper and mail

held while you are out of town and by placing one or more of your

lights on timers. “Beware of Dog” signs are helpful in warding off

potential burglars and also can reduce your Halloween expenditures.

23

Abraham Lincoln: Outstanding

Signed Carte-de-Visite.

Sold for $175,000 | September 2016

24

• Camouflaging Valuables

Most people are predictable, and experienced burglars know all the

“good” hiding places. Typically, most people keep their valuables

in the master bedroom and home office. Guess where burglars go

first? So, try to avoid these typical hiding spots and leave decoys.

One gentleman we know has numerous coin albums (filled with

pocket change) in plain sight on the bookshelves. Another has an

old safe that is heavy but moveable. It resides in the corner of his

home office and contains absolutely nothing. Its predecessor was

removed in a burglary during which the thief left behind several

thousand dollars’ worth of electronics because he thought the

safe was the jackpot. He now has a monitored security system

and modern wall safe, but still keeps a decoy as a reminder of the

importance of security and the burglar who was the recipient of

nothing but an empty box (and perhaps a hernia). If you don’t own a

safe, small valuables are best hidden in a false outlet with an object

plugged into it. A collection of small items should be spread over

several non-obvious locations.

Off-Site Storage & Transport

The primary off-site storage option is a safe deposit box at either

a bank or private vault. If you can find a location close to home

or work, the inconvenience factor can be minimized. Sites with

weekend access offer a major advantage. Remember that while safe

deposit boxes offer secure storage, vigilance is still important. Here

are a few storage and security guidelines you need to remember

and follow:

• Rent a box that is large enough to hold everything easily.

• Use a desiccant such as silica gel to remove any moisture, and

change it regularly.

• Never forget that your greatest security danger is in transporting the

collectibles to and from the box. Use a nondescript container to hold

them, and try not to carry too much weight at once.

• Have someone drive you to the location, or, if you must drive

yourself, park as close to the entrance as possible to minimize your

time on the street with the valuables.

•

Avoid establishing a pattern in picking up or dropping off your collection.

25

• Be aware of your surroundings when transporting your collectibles.

Check your rearview mirror frequently, and if you believe you’re being

followed, do not drive directly to your destination. Make several

detours that do not follow any logical traffic pattern and see if you

are able to lose the suspect vehicle. Know the location of the closest

police station, and if you can’t lose your stalker, drive there directly.

We know this sounds a little like a made-for-TV movie, but

it’s important.

• Carry a cell phone with you when transporting valuables. A

frightening robbery technique is to rear-end a vehicle and then rob

the driver when he or she exits to assess the damage and exchange

insurance information. You will have to use your judgment in this

situation, but if you are carrying valuables and are rear-ended,

you should remain in the car and call 911. Don’t hesitate to tell the

operator that you are carrying valuables and are concerned about the

possibility of robbery. If you really believe that it is a setup, don’t stop

— call 911 and explain the situation while driving to the police station.

With their steady flow of people, noise and confusion, airports have

also become a favorite hub for thieves. The usual method is the

snatch-and-grab; the thief targets someone who appears distracted,

grabs the briefcase or bag and melts into the crowd.

A variation is the use of teams of criminals located where baggage is

being unloaded at the curb. A few of the thieves distract the victim while

others grab the bags, after

which all of them make their

escape in a waiting vehicle.

Hermès Extraordinary 30cm Matte

White Himalayan Niloticus Crocodile

Birkin Bag with Palladium Hardware.

Sold for $140,000 | September 2021

26

Your only protection is constant vigilance. You should always either

have a grip or your foot on any case containing valuables.

Some people carry a loud whistle when transporting valuables. If

someone attempts to grab a bag and you start blowing the whistle, the

thief is put on the defensive. Everyone else in the area is confused or

startled by the noise and the thief loses the camouflage of the crowd.

Shipping

First and foremost, do not attach anything to the outside of the

package that would hint at its contents. When Ty Inc., the company

behind Beanie Babies, realized that boxes were being lost during

shipping in huge quantities at the height of that mania, it made a

simple change by removing its logo from the boxes. Consequently,

theft shrank dramatically. If a package contains any identifying words,

such as “coins,” in the mailing address or on the outer wrapping, it

makes the contents of that package more appealing to thieves.

Pack the items securely so that they do not rattle. Loose spaces

(such as in tubes) should be filled. Styrofoam “peanuts” are good for

this purpose. Make sure that your shipping box is strong enough for

the included weight, then bind it with strapping tape. If you are using

Registered Mail (the preferred method for most collectors to ship small

packages containing valuable items), the Post Office has a requirement

that all access seams be sealed with an approved paper tape.

Including the word “fragile” in large letters on the package may prevent

rough handling by carriers.

Method of shipment involves a decision that weighs value, risk and

cost. USPS First Class or Priority Mail with insurance is the most

cost-effective method for packages up to $500 in value. The rate of

loss has dropped considerably over the last decade, making this

a reasonable option for inexpensive items that can be replaced.

Above the $500 value, Registered Mail with Postal Insurance is

both cost-effective and extremely safe. The one caveat is that the

insurance maximum for registered mail is $50,000. The Post Office

requires you to indicate if the contents exceed that amount but it

will not pay more than $50,000 on a claim. If the value exceeds

that amount, you will need to send multiple packages or obtain

supplemental private insurance.

27

FedEx, UPS and other private shippers have become popular in recent

years, offering fast, guaranteed delivery with a high success rate. They

also offer some insurance options, but rare coins and certain other

collectibles are specifically excluded. You will need to obtain private

insurance coverage if you use one of these shippers, or you may

request that the other party insures the shipment if there is sufficient

coverage available and a shipper account.

Insurance

No matter how many security measures you employ to protect your

collection, you will also need to acquire suitable insurance to protect

yourself. This can be a complicated area, as insurance companies

write policies in a language all their own. As a collector, you need to

be especially mindful of homeowner’s insurance because you likely will

require a policy that differs from a standard one.

A Tiffany & Co. Partial Gilt Silver Punch Bowl and Ladle Driving Trophy, New York, 1881

Sold for $118,750 | November 2020

American Presentation and Trophy Silver from the Collection of J.D. Parks

28

Coins hidden in fake plumbing and stored in a bank box that likely

hadn’t been opened in nearly a century were two of the tales Heritage

Auctions President Greg Rohan told collectors attending his presentation

on “Major Collections We’ve Auctioned – The Back Story” at the Central

States convention.

After Jules Reiver, noted collector, researcher and writer, died in 2004 at

87, his family contracted with another dealer to sell his collection. Rohan

said, “We were brought in. I went out to their house. It was a very modest

house. I had been there before, and I remembered that Jules had to go

under the kitchen sink to get coins out. He had them in fake pipes under

the sink. So we got the coins that were at the house and went to the bank

and got the coins that were at the bank.”

Reiver’s wife, Iona, who died in 2017 at 97, said her husband had always

said his collection was worth $1 million. Heritage estimated it would bring

$6 million to $7 million, a figure, Rohan said, he thought the family took

with a grain of salt. The collection sold for more than $8 million. After the

collection was sold, Rohan said Mrs. Reiver told him, “I feel just like the

Beverly Hillbillies.”

In 2015, Rohan said, Heritage was contacted by an art auction house

about a coin collection that had been put together between 1850 and

1930 by the Rev. James G .K. McClure, pastor of First Presbyterian

Church in Lake Forest, Ill., for 25 years. The coins, housed in custom

cases, had sat largely untouched in a bank safe deposit box since

McClure’s death in 1932. “Boy, did that get my attention,” Rohan said.

“To see the coins that had been untouched since that time was one of

the most extraordinary experiences.”

The collection was notable for its depth, state of preservation and the way

it was accumulated. Rohan said, “Rev. McClure got coins at a face value

at the bank. There were a few times where there were coins that were

harder to get, proof coins that he got as gifts from parishioners. He paid

maybe a few dollars for some.

“Seeing his Walking Liberty halves, all of which he got at the bank at

the time of circulation – the 1921, ‘21-D, ‘21-S. These coins were of

Nearly Century-Old Safe Box

Coins Stored in Fake Plumbing,

29

Nearly Century-Old Safe Box

unbelievable quality, unbelievable. ... I would

look at rows of coins that were taken out of

circulation that were worth just a few dollars

each and then come to one that was worth a

hundred thousand dollars.”

He said a Chicago-area coin dealer had offered

the family $840,000 for the collection. “Being

intelligent and prudent people, they decided to

get another opinion,” he said. “Our estimate was

$3 million to 3.5 million.” The collection sold for

$4.5 million at auction in 2016.

The Gene Gardner collection, another collection

Heritage handled, sold for $52.8 million in four sales in 2014 and 2015.

Rohan, who developed a personal friendship with Gardner before his

death in 2016 at age 80, said Eugene Herr Gardner Sr. was born to a

life of wealth and privilege. He had the wherewithal to build a notable

collection while still in college in the 1960s, but his hobby didn’t sit well

with his family.

Rohan said, Gardner’s “father was very upset with him for spending a

few hundred thousand dollars in the 1960s on coins and thought it was a

complete folly and a waste of money and that his son has lost his mind.

So Gene sold the collection after he graduated from college and ... it

brought $700,000.

“I think there was some ‘I told you so’s’ around the dinner table. I don’t

think Gene’s father ever questioned his business acumen ever again. He

turned out to be one of the great investors of our time.”

Gardner founded investment advisor Gardner Russo & Gardner, which,

Rohan said, had more than $10 billion under management.

Gardner was diagnosed with multiple myeloma in 2010 and given a short

time to live. At his wife’s request, preparations for the first auction were

speeded up so Gardner could witness the sale of some of his most-

prized coins. However, he lived to see the entire collection sold, dying a

few months after the last sale and six years after diagnosis.

This article was originally published in the Summer 2019 issue of the Central States Numismatic Society’s

journal, The Centinel, www.centralstatesnumismaticsociety.org. Reprinted with permission.

Heritage Auctions President

Greg Rohan addresses bidders

on Platinum Night.

30

As someone seeking protection, you need to understand that contract

language generally favors the insurance company, and you need to

know exactly what coverage you are — and are not — receiving. That

means asking questions and reading every word of every document in

every policy you sign. In the case of coins, you need to be particularly

certain of what coverage applies when the coins are at home, in

a safe-deposit box or in transit, as well as any additional security

requirements for each circumstance. Some things to keep in mind:

• Most homeowner’s policies DO NOT insure your coin or jewelry

collection beyond $1,000 (combined with all other items defined as

a “valuable”). Most insurance companies will offer a rider for more

specific coverage, but since it’s not their standard business, they

Auguste Rodin (French, 1840-1917)

Éternel printemps, deuxième état, première reduction, 1899-1901

Bronze with brown-black patina

25-7/8 x 33-1/4 x 15-3/4 inches

Sold for $762,500 | December 2018

31

typically are not very flexible. You will be required to provide a fixed

inventory, and modifying the coverage whenever you buy or sell items

from your collection will likely require a major paperwork effort.

• Some insurance companies require an “appraisal for insurance.”

If you choose a company that has this requirement, guidance is

available later in this book. In this specialized field, the best option

often comes from a company that is familiar with the needs of

collectors. We have listed several companies in Appendix B.

• In the case of collectibles other than coins, you may want to ask a

dealer to recommend a knowledgeable insurance company. Not all

insurance companies possess the expertise or coverage options

that collectors require. While premiums vary, price is not the only

consideration. Find an agent and a company with a good reputation

and expertise in the field of collectibles. You may have to pay a little

more, but it will be well worth the price if you ever have to submit a

significant claim.

• One final note about security: You need to be careful about

discussing your collection (and especially where you keep it) with

others. Enjoy your collection, but stay vigilant. A little paranoia could

save you hundreds of thousands of dollars.

TIPS FOR HEIRS: This chapter contains advice that may be

the most important you will read. Seasoned collectors are

generally very security-conscious, but those who have come

into possession of a collection only recently must immediately

understand the risks and responsibilities that come with this

unfamiliar asset. If it’s small enough, take the collection to a safe

deposit box immediately. Until you have it safely transferred into

a bank vault, do not discuss it with others. With larger objects,

you may want to consult with an insurance agent about the best

method to safeguard them until they have found their next home.

32

Fancy Light Yellow Diamond, Diamond, Gold Ring

Sold for $324,500 | December 2017

33

Estate Planning For Your Collection

PART TWO

34

1794 $1 B-1, BB-1, R.4,

MS66+ PCGS. CAC

Sold for $6,600,000 | August 2021

Bob R. Simpson Collection

35

4

All in the Family

C

elebrities are just like us. Given their wealth, notoriety, and teams

of advisors, we expect celebrities to have formal estate plans in

place. Historically, it turns out that celebrities have more in common

with “us” and often do not have the appropriate documentation and

directives in place that will provide for their loved ones and secure their

legacy once they are gone. Jimi Hendrix died in 1970, and his estate

was subsequently the subject of 30 years of litigation — a very un-rock

’n’ roll epilogue to an incredible career. Queen of Soul, Aretha Franklin’s

estate was involved in a long legal dispute over the singer’s two

handwritten wills, one in a locked cabinet and the other found in the

couch. Neither document was prepared by a lawyer or listed witnesses,

and both documents divided the singer’s assets differently. Ultimately,

a jury in Michigan probate court ruled that the handwritten document

found in the couch represented the singer’s true last wishes. Picasso

was revered as a business genius during his lifetime, but when he died

in 1973 without a proper will, his many heirs were thrust into chaos. It

took six years and a reported $30 million in expenses to divide up his

estate. More recently, musician Prince passed away in 2016 without

a will, leaving a sizeable estate hanging in limbo. Prince’s estate finally

settled in 2022 after a six-year court battle.

One recent survey found that over half of Americans with children do not

have a current estate plan. Most people try to avoid contemplating their

own demise, and many collectors are equally reluctant to consider the sale

of their treasures. As Woody Allen once told his physician, “Doctor, I’m not

afraid of dying, I just don’t want to be there when it happens.”

Heritage Auctions’ Trusts & Estates team assists professional

advisors, executors, fiduciaries, and beneficiaries with confidential

and comprehensive auction and formal appraisal services tailored to

the unique needs of the estate or collection. We recognize that each

client and appraisal project differs and often involves multi-category

collections and residences. Our Trusts & Estates specialists offer

complimentary walk-through services and bring together decades

of experience appraising property in over fifty collecting categories.

Beyond providing auction estimates for disposition purposes, our

36

team assists with providing cost estimates for appraisal projects for

charitable donations, gift taxes, loan collateral, and financial planning.

Heritage Auctions Appraisals Services, Inc. prepares appraisals for one

item or large, multi-category collections.

Headquartered in Dallas, Texas, and with offices in New York, Chicago,

Beverly Hills and Palm Beach, Heritage is well-positioned to work with

families and their advisors, providing creative solutions for estate planning

with collectibles. We understand this process can be overwhelming and

emotional; our goal at Heritage is to ensure a transparent and enjoyable

legacy- planning experience for you and your family.

Involve Your Family

Many collectors keep their families in the dark regarding scale and

nature of their collecting; there are many reasons for this, but consider

taking a longer view. Have you thought about the effect that your

sudden death or incapacitation might have on your collection? What

would you expect from your heirs? What should be done with your

collection? Should it be sold? Distributed among family members?

Some combination? What will remain after taxes?

One call from a surviving spouse took us to a house where we found

a dining room table covered with boxed world coins that were stacked

three feet high. From a distance, it was one of the most impressive

collections that we ever had inspected: all matching coin boxes, each

neatly labeled with its country of origin. The surviving spouse told us

that her husband had been a serious collector for more than three

decades, visiting his local coin shop nearly every Saturday. He then

came home and meticulously prepared his purchases, spending hour

upon happy hour at the table in his little study.

We opened the first box and couldn’t help but notice the neat, orderly

presentation: cardboard 2x2 coin holders, neatly stapled, with crisp

printing of country name, year of issue, Yeoman number, date of

purchase and amount paid. We also couldn’t help notice that

90 percent of the coins had been purchased for less than 50 cents

and the balance for less than $1 each. The collection contained box

after box of post-1940 minors — all impeccably presented and all

essentially worthless.

We asked the surviving spouse if she had any idea of the value of the

collection. She replied that she knew rare coins were valuable, and

37

The Very First Winchester Model 1876 1 of 100 Shipped

Historic Winchester “One of One-Hundred” Model 1876

Centennial Lever Action Rifle with Factory Letter

Sold for $615,000 | June 2023

38

John F. Kennedy. White House Rocking Chair gifted by the President to former New York

governor Averell Harriman.

Sold for $591,000 | May 2022

The Estate of Melvin “Pete” Mark, Jr.

39

since her late husband had worked so diligently on his collection for

so many years, she assumed that the proceeds would enable her to

afford a nice retirement in Florida.

We had to carefully explain that we couldn’t help her with the sale of

the coins. Her husband had enjoyed himself thoroughly for all those

years, but he had never told her that he was spending more on

holders, staples and boxes than he was on the coins. Her dreams of a

luxurious retirement diminished, we advised her to contact two dealers

who routinely purchase such coins. The fault was not in his collecting,

but in his failure to inform his wife of the nature of the collection

.

We more typically encounter surviving spouses and heirs at the other

end of the spectrum. When your spouse spends $50,000 or $100,000

on rare coins or other collectibles, you generally have some knowledge

of those purchases, but not always — and often, the most prodigious

collectors are coy with their family about just how much they’re

investing. This leads to the more enjoyable surprises — those made-

for-TV moments when we inform unsuspecting heirs of the vast fortune

they’ve inherited.

Years ago we encountered the younger of two sisters who were

dividing their father’s estate. He had left Germany in the early 1930s

— not a great time to immigrate to America, but an excellent time to

be leaving Germany. He brought to America two collections: antique

silver service pieces and his rare coins. The coins were sold mostly to

establish his business in Iowa. Despite the hard times, he prospered

and was able to devote the next 30 years to rebuilding his collection of

German coins.

At the same time, he continued to expand his collection of 17th-

and 18th-century German silverware. We knew every aspect of his

collecting history because he left a meticulous record on index cards.

Every coin and every piece of silver was detailed with his cataloging

and purchase history. His daughter was in awe of his passion for

maintaining such detailed records.

After his death, his daughters decided to split his collections between

themselves. They added up the purchase values of each of his

collections, which were just about equal. The older sister/executor

had acquired some small knowledge of antique silver, and since she

wished to keep all of the elegant heirloom tea service for herself,

she decided to keep the silver and give her younger sister the coins

40

[Alexander Hamilton, James Madison, and John

Jay]. The Federalist: A Collection of Essays,

Written in Favour of the New Constitution,

as Agreed Upon by the Federal Convention,

September 17, 1787. New York: Printed and

Sold by J. and A. M’Lean, 1788.

Sold for $312,500 | March 2020

— she definitely was not interested in splitting. After selling the non-

family silver pieces through a regional auction house, she boasted of

realizing more than $200,000 from her father’s $27,000 investment.

The younger sister came to us with only one box of his coins. Her

father’s records for that box indicated a cost of less than $2,000, but

knowing the years he had collected, we were anticipating at least a few

nice coins. However, we were totally unprepared for what came next:

pristine coins of the greatest rarity. His $2,000 box was worth more

than $150,000, surpassing all our wildest expectations.

She then produced the record cards for the rest of the collection, and

we offered to travel back to Iowa with her the same day. When we

finished auctioning the coins, she had realized more than $1.2 million.

41

In another situation, the wife of a deceased coin dealer called us to

consign $1 million in rare coins from his estate. This asset represented

a significant portion of her retirement assets. We eagerly picked up the

coins, and already had started cataloging and photographing when we

received an urgent phone call from her attorney. The coins had to be

returned immediately. It appeared that her husband had been holding

the extensive coin purchases of his main customer in his vaults, and

he had neither informed his wife nor adequately marked the boxes.

Most of her $1 million retirement asset belonged to her husband’s

client and not to her husband.

A final example that really distressed us demonstrates that partial

planning, no matter how well intentioned, cannot always guarantee

the desired outcome. A collector with sizeable holdings divided his

coins equally (by value) between his adult son and daughter, with

instructions that they should seek expert advice before selling. After

the daughter came to us, she was pleased to learn that her coins

were worth in excess of $85,000.

Once she signed the Consignment Agreement, she told us the rest of

the story. Her brother had “sold” his share eight months earlier to a local

pawnbroker for less than $7,500. Her father hadn’t shared his knowledge

of the asset’s value with his children for fear that his son would spend the

money foolishly. Instead, her brother basically gave it away.

So, what should you do to prevent such problems?

If transferring your collection to the next generation is desirable, you

will want to provide for an orderly transition. If they aren’t interested in

sharing your love of the collectibles, you will have to decide whether

to dispose of the collection in your lifetime or leave that decision to

your heirs. If the latter, your family should — at a minimum — have a

basic understanding of your collection, its approximate value and how

you want it distributed. The default do-nothing alternative can present

a financial and emotional burden on your beneficiaries and lead to a

costly estate settlement.

42

Important questions to be discussed:

• Are there heirs who will want the collection from a collector’s

standpoint?

• Where are the objects kept?

• Where is the inventory of the collectibles kept?

• What is the approximate value of the collection?

• Has the collection been appraised? Was the collection appraised by

a qualified appraiser? Where is the appraisal and does it need to be

updated?

• Do you have legal title to the collectibles in your possession? If the

collectibles in your possession belong to someone else, do you have

power as Agent, Trustee, Guardian, or Executor to deal with them?

• Are there certain dealers or other experts such as an auction house

representative you trust to provide guidance to your heirs?

• Is there a firm that you and your heirs wish to use in the collection’s

disposition after your death? Is that firm noted somewhere in your

estate plans?

The horror stories that begin this chapter are all true, none are isolated

cases, and they won’t be the last. If, for whatever reason, you choose

not to to discuss your particular circumstances about the collection

with your family, consider choosing a trusted person or estate planning

professional to discuss your particular circumstances. You can also

take the time to write detailed instructions or simply make notes in this

book, and leave it in your safe deposit box or wherever you keep your

valuables.

The next few chapters help guide you through your options for

planning with collections. Whatever direction you and your family

choose for the handling of your collection, the written instructions can

be discussed with your estate planning advisor. Having thoughtful

discussions with your advisor and family, along with a valid document

stating your wishes kept with your collection’s inventory, will greatly

help your heirs when handling your estate.

43

1958 Mickey Mantle Game Worn

New York Yankees Jersey, SGC

Superior/Superior-Excellent with

Multiple Photo Matches

Sold for $4,680,000 | August 2023

TIPS FOR HEIRS: This chapter does not address inheritance

issues, but communications can be initiated from any direction.

Do you have a parent with a collection? Certainly it is an issue that

requires tact, but such a discussion may save considerable difficulty

later. Additionally, if you know in advance that your spouse or relative

has named you as executor in a will or as trustee of a trust, a few

conversations about the collection will make your life much easier.

44

Story

Chris Ivy’s

Chris Ivy is the Director of Sports Auctions for Heritage

Auctions. He graduated with a BA in History from the

University of Texas at Austin and joined Heritage in 2001

after serving as a professional grader with Sportscard

Guaranty Corporation (SGC) in New Jersey.

Heritage Auctions consignment director Peter Calderon

was as skeptical of that first call as any reasonable person would have

been: a hoard of 700 baseball cards that are more than 100 years old

and in mint condition is something that never has happened before.

So when a stranger calls you up and says that’s what he has, it seems

dubious.

But when he showed me the photos on his cell phone, I was intrigued. If

it was what it looked like it was, this was a very, very big deal. The next

day, the family sent us a box with eight cards via FedEx. We confirmed

their authenticity and it would have been an amazing find even without

the roughly 692 cards that still remained in Defiance, Ohio, where we flew

as quickly as possible because the heirs were concerned about having

that kind of value sitting in a home.

The consigner was a man named Karl Kissner, who, as the executor of

his aunt’s estate, represented some 30 heirs, each of whom had a stake

in the collection. The cards had been stored in a box in an attic of the

modest home for a century, buried under an antique dollhouse. One card

had been out of the box during that time, exposed to the elements —

and it served as a reminder of what would have happened to the other

cards had they not been so well-preserved. But because of that box,

we were staring at probably the single greatest find in the history of card

collecting: ultra-rare cards depicting icons like Ty Cobb, Connie Mack,

Cy Young and Honus Wagner, all in conditions similar to the brand-new

cards you could buy today.

The question of how to sell the cards was challenging. At the time, the

universe of collectors for the set likely consisted of a grand total of fewer

than 50 people. The 1910 E-98 set was, paradoxically, so rare that few

people wanted it. High-end early baseball card collectors tend to be

relentless completionists — laser-focused on accumulating whole sets

— and the E-98 set was so elusive that few collectors had ventured to

45

try. The limited universe of collectors combined with the sheer size of

the collection meant it would be financial suicide to try to sell the whole

collection at once with a mega-auction.

Within the collectibles field, it is common for owners of hoards to sell

off their treasures piecemeal over time, while keeping secret the true

size of the collection out of fear that if people know how large it is, they

would wait for the prices to come down. As a result, the prices never

even start high.

With the family, we decided right away that wasn’t the way to do it. First,

we didn’t think it was ethical — and that if we followed the “slow leak”

approach, we would end up with a lot of disgruntled buyers who had

overpaid for the first few cards only to watch the prices come down.

Second, we knew that a cache of this size could attract tremendous

media attention — especially if the family was willing to serve as the

public face of it — and, with a set featuring a limited collector base

like this one, we thought media attention could expand that market.

We talked to the family about how to approach the press and the first

questions were, “What should we call it? What’s the name of the region

you’re from?” They told us it was known as The Black Swamp; at first,

we weren’t sure about calling it that. But while the name seemed a

little dark, we decided that it was intriguing and mysterious enough to

attract attention.

So we opted for a sort of hybrid approach. We would offer the story of

The Black Swamp Find to the media, but also would carefully sell off

the collection over the course of four or five years. We put out a press

release, and the first major story came from The Associated Press.

Local and cable news shows followed and, finally, the Today Show

called. The story appeared on literally thousands of traditional and

online media outlets.

Thirty members of the family came to the auction for the first few cards

from the Black Swamp Find; in total, the first 30 cards we sold realized a

combined $566,132. The family understands the importance of patience

in realizing full value for the collection, so it looks like I’ll be telling the story

of the Black Swamp Find for years to come.

46

Mildred Hedrick Fender

Fort Worth, Texas

H

eritage was honored to present an impressive collection of ﬁne

silver and decorative arts from the Estate of Mildred Hedrick

Fender in our Fall 2022 auctions. Mildred’s passion for giving back and

her love of entertaining made her a pillar of the Fort Worth community.

John Bridge Silver Covered

Tureen on Stand,

London, 1827

Sold for $27,500

A Pair of Charles Reily

and George Storer Silver

Candelabra, London, 1844

Sold for $35,000

The Estate of

47

A Pair of Italian Marble Busts: Minerva and Mars, 18th century

Sold for $93,750

48

J. K. Rowling. Harry Potter and the

Philosopher’s Stone. [London]:

Bloomsbury, [1997].

Sold for $471,000 | December 2021

49

5

Division of Assets

“There is a strange charm in the thoughts of a good legacy, or

the hopes of an estate, which wondrously removes or at least

alleviates the sorrow that men would otherwise feel for

the death of friends.” – Miguel De Cervantes

I

nheritances bring out the best in some families and the worst in

others. The problem is that it’s difficult to predict exactly how the

prospect of an inheritance will work out with any given family, so it’s

best to plan everything you possibly can in advance to minimize the

potential for wrangling.

In the highly-charged, emotional environment surrounding the loss of

a loved one, any weaknesses in the relationships of those left behind

are exacerbated. Suspicious minds are more finely honed, and if the

estate remains for the survivors to divide, it won’t take much of a spark

to ignite a fire. You can minimize the likelihood of family arguments, rifts

and hurt feelings, as well as expensive and time-consuming litigation by

seeking expert advice for your estate planning documents with precise

written instructions for the division of your tangible assets to your heirs

and beneficiaries. A separate writing listing your specific instructions

for division and distribution can be helpful to serve as an adjunct to

your estate planning documents. Make sure it is signed, dated, and the

pages are numbered.

Instructions about collections are particularly important because

they generally involve a large number of pieces with valuations

that are not obvious based on appearance alone. For instance, in the

world of coins and currency, the same coin and date can include a

number of varieties and variations. Without the help of an expert, it is

not difficult to make an expensive error.

50

Upon a collector’s death, the representative of the estate, usually

the trustee or executor, will have the duty of getting the collection

appraised by a qualified appraiser to establish Fair Market Value (FMV)

as of the date of death. This valuation creates a new tax cost basis to

use in the future when selling or gifting the collection.

The values of items in a collection should not be based on insurance

appraisals; when this mistake is made, the heir who receives the

collection can come out far behind heirs who receive cash or real

estate. Insurance appraisals usually represent a “retail replacement”

valuation that can be very different from the “fair market” valuation

that would be used for financial planning or estate tax purposes. “Fair

market valuations” represent, by definition, a value closer to what a

collection might be expected to bring in an orderly sale.

Omega, Very Rare And Important Gold

Speedmaster Professional Wristwatch,

No. 19, Presented To Astronaut

Michael Collins, circa 1969

The Estate of Michael Collins

Sold for $765,000 | June 2022

51

If an appraisal is not necessary to the estate administration, auction

houses can be a good resource for “auction estimates.” These are

not the same as an appraised FMV determination. They are a realistic

estimate of what an item could sell for an the open market, and most

auction houses provide this service free of charge. Your legal advisor

should always be the resource of whether a formal appraisal or auction

estimates are needed for your estate administration.

It may be disheartening to learn that your family members do not

share your passion and level of interest in your collection. Collectors

incorporate multiple strategies into their estate plans to achieve a

desired outcome. A simpler alternative is to establish an estate plan

directing that the articles be sold, with the proceeds shared equally

among the heirs rather than family members dealing with the process

of equitably dividing a collection.

Even with the best planning, you may still have the dilemma of whether

it is better for you to sell or dispose of your collection during your

lifetime or at death. During your lifetime, your personal knowledge and

management has served you well. We suggest you take care and

consideration by seeking advice from various professionals - an auction

house with whom you’ve worked well, or your wealth, legal, and tax

advisors. This will assist you in making a personal decision that will

serve your desires and preserve the asset value and family dynamic.

John Lennon Personally Owned

and Used Pair of Reading Glasses.

Sold for $57,500 | December 2021

52

A number of tax issues, which will be discussed later, also must be

considered. For now, it’s important to remember that there are different

tax consequences related to sales and gifts during your lifetime versus

disposition at your death. However, taxes should only be a part of your

determination — not the sole consideration. You must weigh many

factors in deciding what is best for you and your family.

In summary, your collection is yours to enjoy now and yours to sell

or give away as you see fit. The old saw says, “You can’t take it

with you.” You can, however, ensure that the collection provides as

much value for others as it has for you.

Make an action plan for your collection, even if you anticipate many

more decades of collecting.

If the timing is immediate, speak to your legal, tax and financial

advisors who are essential to the implementation of your plan and

are equipped to proceed accordingly. Otherwise, prepare detailed

written instructions and leave copies with both your collection and

your estate plan. If you prefer that your collectibles be distributed

among family members, provide specific instructions in writing as

to how distribution is to be accomplished. If you wish to distribute

the proceeds, providing a preference for a firm or dealer who is

knowledgeable, trustworthy, and reputable is always helpful.

With tax laws becoming more complex and ever changing, it is wise

to review your estate plan annually with your advisors. This can

help assure that your wishes for your collection are accurately and

effectively managed.

TIPS FOR HEIRS: Good communication between family members

can go a long way to enhance a good estate plan and ease the

transfer of assets. Involvement in a parent’s collecting activities can

create new and lasting bonds between the family members; you may

even begin to enjoy collecting yourself.

53

Dracula (Universal, 1931). One Sheet

(27” X 41”) Style A.

Sold for $525,800 | November 2017

54

Story

How Heritage

Set a New Market for

Norman Rockwell Preliminary Studies

By Pitting Different Category Collectors

Against Each Other

In 2016, an iconic but very small 11.5” x 9.25” Rockwell study — paint

sketched onto a photographic print — for his famous painting Triple Self

Portrait, was offered to Heritage Senior Vice-President Ed Jaster by a

previous consignor of minor Rockwell works. The client was successful

with his other offerings and Heritage was his first call. Heritage estimated

the piece at $150,000-$250,000. “This seemed to be a realistic price at

the time,” said Jaster, “based on its size and the fact that a similarly sized

study for Rockwell’s also-iconic Girl with Black Eye had failed to sell the

previous year at Sotheby’s against a $200,000-$300,000 estimate.”

Eventually, the owner of the art chose Heritage, partly based on a

recommendation by an independent Rockwell specialist, and partly based

on his previous success with his consignment to Heritage. He believed

that Heritage would be the best auction house to recruit collectors

across the spectrum of collecting categories rather than just marketing

the work to art buyers. According to Jaster, “It had long been Heritage’s

view that our top clients, regardless of specific collecting focus, maintain

a great interest in iconic artworks and collectibles in any category. This

insight informs our promotion efforts and gives our consignors a major

advantage over those of other leading auction houses.”

After substantial advertising and public relations campaigns, the day of

the auction found multiple bidders competing. The field comprised not

only American Art and Illustration Art collectors, but major Coin collectors

and serious Comic Art collectors, all of whom ended up battling it out.

These bidders drove the price to set a new record for any Rockwell study

at an unprecedented $1,322,500, becoming the first Rockwell study to

reach seven figures. The winner was a noted Comics and Illustration Art

collector, and the under-bidder was primarily a Comics Art client.

55

Norman Rockwell (American, 1894-1978)

Study for Triple Self Portrait, 1960

Sold for $1,332,500 | May 2017

56

57

Coincidentally, just weeks later, another major Rockwell study larger in

size (16” x 15”) showed up at Heritage Auctions’ offices addressed to

our Sports Collectible department. Its arrival was completely unrelated

to Triple Self Portrait. Indeed, the owners, descended from the umpire at

the center of the image, believed they were sending us an autographed

print worth just a few thousand dollars. To that family’s delight, Heritage

specialists quickly identified the so-called print as an original painted

cover study for the 1948 baseball-themed Saturday Evening Post cover

dubbed Tough Call.

“In a controversial decision even within the company,” Jaster continued,

“our team decided to run the painting in our fall 2017 Online Signature

Sports Auction, this time with an estimate of $300,000-up. Would

lightning strike twice?”

Indeed it would! The fields of Fine Art, Illustration Art and Sports collectors

ran the study up to a new record of $1.68 million in an Internet-only

bidding war, which was ultimately won by a Sports collector.

As further evidence of the depth of Heritage’s cross-marketing efforts,

the two winning bidders as well as the two direct under-bidders of each

lot consisted of four separate clients.

Norman Rockwell (American, 1894-1978)

Tough Call, Saturday Evening Post cover study (detail), April 23, 1949

1948 Original Study for “Tough Call” by Norman Rockwell –

Gifted to Legendary Umpire “Beans” Reardon.

Sold for $1,680,000 | August 2017

WORLD AUCTION RECORD FOR AN OIL STUDY BY THE ARTIST

58

Keith Haring (1958-1990)

Andy Mouse, 1986

Portfolio of 4 screenprints in colors on

Lenox Museum Board

Edition 1 of 30

Sold for $945,000 October 2023

Private Collection, Miami, Florida

59

6

Should You Bequeath Your Collection,

or Sell During Your Lifetime?

“The main thing is to be moved, to love, to hope, to tremble, to live.”

– Auguste Rodin

A

collector spends countless hours of their time carefully and lovingly

amassing a collection, often having fought for individual pieces at

auctions, made great discoveries in unlikely locales, overpaid for that much

needed example and watched as the value of that collection grew over

the years. Selling a collection during the collector’s lifetime can provide

enjoyment, accolades and the benefit of reaping the financial rewards. That

financial realization can be used for donations, gifts or to pursue building

a better collection — or beginning in a whole new collecting field. As

collectors ourselves, we understand the fun of collecting and the pleasure

to be found in the thrill of the hunt. We see many collectors who sell an

entire collection multiple times during their lives and then branch into wildly

fluctuating directions of interest — or choose to concentrate their collecting

on higher quality examples in their field.

First, let’s consider some of the logistical and practical reasons for selling

a collection during one’s lifetime rather than donating, gifting or leaving the

collection in your estate.

Start planning for your collection early if you want it preserved or if you want

your heirs to receive the highest value for it, even if you anticipate many more

decades of collecting. Research and stay informed regarding the current

market for your collecting category to know when it might be the best time

to sell or when it appears to be more of a buyer’s market.

60

A collector may have established relationships with a particular auction

house or dealer — or have strong opinions as to what venue they would

prefer to see their collection sold through. Being able to make the decision

of sale venue and negotiate the best possible sale terms should be the

responsibility and concern of the collector themselves, not left as a burden

to their heirs. All too often we see situations where inherited collections or

disinterested families sell in inadequate local venues or to unscrupulous

dealers and receive only a small percentage of the true value. Below is an

example of how much can go wrong when there is a lack of careful planning

during a collector’s lifetime:

Heritage’s Trusts & Estates Department was approached by an

heir who had inherited half of his father’s comic book collection

and wanted to know what the sale potential and market value

was for his inheritance. The comics turned out to be wonderful

examples of some rare and excellent condition Golden and Silver

Age comics from the 1940s through 1960s. Heritage marketed the

collection extensively and ended up selling the comics at auction

for over $800,000. When we asked the heir about the other half of

the collection that had been left to his sibling, he told us the all-

too-familiar story of the other half having been sold locally for less

than $15,000. His sibling’s disinterest and lack of knowledge about

the value potential for the collection resulted in a significant loss of

inheritance — surely not their father’s intention.

Will codicils and directives may be written to instruct your heirs how you would

prefer your collection to be dispersed or sold as part of your estate. Those

directives are not always fully enforceable or followed by your beneficiaries.

By overseeing the sale themselves, collectors know that they have done best

for their collections and are able to receive the recognition and value they

deserve.

To Gift or not to Gift

If a collection is valued over the current lifetime gift tax or estate tax

exemption threshold ($12.92 million per individual in 2023), or the combined

assets of an individual exceed that amount, then it is important to consider

the implications of paying estate tax upon your passing versus possible gift

tax during your lifetime. There are very practical tax benefits of selling high-

value items or collections during your lifetime, rather than just allowing your

estate and heirs to deal with the distribution, sale and taxes.

61

A Pair of Chinese Cloisonné Lions with Riders, 18th century

Sold for $175,000 | September 2023

Property from the Estate of Mrs. Amon G. Carter, Jr., Fort Worth, Texas

A Rare and Large Chinese Underglaze Copper Red Peony Dish, Ming Dynasty, Hongwu Period

Sold for $275,000 September 2022

Property from the Estate of Dr. Cornelius Osgood and Soo Sui-ling Osgood

62

Porﬁrio Salinas (American, 1910-1973)

Blue and Gold

Sold for $42,500 | October 2022

Property from a Texas Estate

Federal law provides that the threshold for lifetime gifts and the estate tax

exemption for transfer at death are the same amount, but the law allows for

increases considering inflation. For a death or gift in 2023, the exemption

amount is $12.92 million per individual. Gift tax rates start at 18% and can

reach up to 40% on certain gift amounts. The tax responsibility typically

lies with the donor, not the individual receiving the gift. There are practical

benefits to consulting your legal and tax advisor to consider planning around

lifetime or estate gifts of your collection.

Another benefit of lifetime gifting is that by making the gift of a tangible item,

you are establishing a new cost basis as of the date of the gift for the fair

market value. The recipient, whether a trust or individual, would then benefit

from less capital gains taxes when they choose to sell.

There are also benefits with planning to make annual exclusion gifts in any

one tax year. The 2023 annual gift exclusion amount is $17,000. An individual

63

can make as many annual gifts to as many people (not just family) as they

wish during a tax year. Spouses can make what are called split gifts in any

tax year under the same circumstances, thus doubling the benefit of the gift

tax annual exclusion limit. Always consult with your tax advisor to determine

what are the regulations for filing gift tax returns and in what circumstances

filing is necessary.

Another important tax consideration for lifetime giving is how it affects the

tax cost basis of the gifted item. For tax purposes, the cost basis is the

original purchase price of an asset. Generally, a taxpayer who acquires

property by gift takes a basis in the property equal to the donor’s adjusted

basis in the property at the time of the gift. This differs from bequests and

gifts upon death. For inheritances, the basis is the fair market value (FMV)

on the date of the decedent’s death or six months afterward, if the executor

elects the alternatative valuation date. The recipient’s basis for inherited

property is stepped up (or stepped down) from the decedent’s cost to the

asset’s fair market value at the decedent’s date of death. This is referred to

as a carryover basis and is often used for lifetime giving. The basis remains

the same as when the giver held the asset, but the basis may be adjusted

to account for any gift taxes that were paid at the time of the gift. To figure

out the basis of the property received as a gift, you must know the donor’s

adjusted basis just before the donor made the gift, the fair market value of

the property at the time the donor made the gift, and the amount of any

gift tax paid on the gift. The considerations involved in making lifetime gifts

or gifts at death require careful planning and analysis with family members,

estate, and tax advisors to ensure your wishes and expectations are met for

your collection.

Donation Considerations

The notion of preserving one’s legacy for future generations in the public

collections of museums, libraries and archives, is every collector’s dream.

Unfortunately, the reality of what might happen to your beloved collection

upon donation may not reflect your intent and expectations.

Museums and non-profits may not need or desire your beloved collection.

For example: in order for a collector to receive the optimum tax benefits of a

donation, the receiving entity must have “related and like use” of the items.

A collector’s perception of the importance of works of art or collectibles

may not be shared by current or future curators. The museum’s mission and

direction may change over the years so that your donation may find its way

into a storage cabinet or warehouse locker.

64

A museum’s permanent collection is not always permanent, and museums

are a consistent source of material in the auction market. Whether sold to

fund future acquisitions, assist with the wider capital campaigns, or even

provide operating funds, institutions often have a more pressing need for

money than objects. In many cases, it is preferable for the institution to

receive a cash donation over an individual’s collection.

In addition, donating the cash from a sale of an item doesn’t often generate

the same concern for an IRS audit as does a tangible gift which requires an

appraisal. An auction sale almost always complies with the very definition

of fair market value and determines the charitable donation valuation for tax

purposes. Past abuses, including outright fraud and tax evasion, have led to

very strict requirements for acceptable charitable donation appraisals, which

are more fully explained in the appraisal chapter of this book.

Many institutions do not accept donations that are bound by stipulations of

permanent holding or display. Only a very small percentage of donated items

actually get displayed. Furthermore, when a particular painting or artifact

becomes especially valuable in the market, the decision may be made to sell

it in order to obtain the monetary funds to support the institution’s mission

and endeavors.

If the institution is requesting the gift or donation from you, the object probably

has a much better chance of regular exhibition, although there is never a

long-term guarantee. If the donated item is regularly displayed, it usually will

have acknowledgement of the donation’s source on the wall plaque and in

any published literature. There are other methods in gifting a tangible asset

that can provide the same recognition but under different circumstances. For

example, a collector may consider loaning a piece of art to an institution or

a fractional gift of ownership. Including art or collectibles as part of museum

exhibitions adds to the provenance or history of a piece, which will make it that

much more desirable and valuable to the market.

Auctioning a collection in its entirety can increase the value of the lesser

pieces in the collection by association with the most sought-after pieces.

By establishing a collection identity, the provenance and pedigree of that

collection will carry forward with the items forevermore to add recognition

and appreciation both for the collector and the collection. Particularly in the

collectible categories such as coins and comic books, the provenance and

pedigree is key to securing an item’s desirability and value in the market.

65

The idea of parting with a beloved collection may seem initially unwelcomed

and unthinkable, but the fact is that the “letting go” of a collection is an

inevitable part of a collector’s life — the question is how and when. With

proper planning by a team of professional advisors, making wise decisions

to oversee and control the sale, gift or donation can lead to greater after-tax

monetary reward, family harmony and fulfilling charitable objectives.

Disneyland - Original Club 33 Sign

(Walt Disney, c. 1967).

Sold for $108,000 | May 2022

66

The

Gardner

Collection

When it comes to selling a collection that was assembled over

years as a labor of love, many collectors like to have a hand

in the process, using the sale as a way to document their

connection to the items under their care and to share the stories

behind them.

In total, the over 3,000 coins in the collection of Pennsylvania

collector Eugene H. Gardner brought more than $53 million

across four major auctions at Heritage between 2014 and 2015.

The collection was the product of a keen eye and a passion

for numismatics that began in 1954 when as a college

student Gardner began assembling his first coin collection.

That collection was sold in 1965 but Gardner soon caught the

collecting bug again. The resulting “second collection” was

widely considered by numismatic experts to be among the finest

collections of silver coinage ever assembled. Gardner said he

learned many lessons when putting together his first collection,

then applying these in his second collecting effort.

For Gardner, it was important for him to work with Heritage in

the presentation of his collection, since he viewed the auctions

as the culmination of a gratifying and absorbing collecting

career. Gardner said that the sale of his collection “allows me

to introduce my largely completed collection to the numismatic

fraternity, which is very exciting to me. I love the thought of

sharing the auction experience with my family. We’ve really all

been in this together. In fact, my grandchildren know how to get

my attention by just saying, ‘Opa, what new coins do you have?’”

A Decision to Sell

67

1802 Half Dime

AU50 PCGS

Sold for $352,500 | June 2017

68

His decision to sell his collection across a series of Heritage

sales over the course of a year, rather than at a single auction,

served multiple purposes — all in the interest of maximizing the

sale totals. First, it allowed collectors and dealers to stretch out

their bidding dollars instead of having to use all of their funds

at one time. Second, the strategy allowed key parts of the

collector’s groups of early U.S. silver coins, Barber coins and

Seated Liberty material to be spread out fairly evenly. Gardner

purchased many of his coins at auction, making the prices that

he paid public record. By establishing a new price point, he

would allow for even higher prices in the subsequent auctions.

Looking at the results of the Gardner sales shows that many

coins went up in value, a few went down, and some went

unchanged in their trips to the auction block. A collection’s

success at auction needs to be looked at as a whole, because at

auction, anything can happen with a single lot. Success is best

measured by how well a collection does in total for the collection

as a whole.

Gardner’s 1802 Draped Bust half dime, graded an About

Uncirculated 50, was a highlight. As Heritage’s catalog noted,

“One of the most desirable coins in high grade in the Gardner

Collection, the 1802 half dime is a signal rarity, a ‘trophy coin’

for even the most advanced numismatist and an issue unknown

in Mint State.”

It sold at a 2009 Heritage auction for $195,500 (then graded

by the Professional Coin Grading Service as an Extremely

Fine 45). At the first Gardner auction on June 23, 2014, the

piece (upgraded to an About Uncirculated 50) sold for a strong

$352,500, that price serving as a testament to the quality

and rarity of the piece. Heritage worked with Gardner to help

maximize value in his collection by seeking upgrades when

possible. The result was that Gardner, and his legacy as a

collector, will survive for generations in the many coins that carry

the Gardner pedigree.

The Gardner Collection

69

1959 Gibson Les Paul Standard

Sunburst Solid Body Electric Guitar,

Serial #9 0696

Sold for $350,000 | July 2021

70

A Gilt Bronze-Mounted Patinated Copper

Two-Handled Vase by Alexis Decaix,

Designed by Thomas Hope for his Duchess

Street Mansion, London, circa 1802-1803

Sold for $225,000 | September 2022

Property from the Estate of David D.

Denham, Tulsa, Oklahoma

71

7

Collectibles, Estate Planning and Taxes

“The only difference between death and taxes is that death

doesn’t get worse every time Congress meets.” – Will Rogers

I

f you are an avid collector, your collection may represent a large

portion of your net worth and your estate. While your real estate,

stocks, bonds, and other traditional investments are probably

accounted for in your estate plan, your collection may not be. It is

important to ensure that your Estate Planning Advisory Team knows

the type, size and approximate value of your collection. The inclusion of

these assets in your estate could make a difference in how your team

constructs your estate plan, what tax advantages they obtain, and what

tax liabilities they can mitigate.

When a person dies owning property, that property is transferred to a

recipient. The process of determining the recipients of those assets—

who gets what, when they get it, and what will be done about taxes—is

the central purpose of estate planning. The decisions you make can

have a significant impact on the amount of ordinary income, capital

gains, gift and/or estate taxes that you or your heirs will pay. Since we

cannot know the particulars in your case, we cannot advise you about

which of these planning options to use and how they apply to your

personal situation. We recommend that you review our information to

inform yourself in advance of reviewing the plan with your professional

estate and wealth advisors.

We strongly recommend that your advisor team should include a legal

professional, preferably an attorney who is board-certified in estate

planning and/or probate law by your state, a tax advisor, preferably a

CPA, and a life insurance professional.

Between you and your advisory team, you should be able to create

the plan that best suits your unique needs and wishes. Tax and

estate planning laws can be extremely complex and there is no single

individual who can be relied upon to advise you on all aspects of the

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1804 $10 Plain 4, BD-2, JD-1,

Judd-33, High R.7,

PR65+ Deep Cameo PCGS. CAC

Sold for $5,280,000 | January 2021

The Bob R. Simpson Collection

73

legal, tax and insurance matters that are involved in estate planning.

As we stated before, tax laws are always changing and have significant

impact on the taxation of your estate, and on decisions about the

benefits and detriments of making lifetime gifts, or gifts by will or trust.

For example, long-term capital gains on collectibles are currently taxed

at a rate of 28 percent or your marginal tax rate, whichever is lower,

while long-term capital gains on other assets, like your stocks or real

estate, are generally taxed at a lower rate of 15 or 20 percent.

Annual gifts of up to $17,000 (since 2023) may be made by you to as

many individuals as you choose without affecting your lifetime gift/

estate exemption. If your spouse joins you in the gift, you can distribute

$34,000 each year to as many lucky recipients as you choose, without

reducing your joint lifetime exemption. In addition, as of 2023, you are

allowed a $12.92 million lifetime gift/estate exemption, ($25.84 million with

your spouse/partner), and a $1 million gift tax exemption for generation-

skipping gifts to grandchildren. For years prior to 2026, the lifetime gift tax

exemption will be increased for inflation each year with a maximum tax

rate of 40 percent. On January 1, 2026, the lifetime gift/estate exemption

is scheduled to be reduced to approximately $7 million per person.

Is Your Collection Worth More Today Than When You Purchased It?

As with any carefully chosen investment, a collection should hopefully

appreciate in value over time. There are, of course, exceptions.

If you were unfortunate enough to have been the victim of an

unscrupulous seller, or perhaps acquired some of your collectibles

at the peak of a market that has since declined, a current appraisal

may indicate that you are in a capital loss position. If that’s the case,

you may sell the collection and use the loss to offset an equal amount

of capital gains. In addition, you may deduct up to $3,000 annually

($1,500 if you are married and filing separately) of excess capital losses

against your ordinary income. These losses may be carried forward to

future years until they are entirely used, or until your death.

Certain losses, depending on their character (short- or long-term) may

offset only certain gains and the IRS has established a priority for

offsetting short- and long-term capital gains. The best strategy when

you incur capital gains that can’t be offset with losses is to simply pay

the tax. If the collection has appreciated, many other issues come into

play. These are discussed over the next few pages.

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The Unpredictability of the Estate Tax

Unless you have successfully completed your lifetime planning,

many of the assets held directly in your name will transfer into your

estate upon your death. Your estate will have to pay estate taxes if

the net value is greater than the exemption amount set by Congress.

Unfortunately, Congress has made planning for the estate tax

challenging by continually changing the size of the exemption.

With the passage of the Tax Cuts and Jobs Act (TCJA), the gift and

estate tax exemption has increased significantly. Currently, the lifetime

estate and gift tax exemption is set at $12.92 million per taxpayer, up

from $12.06 million in 2022. Since couples share their exemptions, it

means a wealthy couple that starts making gifts in 2023 can pass on

a lifetime maximum of $25.84 million.

There’s one big caveat to be aware of: the $12.92 million exemption

is temporary and only applies to tax years prior to 2026. Unless

Congress makes these changes permanent, after 2025 the exemption

will revert back to pre-2018 levels on January 1, 2026. If you bequeath

a large estate of tangible assets to your heirs, without proper planning,

your heirs may require a substantial amount of liquid funds to satisfy

the estate taxes.

Without extensions, estate taxes must be paid to the government

in cash within nine months of death. Often, the unfortunate result of

this immediate need for cash will be a “fire sale” to raise the required

funds by the tax filing date. A hasty sale will not maximize the value of

the collection to which you have devoted a great amount of time and

effort. Despite your best intentions, your heirs may not benefit from

your collection as you had intended without proper planning.

One part of the solution to the need of immediate liquidity to pay for

potential estate taxes can be life insurance.

First, you will need your accountant or advisor to develop a pro forma

balance sheet and income statement to determine the extent of the

potential estate tax liability based upon the best estimate of the value

of your estate at some future date. Depending on the valuation of your

estate, your advisor can estimate the amount of tax that may be due

upon your passing.

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Julian Onderdonk (American, 1882-1922)

Texas Landscape with Bluebonnets

Oil on canvas

Sold for $437,000 | November 2015

This part of your planning is more of an art than a science. The value

of your assets, which may appreciate or depreciate over time, is

somewhat unpredictable. Because one’s date of death is uncertain, the

tax rates that will apply are uncertain. Based on these assumptions,

your advisor should be able to assist you in determining the tax

consequences of making lifetime gifts compared with making bequests

at the time of your passing as directed in your estate plan. These

assumptions will also determine the various strategies that are available

to reduce your tax liabilities.

In most cases, a life insurance policy’s proceeds are not included in

your estate at death as long as you do not name either yourself or your

estate as the beneficiary or owner of the policy. Placing the ownership

of the policy in a separate trust (an irrevocable life insurance trust, or

“ILIT” for short) outside of your estate or owned by a third party is one

good approach. The proceeds of the policy are payable immediately in

cash and pass to your beneficiaries as income tax-free income.

76

By insuring your life for an amount equal to or in excess of your

estimated estate tax liability, you can assure your heirs of sufficient

liquidity to pay the estate taxes, thus enabling the collection to pass to

your heirs without requiring them to sell assets. If they choose to sell

assets because of the “step up” in tax basis upon inheritance, they

won’t have any tax liability to worry about and will be able to maximize

value by selling in an orderly fashion without government-imposed

deadlines. An ILIT comes with a variety of advantages and drawbacks.

For example, an ILIT is a great option if you want to set aside your

assets for specific purposes, but you may be responsible for paying

gift taxes if a beneficiary withdraws from a trust. Make sure to weigh all

pros and cons before deciding to create one.

The Gift Tax and Reducing Your Estate through Annual Gifting

Especially in light of the onerous estate tax rates that can inflict

substantial damage on your estate (remember that potential tax rate up

to 40 percent), reducing your taxable estate through gifts to your heirs

during your lifetime is a simple and extremely advantageous strategy, if

implemented properly.

The gift tax applies to transfers of assets during your lifetime to various

recipients. Current law allows you to make gifts of present interest to

any number of recipients. The donor is responsible for the payment

of any taxes that are due on the gift. In general, a gift is a transfer of

property for less than its full value.

A gift must be accepted by the recipient and is irrevocable. As

previously discussed, our current tax law provides for annual gifts of

$17,000 per recipient (for 2023). If your spouse participates in the gift,

you are allowed to give away $34,000 per year to as many fortunate

individuals as you wish. You are also entitled to a one-time lifetime

estate and gift tax exemption of $12.92 million per spouse in 2023.

Certain gifts are not considered taxable gifts, including medical and

educational expenses that you directly pay for someone, gifts to

your spouse and gifts to a political organization for its use. If your gift

exceeds $17,000 to any person during the year, you must report it on

a gift tax return (IRS Form 709). Spouses splitting gifts must always file

Form 709, even when no taxable gift is incurred. Once you give more

than the annual gift tax exclusion, you begin to reduce your lifetime gift

and estate tax exemption. The IRS will lower your remaining lifetime

exemption over time and then use that amount to determine how much

of your estate is taxable upon your death.

77

1875 $10 AU53 PCGS

Sold for $1,020,000 | October 2022

The Estate of Allan H. Goldman

78

Sean Scully (b. 1945)

Lipari, 1990

Oil on linen

Sold for $495,000 | November 2021

Property of a Chicago Collector

79

In theory, if you have 10 children and grandchildren (in total), you and

your spouse may gift up to $340,000 ($34,000 times 10) each calendar

year to them without filing with the IRS. More good things will result.

Not only will you make these family members very happy, you will have

removed $340,000 from your estate, which is no longer subject to

future appreciation and possible estate taxation.

Those who make gifts on a regular annual basis can substantially

reduce their estate tax liability. Using the above example, in 10 years, it

is possible to eliminate $3.4 million from your estate without reducing

your lifetime gift tax exemption.

What the benefit of using the $12.92 million lifetime gift exemption -

$25.84 million with a spousal gift plan -– in your lifetime, rather than

wait until death and use your estate tax exemption? With property that

has a good chance of appreciating substantially in the future, gifting

it during life removes its value from your taxable estate and you will

eliminate any future appreciation in these assets from your estate.

For example, you decide to gift a painting in 2023 with a fair market

value of $5 million. This amount is removed from your taxable estate

with the completed gift. (Please consult with your tax advisor about the

rules of whether a gift tax return needs to be filed).

Upon your death, the painting’s fair market value is now $8 million.

With the painting being removed from your estate due to the gift in

2023, it is not taxable to you and $3 million of appreciated value has

been saved from estate tax. By careful planning with lifetime gifts,

especially appreciating assets, not only can you share something

meaningful sooner with the gift recipient, you can also save estate

taxes by removing the fair market value you had prior to the gift and

any appreciation of that asset at your death after making the gift.

If that same painting is in your estate when you die and is not a gift, the

recipient receives what is known as a stepped-up tax basis - the date of

death fair market value of the asset. If the recipient then decides to sell the

asset, the basis for determining any gain is determined by the value of the

property at the time of your death, which eliminates most of the tax liability

if the property is sold soon after you pass away. The problem is that if you

retain the property in your estate when you die, you may be subject up to

the 40 percent estate tax.

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Gifted property usually has what is called a “carryover basis.”

The amount used to determine the gain if your assets exceed the

exemption amount to the recipient in the event of a sale is the donor’s

basis in the asset, not the market value of the asset at the time of the

gift. So let’s say you acquired the painting years ago and have a cost

basis of $1 million, but the current fair market value is $5 million. If

you give it to your daughter now, a capital gain of $4 million ($5 million

price, minus $1 million basis) will be waiting for her if she decides to sell

it. This could be eliminated if the property remains in your estate and

your assets do not exceed the estate exemption amount.

Under current law you may gift an unlimited amount of property

during your lifetime to a spouse without paying gift tax as long as your

marriage is legally recognized and your spouse is a U.S. citizen. Upon

your death, the marital deduction allows you to pass an unlimited

amount of property to your spouse tax-free. It should be noted that

marital transfers merely defer estate taxes — they do not eliminate

them. However, using the marital deduction to equalize the estates of

both spouses will allow you to maximize your estate tax exemptions by

transferring assets between the two of you.

The use of annual and lifetime gifts is an essential part of any estate

plan. It’s not exciting, but it is important. At a minimum, you now

have a basic understanding of the concepts to enable you to ask the

appropriate questions of your advisors.

Fractional Gifting Considerations

Collectors who own valuable art and collectibles that well exceed the

$17,000 tax exempt annual gift allowance may wish to reduce their

taxable estates. Consider the use of fractional gifting over time, either

directly or through establishing beneficiary trusts. Gifting a percentage

of the ownership — and thus value — of an item allows for the

retention of the piece by the collector while lowering the taxable estate

to more manageable and advantageous amounts each year. A $17,000

fractional gift to a few family members annually may equal just a small

percentage of the value of an object or collection. However, over a

number of years or even decades, collectors can make full use of their

tax-exempt gift allowances if planning begins early.

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The Capital Gains Tax

Everything you own for investment purposes is a capital asset. This

includes any investment properties you have, stocks and bonds,

mutual funds, and collections—if you bought them with an eye

toward investment.

When you sell a capital asset, the difference between the price you

paid for it (known as your cost basis) and the amount you sell it for is a

capital gain or capital loss.

If you held the asset for more than a year before selling, it is considered

long-term. If you held the asset for less than a year, it is short-term.

The cost basis of an asset depends upon how you acquired the asset.

If you purchased the asset, the basis is the amount you paid at the

time of purchase, including but not limited to any associated expenses,

such as commissions, fees and improvements to the property, etc. If

you received the property as a gift, the basis usually is the price that

the donor making the gift originally paid for it, which also is called

the “carryover basis.” If you inherited the asset upon the death of the

donor, your basis is the fair market value of the asset at the date of

death, called a “stepped-up basis.”

Capital gains on most assets held for more than one year are taxed at

a lower rate than ordinary income. The capital gains tax is generally 20

percent on most assets, other than collectibles, that have been held

for a year or more. However, the long-term capital gains on the sale

of collectibles — such as coins, fine art, comics, or rare books — are

taxed at a maximum rate of 28 percent. If your marginal income tax

rate is below 28 percent, your gain on the sale of collectibles will be

taxed at the marginal rate; if your marginal rate is above 28 percent,

your gain will be taxed at 28 percent — providing you with some tax

savings, but not nearly what you would get with investments in stocks

or bonds. Short-term gains on objects sold within a one-year time

frame are taxed at the same rate as your ordinary income tax rate (this

is true for all investments, from stocks and bonds to more obscure

collectible investments).

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Trusts

The most commonly used trust is the living trust. In legal terms, it is

known as a “revocable living trust.” In simple terms, the living trust is a

document that is used in conjunction with a will, but can avoid the costs

and time involved in probating a will. You transfer your property and title to

the name of the trust; for example, you might be John Doe, trustee for the

John Doe Trust.

If you and your family decide to place your collection into a trust, work with

an experienced estate planning attorney to draft the trust document. A

will is only a supplement to the trust that will assure that any assets that

have not already been transferred into your trust (retitled) will shift into the

trust at the time of your death. Remember, only assets that have been

retitled in the name of the trust will be valid transfers that will accomplish

the objective of the trust. Once your collection is held in a trust, the trust

document will dictate how your collection is managed. Using art as

an example, in the trust provisions, you can isolate certain works of art

to specific individuals or direct the trustee to select which beneficiaries

receive or use certain works of art. Transferring the collection into a trust

allows your beneficiaries to use and enjoy the collection as you desire.

While you are alive, you may be the trustee of your own trust and maintain

complete control of the assets. When you pass away, the successor trustee(s)

you select becomes the new trustee(s). The new trustee has a fiduciary

obligation to follow the terms of the trust as you have stated in the trust

document. Keep in mind, that you should select a trustee who has experience

in managing collections. The trustee is someone who is qualified and

authorized to make decisions regarding the collection based on your wishes.

A revocable trust, in itself, does not result in specific tax savings. But

the advantages are important: While the terms of a will can be public

knowledge, the terms of a trust are private, and within the control of you

and the parties that you select to be involved in the process. Assets will

be transferred soon after death, legal fees can be minimized and the

terms will remain private. Also, there may be less risk of an unhappy family

member contesting a trust than a will.

Additionally, there may be ancillary tax benefits. The trust will provide for

the disposition of your assets in accordance with your wishes. In addition,

the trust will permit you to take full advantage of the marital estate tax

deduction and your lifetime tax exemption by designating the exact

proportion of assets to be distributed to specified recipients.

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Mike Zeck and Others Marvel Super-Heroes Secret Wars #8

Story Page 25 Black Costume/Venom Original Art (Marvel, 1984).

Sold for $3,360,000 | January 2022

84

One of the other major benefits of a living trust is that it can contain

directions for the trustee as to the care and protection of your assets,

should you be unable to make such decisions due to your health or mental

condition. Your designated trustee will assume control of your property

and make the necessary decisions—which is a better option than putting a

judge in control of your assets, which would occur without proper planning.

Keep in mind, there are costs to consider associated with managing the

trust. For example, if an art collection is owned by the trust, it might require

storage, insurance, conservation, security, and other services associated

with the ongoing care and management of the collection.

As an heir to a taxable estate, once the donor or owner of the collectible

has passed away, most of your opportunities to reduce the estate tax

consequences will have passed. It can be awkward, but if you’re worried

that a parent or anyone else from whom you are likely to inherit property

has not been engaging the right advisors for estate planning, you should

Nicolai Fechin (American, 1881-1955)

Taos Studio Interior

Oil on Canvas

20 x 24 inches

Sold for $237,500 | May 2023

Property from the Estate of Lois Brennand, Santa Fe, New Mexico

85

suggest a family meeting with their advisors to ensure all documents are in

accordance with their wishes.

If it is necessary to liquidate all or part of the collection to pay estate taxes, the

expenses of that liquidation (shipping, insurance, auction fees, commissions,

etc.) are generally deductible from the estate. Additionally, estate expenses

related to the use of lawyers and probate costs are deductible from the total

gross estate. It is advantageous to arrange your estate plan to reduce these

expenses rather than to deduct them (see living trust).

If you are the surviving spouse of the deceased, exemptions generally

allow the estate to pass to you without taxes being owed. However,

the estate planning burden then becomes yours, as the same marital

tax exemptions will not apply at your death unless you remarry. If this

eventuality was not already considered in your planning, you should

contact an estate or tax professional without delay. Even if the survivor’s

estate issues were considered in the original planning, it cannot hurt to

reevaluate the situation with a trusted advisor.

Life Insurance and Taxes

“Helpful self-test questionnaire to see if you have enough life

insurance (Sponsored by the Life Insurance Institute):

1.) How much life insurance do you have? ___

2.) You need more.

3.) We’ll send somebody over right now.” – Dave Barry

Although most of us have certain suspicions regarding insurance advisors,

the truth is that life insurance is one of the most valuable tools available

under our current tax structure. An expert insurance advisor is a critical

component of your estate planning team. Ideally, long-term life insurance

should be purchased while you are young and healthy. The same benefits

may not be available should you become ill or incapacitated. Do not wait

until you are in poor health, or when you are at such an age that the costs

of insurance are prohibitive.

There are two primary purposes for life insurance in planning for estates

substantial enough to incur taxation at the maximum rate.

The first is liquidity. In a proper plan, life insurance should be held outside

of your estate. The IRS will want its money right away, and the liquidity

provided by a life insurance payout may allow your heirs to avoid having

to sell your collections at “fire sale” prices. Remember, not all insurance

86

proceeds are excluded from your estate: If you are the owner of the policy

or you name either yourself or your estate as the beneficiary, the proceeds

will be included in the valuation of your estate upon death.

If the estate is structured properly, the tax burden falls primarily on

the estate of the last spouse to die. As a result of the unlimited marital

deduction and the maximum use of exemptions, the bulk of your estate

can go to your spouse and vice-versa. To reduce the cost of the life

i

nsurance and to provide the liquidity for the estate taxes, it makes sense

to insure the last to die.

Assuming that both spouses are alive, most advisors recommend that you

purchase a whole life insurance policy on both spouses that will pay when

the last spouse passes away. This is known as a “last to die” policy.

There is one more problem: Who should pay the premiums on the policy?

The heirs are the likely source for the payment of the premiums.

Why? Because your heirs will be the beneficiaries of your generosity.

But how do they find the money to pay the premiums? Most collectors

should use the annual gift tax exemption to give their heirs an amount

that covers the cost of the premiums. Remember, you can make annual

gifts of $17,000, or $34,000 if your spouse joins you. You essentially

are purchasing a life insurance policy to benefit your heirs, while at the

same time giving them cash gifts with which to pay the premiums. Life

(insurance) is not always fair.

TIPS FOR HEIRS: An ILIT is an important planning tool that

provides liquidity to pay for any estate tax liabilities; the proceeds

are not included in your estate. You may gift the premium amounts

to your heirs using the annual gift tax exclusion; the insurance

proceeds will be received tax-free by your heirs to be used to pay

the estate taxes. It is important to make sure that the documents

are drafted properly by an expert and the gifts are made in

accordance with IRS rulings. Insurance is a critical strategy for any

substantial estate — make an expert a part of your team.

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[World War II, Bombing of Hiroshima]. Autograph Logbook of Capt. Robert A. Lewis [USAAF,

Co-Pilot of the Enola Gay], containing the only IN-FLIGHT account of the “Little Boy” mission

and the bombing of Hiroshima, Japan. August 6, 1945

Sold for $543,000 | July 2022

88

Story

Kathleen Guzman’s

Kathleen Guzman is a former managing director at

Heritage Auctions, having joined the firm in 2006

after a career that included serving as President of

Christie’s East and President of Phillips Auctioneers

and as Senior Vice President of Business Development

at eBay. She has appeared as an antiques expert

on Oprah, Good Morning America, and CNN, and is

probably best recognized for having served as an appraiser on Antiques

Roadshow for more than 20 years.

Sometimes the business of treasure hunting and treasure dealing has

a way of imitating the stories behind the objects collectors covet. The

best example of this phenomenon in my career came in 1994, when I

orchestrated the sale of the original Maltese Falcon.

In the 1941 movie classic The Maltese Falcon — based on the 1931

Dashiell Hammett novel of the same name — Casper Gutman (played by

Sydney Greenstreet) offers private investigator Sam Spade (Humphrey

Bogart) $25,000 plus a quarter of the sale proceeds for help locating a

figurine of a black bird believed to be filled with priceless jewels.

In 1994 — by which time the film was widely considered the first example

of film noir and recently had been added to the Library of Congress’

National Film Registry — I was the president of Christie’s East, and a lady

named Tippy Stringer called our Beverly Hills office about a few items

she was looking to sell, so I headed out to have a look.

Stringer was one of the first female weather reporters and a television

legend in her own right, but the marquee lot of her collection came

from her late husband, the actor William Conrad. Sitting on the shelf in

Stringer’s library — in the background, propping up a row of leather-

bound books — was the original Maltese Falcon used in the movie, a gift

to Conrad from Warner Brothers studio head Jack Warner.

The Maltese Falcon, an elusive object in the movie, also is an elusive

object in real life, and the object at which I was looking had been

presumed lost for decades. The Warner Brothers Archives cite two

examples produced for the film, which the stagehands remember using

for weight-lifting competitions; they weighed 45 pounds each, and one

of them was in the collection of a California dentist. During the filming of

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the movie, the statue fell from actress Lee Patrick’s hands and landed

on Bogart’s left foot, causing a minor injury. Seeing it on the shelf, then

taking it down to examine it and noticing the Warner Brothers prop

house number, my hands trembled.

The Maltese Falcon — the highlight of the film and television memorabilia

sale — was up for auction Dec. 6, 1994, and I was the auctioneer in a

sale that also included Academy Awards for Gone With the Wind and a

copy of that book signed by the cast of the movie.

The pre-sale estimate for the Maltese Falcon was $30,000-$50,000, but

intense interest at the viewing and a few absentee bids had driven our

internal estimate up to $150,000. Film noir buffs had traveled far to see

the prop — some came dressed as Humphrey Bogart, hoping to take a

picture with it, and one lady came looking to measure it for the design

of the table she was planning to build for it. That kind of interest is every

seller’s dream, but also created the potential for an unhappy experience

for auction-goers. Our inadvertently low estimate had brought out more

than a few people who thought they would have a shot at the Falcon for

a fraction of what we knew by then knew it would bring.

I instantly knew what to do: I wanted to lighten the atmosphere in the

room and give every auction-goer a chance to at least bid on it, so I

started the bidding at $1. Every hand in the room shot up, and the place

roared with laughter. The people in attendance got the memory of their

lives and they were able to tell their families and friends that they bid on

the Maltese Falcon!

When the hammer came down, the Maltese Falcon sold for $398,500, a

record price at the time for a film prop, and also surely a record price for a

lead bird with a bronze patina! The buyer was Ronald Winston, president

of the New York-based Harry Winston jewelry chain — but before he

could be identified by the press gathered there, Winston fled the room.

The newscasts that night showed the flight of the mysterious buyer of the

Maltese Falcon. When Winston formally announced his acquisition, there

were high hopes, based on the family’s past generosity, that the piece

ended up in the Smithsonian. But it was not meant to be: the Maltese

Falcon reportedly was sold to a reclusive sheikh for more than $1 million,

and the elusive bird has not been seen since.

90

K

enneth Alan Hill, Sr., turned his love of the water into a lifetime

of collecting. The Fort Worth, Texas, resident and retired

pharmaceutical pioneer sought only the ﬁnest examples of maritime ﬁne

art and antiques to complete a truly outstanding collection. “Hill’s astute

collector’s eye pursued objects rarely seen outside of institutions,” said

Michelle Castro, Vice President of Trusts & Estates at Heritage Auctions.

“His taste was impeccable and now his collection is ready for an entirely

new generation of connoisseurs.”

Versace Dinner Service

A Two Hundred-Two Piece Versace Les Trésors De La Mer Pattern Porcelain Dinner

Service for Twelve, June 2021

Sold for $37,500

Kenneth Alan Hill, Sr.

Fort Worth, Texas

The Estate of

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Montague Dawson (British, 1895-1973)

Night suspect, 1958, June 2021

OIl on Canvas

40 x 50 inches

Sold for $175,000

A Carved Bone Napoleonic

Prisoner-of-War Ship HMS

Alexander Model, circa 1795-1815

May 2021

Sold for $62,500

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1952 Topps Mickey Mantle #311 SGC Mint+ 9.5 - 1985 Rosen Find -

"Finest Known Example!"

Sold for $12,600,000 | August 2022

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8

Collectibles and Charitable Giving

“In faith and hope the world will disagree, but all mankind’s

concern is charity.” – Alexander The Great

“To give requires good sense.” – Ovid

A

mericans gave $499.33 billion to charity in 2022, and individual

donors contributed close to 64 percent of that amount; in total,

charitable giving represents about 2 percent of GDP.

Collectors consider philanthropic giving because they want to support

a specific charity or make a positive impact on their community.

In addition, charitable giving provides donors the opportunity to

obtain a charitable deduction for income, gift or estate taxes. There

are many factors to consider with charitable giving in order to optimize

your tax benefits.

Charitable Giving Nuts and Bolts

For tax purposes, a charitable gift makes the most sense when a

collection has incurred substantial capital gains from appreciation.

Property presently valued below its original cost generally should be

sold at a loss, rather than donated to charity.

This is because the amount of your deduction is based upon the

fair market value of the property and not the original cost to you. If

you give a gift to the appropriate charity, with a fair market value of

$50,000 that originally cost $10,000, you will receive a deduction for

the entire $50,000. This is the benefit of a charitable donation that

has appreciated in value. When looking at the tax implications of a

charitable gift, it is imperative that you involve your tax planner, attorney

and financial advisor, because the rules are complicated.

If your collection has appreciated, you may be able to enjoy some

fiscal benefit through a charitable donation to a public charity. Here is

what it takes to qualify:

94

Complete Collection of Signers of the Declaration of Independence.

Sold for $1,395,000 | June 2022

95

1. The donated items are qualified capital gains property

This generally means that the donated items have been in the collection

for at least a year, are not tangible items created by you (because if

they were, you would only be allowed to deduct the cost of materials in

most cases), and were not gifted to you by their creator.

2. The donee organization is a qualified public charity

Public charities generally receive at least part of their support from

the public. IRS Section 501(c)(3) lists the types of donee organizations

and the guidelines for them to follow to qualify for the charitable

deduction. The charity must serve a public interest and must meet

an “organizational test.” Additionally, the organization must be

organized and operated for a religious, charitable, scientific, literary or

educational purpose.

Churches, schools and museums are generally considered to be

qualified public charities, while private foundations are not. The

difference is that you receive a deduction based only upon the actual

cost of the donated item when you give to a private foundation, while

a public charitable donation can be deducted at full fair market value.

It is reasonable for a potential donor to request that an organization

write a letter confirming that the IRS has made a determination that the

organization qualifies for tax-exempt status under Section 501(c)(3), and

that the charity intends to use the objects for a valid charitable purpose.

3. The donee organization must make “related use” of

the donation

Your gift of tangible personal property must relate to the exempt

purposes or functions of the organization. For example, if you donate

a coin collection to the American Numismatic Society for the purpose

of expanding its museum collections, you would receive a deduction of

fair market value since the collection relates to the Society’s mission of

increasing the knowledge and enjoyment of coin collecting.

If you donate the coins to a hospital that intends to sell the collection

and use the revenue for its capital campaign, you can only deduct your

cost of acquisition. The difference between types of use is subjective

and often confusing, so it is important to determine the use for the gift.

Make sure that the qualified organization actually wants the donation.

The organization should provide a written acceptance of the collection

96

or item, stating that it is a qualified public charity and that the donation

satisfies the related use rule.

An additional factor, which reinforces the importance of communicating

with the charity, is that a charitable deduction for contributions of

tangible personal property exceeding $5,000 must be reduced or

recaptured if the donee sells the property for less than your deducted

amount within three years of the contribution.

4. The collection has a “qualified appraisal”

The IRS requires a qualified appraisal if the gift of property is more

than $5,000. If the gift is greater than $20,000, a complete copy of the

signed appraisal must be attached to the tax return.

A qualified appraiser is an individual who holds himself out to the

public as an appraiser and has earned an appraisal designation from

a recognized professional organization or has otherwise met certain

education and experience requirements, regularly performs appraisals

for compensation, and meets any other IRS requirements.

Other Issues in Charitable Giving

Most charities know very little about collectible assets. If you want your

donation to be a meaningful contribution, you have to determine how

the charity will use your collection.

In most cases, that means that it will have to sell your collection to raise

funds. Unless you are donating the collection to a museum that will

display it or use it for research, it might be best to sell it and donate the

proceeds to your charity. If you choose not to sell your collection during

your lifetime, then you should leave detailed written instructions for the

disposition of your gift.

If your selected charity can not accept your donation and would prefer

to monetize it, selling it at auction is a good alternative. Make sure you

select an auctioneer with experience selling your collecting category.

The charity of choice can be named as beneficiary of the proceeds

from the auction. Assisting the charity in planning for the sale of your

collection ensures that the charity will receive the maximum return

without exhausting its own resources.

97

Magic: The Gathering Artist Proof Black Lotus Limited Edition (Beta)

CGC Trading Card Game NM/Mint+ 8.5 (Wizards of the Coast, 1993)

Signed by Christopher Rush

Sold for $610,000 | March 2023

98

Limitations and the Five-Year Carryover

What if you donate an item of considerable value that results in a very

large tax deduction relative to your income level?

The IRS limits the amount of a charitable income tax deduction to a

percentage of current income. If the donation is made to a qualified public

charity, and the gift is considered a related use, you can deduct the

current fair market value up to 30 percent of your adjusted gross income.

If the donation is made to a qualified public charity, but is a non-related

use, then your deduction is limited to your cost basis up to 50 percent of

your adjusted gross income. However, you can carry forward the excess

deductions for up to five years, until the amount is fully deducted.

For example, a collector with an adjusted gross income of $100,000 has

a coin that he purchased for $50,000 in 1985; it is now worth $150,000.

The collector donates it to a museum that plans to exhibit it. Because

the donation is to a qualifying organization and is a related use, he can

deduct the fair market value of $150,000, subject to a limit of 30 percent

of his current adjusted gross income. Therefore, in the current year he is

able to deduct $30,000 and can carry forward the remaining $120,000

in deductions over the next four years.

Donating a Fractional Interest

Fractional giving is a process where you donate percentages of

ownership of a collection or single object over a multi-year time frame.

The percentage that you donate is the percentage that you can receive

as a charitable tax deduction. Historically, it benefited public institutions

while it allowed the donors both estate and capital gains tax deductions.

It provided the added benefit of allowing the donor to retain possession

for a period of time, and the affiliation of the collection with the museum

has the potential to increase the collection’s value (and increase the

charitable tax deduction).

The Pension Protection Act of 2006 directs donors to gift the entire

interest in the collection to the charity within 10 years of the initial

donation, or death, whichever comes first. Also, the donee institution

must maintain substantial physical possession of the object within 10

years of the initial contribution. Since the laws involving fractional giving

remain in a state of flux, fractional gifts may be a very difficult estate

planning option. Collectors who are considering making fractional gifts

should obtain expert advice prior to gifting.

99

Charitable Remainder Trusts

A charitable remainder trust (CRT) is beneficial if you want both income

and a tax deduction, and are prepared to give up your collection now.

It is particularly advantageous if the collection has enjoyed significant

appreciation since the time of acquisition, and you are no longer

emotionally attached to it. In this arrangement, the donation is made to

the qualifying charity in trust. The charity agrees to pay you annually,

either through a fixed amount of money (annuity trust) or a percentage

of the trust’s total value (unitrust) for life, or for a set number of years (not

to exceed 20).

The benefit is that if you sold the collection yourself to create income,

the principal amount would be reduced by the taxes on the capital

gains (28 percent). In a CRT, the trustee can sell the collection tax free

and create a larger principal base. You can claim the collection’s future

or remainder value (based on IRS tables) as a charitable deduction

in the year that the property is transferred to the trust because the

trust is considered a “non-related use.” You receive your agreed-upon

payments, and when the trust period is complete, all remaining interest

in the trust passes to the charity with both you and the institution

avoiding capital gains taxes on the appreciated value of the items.

Ultimately, you receive a regular income stream, while avoiding estate

taxes and probate by transferring the asset out of the estate.

There are some caveats. Most collectibles are not “income producing

assets,” so the collection — at least most of it — may have to be sold

within the first year of the trust in order to fund it with qualifying financial

vehicles. The annual distribution to the donor must be a minimum of 5

percent of the trust’s value and a maximum of 50 percent. Additionally,

at the conclusion of the agreement, the remainder to the qualified

charity must be at least 10 percent of the initial value. These rules are

subject to change, and create a certain amount of latitude in the trust

agreement that must be negotiated between the donor and the charity.

A charitable remainder trust is a gift that keeps on giving. This may be

one of the few gifts that you ever receive from the IRS. Where else in

the Internal Revenue Code are you able to make a charitable donation,

receive an immediate tax deduction that may be carried forward if

necessary, and reduce your estate and potential estate tax while you

receive an income for a period of years without paying? You guessed it:

The 28 percent capital gain on the appreciation of your collectibles.

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Other Trust Variations

Trusts are complex legal documents that must be drafted properly or

you may lose all of the potential tax benefits. An expert is required to

avoid future complications. The trusts referred to in this section are

irrevocable and once property is transferred, only a few minor changes

are permitted without harmful results. There are a number of variations

on the charitable remainder trust known as CRATs, CRUTs and GRUTs.

At the time you transfer your collectibles to the trust, you will be entitled

to an immediate income tax deduction. Retain a qualified appraiser

who is familiar with the IRS rules, along with an appraisal to support the

value of the property.

The IRS, as we have and will discuss, has strict rules regarding the

qualifications for a qualified appraiser and appraisal. The amount of

the deduction is the fair market (not the actual cost) value of the assets

discounted over the length of the trust assuming you have owned these

objects for more than one year.

The length of the trust may be term certain (not to exceed 10 years)

or it may continue over the term of your life, or the lives of you and

your spouse. The longer the term of the trust, the less the charitable

deduction. For example, the trust distributions may endure for a

maximum of 20 years, or for the rest of your life, or for the rest of yours

and your spouse’s life.

The amount of the immediate deduction may offset only 30 percent of

your adjusted gross income in the first year; however, if the deduction

cannot be fully used in the first year, it may be carried forward for up

to five years. The trust is tax exempt and is able to sell appreciated

assets without incurring any capital gains. This means that the full sale

proceeds (not just the after-tax portion) can be invested to generate an

annual income for life for you and/or your spouse.

Here is what this means: if you sold your collection today for $3 million,

and you paid $1 million for it 10 years ago, you would likely pay the

28 percent capital gains tax, which would leave you with a $560,000

tax bill.

The net amount available for investment would be $2.44 million

($3 million, minus the $560,000 tax) that you could invest as you may

determine. However, the trust will be able to invest the entire $3 million

and provide you with an income for life, or lives, or up to 20 years at a

101

Edward VIII Gold Proof Pattern 5 Pounds 1937

PR67 Ultra Cameo NGC

Sold for $2,280,000 | March 2021

From the Paramount Collection

102

rate that the donor (you) determines with the charity. The asset is now

out of your estate and no longer subject to estate taxes.

The only other rules are that the annual distributions from the trust must

be a minimum of 5 percent of the value, and a maximum of 50 percent.

Also, when the trust ends, the remainder that goes to the charity must

be at least 10 percent of the initial value of the contribution.

This is the ideal solution for anyone whose collection has appreciated

significantly in value, who would like to sell the collection and does not

have heirs interested in owning the collectibles.

The other, less favorable, alternative is to retain the collection until you

die, at which point your heirs will receive a stepped-up basis if they

sell the assets. The assets, though, will be included in the value of the

estate, which may in itself create a tax if exemptions do not preclude

estate taxation at the time of death.

André Brasilier (b. 1929)

Chevaux au crépuscule irlandais, 1983

Oil on Canvas

38 x 57 inches

Sold for $106,250 | November 2022

Property from a Distinguished Estate, Newport Beach, California

103

How to Know if a CRT is Right For You

1. You Have Charitable Giving Intentions

By and large, a CRT is only appropriate for people who have charitable

intent. In these cases, their intentions are often longer term (sometimes,

generations beyond their lifetime), which enables them to blend

different charitable strategies including irrevocable trusts.

2. You Want to Minimize the Amount of Wealth That Will Go to Heirs

If you’re not concerned about your assets being passed down to heirs,

a CRT is a great option. In contrast, if you want to leave all your wealth

to your heirs, a CRT may not be the right fit, because the assets left in

the trust at the end of its lifetime will go to charity.

3. Your Estate is Exposed to Federal and State Estate Taxes

If you have estate tax exposure, the best approach could be to move

assets out of your estate and into a CRT. Alternatively, if you have

charitable intentions but little or no estate tax exposure, it might be best

to make a donation in the year that you choose for strategic reasons.

4. You Have a Highly Appreciated Asset

If you have a collectible that you need to convert into an income stream

and you want to do it in a tax-efficient way, a CRT could work for you.

However, you should still have charitable intent and no concern about

the asset being passed down to heirs.

TIPS FOR HEIRS: In summary, when it comes to charitable

planning and your collection, there are many options available to

you, each with benefits and pitfalls. When considering making

a charitable gift, it is extremely important that you collaborate

with your advisory team and the charitable institution to ensure

that your gift will provide both you and the organization with the

maximum benefits.

104

Nobel Auction for Ukraine

Brings $103.5 Million

Russian Journalist Dmitry Muratov Sells Nobel Peace Prize Medal

To Benefit Displaced Ukrainian Children

By Robert Wilonsky

T

he 2021 Nobel Peace Prize medal awarded to independent Russian

journalist and Novaya Gazetaeditor-in-chief Dmitry Muratov fetched

$103.5 million from an anonymous Heritage Auctions bidder at a live

global auction at the Times Center in Manhattan on June 20.

Proceeds raised from the auction went directly to support UNICEF’s

humanitarian response to the war in Ukraine and affected regions.

Heritage Auctions donated its efforts to bring worldwide attention to

Muratov’s desire to aid those impacted by the war.

“Several months ago, we at Novaya Gazeta asked ourselves what we

could do to stop the war and help these civilians get their lives back,”

105

Muratov said during the June 20 event. “We decided to sell our Nobel

Peace Prize medal through Heritage Auctions, which managed the

process very efficiently and waived all their fees and commissions

completely. We thank them for this.”

Bidding on the medal opened June 1, Children’s Day in Ukraine, and

concluded June 20, World Refugee Day, commemorating the strength,

courage and perseverance of refugees.

The medal opened live bidding at $787,500, then quickly reached $1

million; then, $2 million; then, $3 million. And each time bids reached

a round number, the auditorium burst into applause. Bidders over the

phone and on HA.com eventually drove the price past $16 million. Then,

about 23 minutes after the auction began, one phone bidder moved to

the front of the line with a bid of $103.5 million.The room erupted.

“UNICEF is honored, excited and deeply grateful to Dmitry Muratov for his

extraordinary generosity, and we are astounded by the unprecedented

response to the auction,” says UNICEF Executive Director Catherine

Russell. “This remarkable contribution will help Ukrainian children

survive this brutal war and, someday, rebuild their lives. We hope Mr.

Muratov’s gift inspires others to support vulnerable children in Ukraine

and everywhere.We also want to thank the anonymous bidder, whose

winning bid will do so much for so many.”

106

Buddy Holly & the Crickets

“The Day the Music Died”

1959 Historic Concert Poster

Sold for $447,000 | November 2022

107

Evaluating Your Collection

PART THREE

108

1870-S $3 SP50 -- 893 Engraved

PCGS. Unique

Sold for $5,520,000 | January 2023

109

9

Third-Party Authentication

and Grading

A

uthenticity and evaluation are vital matters for any collection. This

chapter concentrates on third-party grading services that are

available to grade and authenticate your collectibles. These services

are widely available for coins, sports cards and comics. Use them as

needed, but consider the cost, quality and value of grading services

for your collectibles. For many items, especially lesser-valued pieces,

grading may not be necessary.

For coin grading, the American Numismatic Association (ANA) adopted

Dr. William Sheldon’s 70-point grading system and, between 1973 and

1977, worked to establish standards for all series under the leadership

of numismatic luminary Abe Kosoff. Experts from all coin specialties

collaborated with Kosoff to develop the first official ANA grading guide,

published in 1978.

Initially, it recognized three grades to evaluate Mint State coins:

Uncirculated or MS-60; Choice Uncirculated or MS-65; and Perfect

Uncirculated or MS-70. Unfortunately, the third grade (MS-70) was

mostly theoretical, and the two remaining designations quickly proved

inadequate for the marketplace. MS-63 (Select Uncirculated) and

MS-67 (Gem Uncirculated) were added to the system and functioned

successfully for a while until the demand for closer evaluation required

additional grades. Eventually, all numbers between MS-60 and MS-70

were employed and the adjectival equivalents were eliminated.

NGC and PCGS remain the acknowledged leaders for coin grading.

The reason for their success is that they are the only firms that have

maintained sufficient dealer confidence to allow coins to be traded

routinely on a sight-unseen basis.

110

Comics and cards are generally graded on a 10-point scale, with a

“10” being the highest grade (most perfect quality). Several grading

services are listed for these collectible categories in the Appendix.

For comics, Comics Guaranty, LLC (CGC) is recognized as the most

trusted grading service.

Sports card authenticity is often entrusted to one of three major

grading houses: Professional Sports Authenticator (PSA), Beckett

Grading Services (BGS) and Sportscard Guaranty LLC (SGC). Talk

to your local card dealers, or find one online and ask which grading

service has the most credibility among dealers and collectors.

Collectors’ with autographed items use PSA/DNA to authenticate their

collectibles. They also are listed in the Appendix to this book.

Stamp collectors frequently rely on the grading services of Professional

Stamp Experts (PSE). The PSE website (see Appendix) contains

detailed instructions and an online submission kit, each of which is an

excellent guide on how to properly submit stamps for grading.

What Should You Certify?

Certification is an expensive proposition that should be approached

with caution. At $15 and up per item, the total costs — for even a

small collection — easily can run into the thousands of dollars. Not all

collectibles benefit equally from being certified. The rule of thumb, of

course, is that the finished product has to be worth more than the raw

(ungraded) item, plus the certification fee.

There are two practical reasons to certify a collectible: to determine

authenticity and to add value.

When a dealer considers buying an uncertified collectible, the guess

is how the grading service is going to grade it — and the dealer will

want to be as conservative as possible. For example, if a dealer is

looking at your 1886-O Morgan dollar and is trying to decide whether

NGC will grade it an MS-63 (valued at, say, $3,000) or MS-64 (valued

at $10,000), it will be designated as an MS-63 coin, to be on the safe

side, and offer a price commensurate with an MS-63 coin.

111

Alaska Centennial Gold Nugget

Sold for $750,000 | December 2021

112

You could, however, have the coin certified before attempting to sell

it. The upside is that if the grading service calls it an MS-64, you have

a five-figure coin. The downside is the cost of the grading fee. The

bottom line is that this issue has a significant value spread between

grades and — in our opinion — the risk is worth the expense.

Submitting Your Coins

NGC and PCGS both operate primarily through authorized dealer

networks, though both offer programs through which collectors can

directly submit coins to the grading services. Most of these dealers

frequently will submit your coins to the grading services on your behalf.

The dealer often is compensated with a rebate of approximately 20

percent of the grading fee. Don’t request part of the rebate, but do ask

for the coins to be previewed and for help determining which coins

to submit for certification. Most authorized dealers are familiar with

the standards of both grading services and can help you avoid coin

submissions on which third-party grading may not add value.

If you reside within driving distance of an authorized dealer, make an

appointment to preview the coins with them. If you are not within a

reasonable distance, you may ship your coins to an authorized dealer

of your choice. A good rule of thumb is to select an authorized dealer

who is also a member of the Professional Numismatists Guild (PNG).

The PNG is the most respected numismatic fraternal organization

and each new candidate must undergo a detailed background check

and be approved by the entire membership. Members must conduct

themselves under a strict Code of Ethics and submit to binding

arbitration in the event of disputes. Contact information for the PNG is

also included in the Appendix A.

Declaring Submission Value for Insurance

When you prepare to submit your collectibles for grading, you will be

asked to declare a value for insurance purposes. This is important

should the package become lost or the items damaged in transit

or at the grading service. Since grading and shipping fees both are

impacted by this decision, you need to determine whether the value

range is commensurate with the likelihood of loss or damage, and then

select a replacement value for the items. Third-party grading can be an

extremely important part of estate planning. Certification by a reputable

grading system will increase the liquidity of a collection when it is sold

113

because certified coins are easy to trade among dealers and on the

Internet. Your heirs and advisors will be spared the burden of extensive

(and expensive) identification and cataloging.

Third-party grading will protect your collectibles, allow your heirs to

value and identify them, and provide liquidity when the collection

is sold.

TIPS FOR HEIRS: As a non-collector, submitting items for

third-party grading and authentication for the important items

in your inheritance will provide you and your heirs with a far

greater comfort level in assessing the real value of the collection.

Because you are probably unfamiliar with the language and

nuances of the hobby, we recommend that you devote additional

time to qualifying the authorized dealer you consult. Speak

plainly about your goals and ask a lot of questions. If you are

not satisfied with the responses to your questions, don’t hesitate

to request a more detailed explanation. You can never know

too much about your inheritance, but knowing too little can be

extremely dangerous.

Louis Vuitton SS21 Virgil Abloh Malle

Courrier Lozine 110 Steamer Trunk

Sold for $87,500 | May 2022

114

1970’s Muhammad Ali WBC Heavyweight

Championship Belt Earned in Victory over

George Foreman in the “Rumble in the Jungle.”

Sold for $6,180,000 | July 2022

115

10

APPRAISAL FAQS

Do I need an Appraisal?

You may need an appraisal for a variety of purposes including:

• Gaining and maintaining accurate insurance coverage for your

property

• Evaluating federal estate tax liability in cases of death

• Evaluating federal gift tax liability

• Reporting non-cash charitable contributions to the IRS

• Assisting with estate and financial planning

• Equitably dividing assets in an estate

• Equitably dividing assets in a divorce proceeding

• Setting a valuation basis for a collateral loan

What is the difference between an appraisal and auction estimate?

An appraisal report requires adherence to USPAP guidelines, IRS

regulations, and liability agreements. Appraisals have a specific value

for a specific purpose at a specific time --- such as a fair market value

appraisal for estate tax purposes as of the date of death or a replacement

value appraisal for insurance purposes as of today’s market. Appraisals

are a

fee-based service due to the amount of research involved to

pinpoint a specific value that will often be used by a third party to

establish a basis for insurance, tax, or a loan.

Auction estimates are quick and free opinions of the current market

value of items. They are a range of value for which one would expect

to see the item sell in today’s auction market. This valuation service is

not intended for establishing a value for insurance, tax, estate planning,

collateral, or third-party transactions.

Having Your Collection Appraised

The appraisal of tangible personal property is an integral part of estate

and financial planning and collection management. Included here are

some frequently asked questions and tips.

116

How do I choose a qualified appraiser?

When hiring an appraiser, it is good practice to choose one that is

USPAP-compliant. A USPAP-compliant appraiser will have been trained

and tested in appraisal methodology, ethical standards, and advanced

report-writing skills. Continuing education is also required for appraisers

to maintain and grow their market knowledge and expertise.

Select an appraiser who has formal education and longtime experience

in the type of property being appraised.

What is USPAP?

USPAP is the acronym for the Uniform Standards of Professional

Appraisal Practice issued by The Appraisal Foundation and updated

periodically. They are the generally accepted standards for professional

appraisal practice in North America for all appraisal disciplines, including

real property, personal property, business valuation, and mass appraisal.

Are there different types of values?

Items can have many different values. Hire an appraiser who can

determine the right value under the right circumstance and date. For

example, an appraisal for estate tax or charitable contribution purposes

utilizes fair market value by law. This value is not appropriate for

insurance, as it may not be sufficient funding to make the insured whole

again after a loss.

The value type is determined by intended use and circumstance of the

appraisal. The two most commonly used value types are fair market

value and replacement value.

Fair market value is most commonly defined in Treasury Estate Tax

Regulation §20.2031-1(b) as “the price at which the property would

change hands between a willing buyer and a willing seller, neither being

under any compulsion to buy or to sell and both having reasonable

knowledge of relevant facts. The fair market value of a particular

item of property includible in the decedent’s gross estate is not to be

determined by a forced sale price. Nor is the fair market value of an item

of property to be determined by the sale price of the item in a market

other than that in which such item is most commonly sold to the public,

taking into account the location of the item wherever appropriate.”

117

Neil Armstrong’s One and Only Apollo 11 Lunar Module

Flown MS67 NGC 14K Gold Robbins Medal Directly From

The Armstrong Family Collection™, CAG Certified.

Sold for $2,055,000 | July 2019

118

Bob Dylan 1963 Original Freewheelin’ Album

w/Four Deleted Tracks

In Super-Rare Stereo.

Sold for $150,000 | July 2022

119

Replacement value is defined as the amount it would cost to replace an

item with one similar and like quality purchased in the most appropriate

marketplace within a reasonable amount of time. Replacement value

often includes not only the costs of acquiring or replicating the property,

but also all the relevant costs associated with replacement.These other

costs may include all applicable taxes and duties, framing, crating and

transportation.

How often should I update my insurance appraisal?

Check with your insurance company first for their guidelines and

recommendations for appraisal updates, but generally, we recommend

that insurance appraisals be updated every one to five years depending

on the type of property you collect to keep informed with the most

current market valuations.

How do I prepare for an appraisal, and what should I expect?

Ensure that all items being appraised are easily accessible, create a

preliminary inventory of your items, and/or take detailed photographs

of your collections. These preliminary inventories and photographs may

also help us advise you on whether an appraisal is necessary.

Having an inventory of your collection is good collection management

practice. Update the inventory as you add to or subtract from

your collection. Many collection management software programs are

available to the public. Provenance, receipts, and good photos not

only assist with the appraisal process but protect your family history by

compiling stories of how your collection was acquired to pass on your

collection’s legacy to future generations.

An appraiser may be able to determine the scope of the appraisal from

preliminary information and images provided by the client. However,

in some cases, an initial on-site evaluation may be necessary for the

appraiser to determine the scope of work.

A qualified appraiser should have the appraisal terms and conditions

outlined in an appraisal agreement, including the estimated fee for the

appraisal.

Appraisers charge an hourly or daily rate, or a negotiated flat rate

based on time or the number of items. An appraiser’s fee should not be

calculated based on a percentage of the value of the property.

120

Certain types of personal property may require grading or authentication

by outside experts. Appraisers are not authenticators or graders, and

appraisal reports are not proof of authenticity. However, appraisers

can often assist with grading and authentication services as letters or

certificates of authenticity can be obtained from the recognized authority

in each art and collectible field.

After the inspection, either by photograph or personal examination, and

after research has been concluded, appraisers will produce a written

report of their value opinions and conclusions.

Helpful Tips on Non-Cash Charitable Contributions

• Speak with a tax advisor prior to considering a non-cash

charitable contribution. It may be in the donor’s best interest to

sell the property and donate the cash, rather than proceed with

appraising property in accordance with IRS regulations.

• A Qualified Appraisal Report written by a Qualified Appraiser

is required when the fair market value of the donated item

exceeds $5,000.

• Appraisals cannot be made more than 60 days prior to the date

of donation; but they can be made any time after the donation

is made up until the taxpayer’s return is due.

• IRS Form 8283 must be completed by the donor and then

signed by both the appraiser and the donee. The donee is also

required to provide the donor with contemporaneous written

acknowledgement.

• On July 30, 2018, the IRS announced final regulations that

define who is a Qualified Appraiser and what is considered

a Qualified Appraisal. It is now more important than ever to

ensure you are hiring a knowledgeable appraiser who has both

education and experience with the items being appraised and

understands how to produce a credible appraisal report.

121

A Massive Japanese Silver

Incense Burner, Meiji Period

Sold for $250,000 | May 2023

122

Story

At the age of 8, Greg Rohan started collecting coins,

and by 1971, at the age of 10, he was buying and

selling coins from a dealer’s table at trade shows in

his hometown of Seattle. Today, as a partner and

President of Heritage Auctions, his responsibilities

include overseeing the firm’s private client group and

working with top collectors in every field in which Heritage Auctions is

active.

Sometimes outstanding auction results are the product of a brilliant

marketing strategy and the excitement generated by a once-in-a-lifetime

opportunity to own something spectacular.

Sometimes. But just as often, pre-sale estimates are blown away by

a confluence of coincidences — motives that have little to do with an

item being exceptional, and end with a collector paying far more than

an item would sell for on any other day. My favorite example of this

phenomenon came on August 7, 2000, when we sold a 1919 Denver

mint dime from the collection of a New Jersey State Senator named Lou

Bassano. Bassano was a devoted collector in his late 50s and, at the

urging of his wife, was selling off part of his coin collection to diversify

his assets. The 1919 dime was in beautiful condition — the book value

was around $30,000 but given its scarcity, we thought it could sell for

perhaps $50,000.

By the time the auction started, Internet bidding had driven it up to

$60,000, and Sen. Bassano and his wife were at the sale, looking quite

pleased. Then the floor bidding started. It quickly climbed past $100,000,

at which point there were two bidders left: a well-known collector sitting

in the back with his wife, and a well-known dealer sitting in the front row,

bidding on behalf of a collector with a discrete wave of his pen in order

to preserve anonymity.

But I noticed something funny about the bidder in the back of the room:

his wife was doing the bidding. Normally, he did the bidding, but this

time he was arguing with his wife who was gleefully waving her paddle,

Greg Rohan’s

123

keeping the auction going. I was puzzled. Did his wife even collect coins?

What was going on?

By the time the bidding ended, the dealer in the front row was the winner

at $218,500. The room broke into applause and I walked over to the

couple in the back to console them on their defeat and thank them for

driving up the price. The man was relieved: “Thank God we didn’t get

that,” he said. “She’s crazy.” His wife explained that it was his birthday,

and that it was the last coin he needed to complete a set, so she’d bid as

high as he would let her, ignoring his pleas that it wasn’t worth that much.

The next day I went over to see the dealer to deliver his purchase and

collect a check. “You were quite the star,” I told him.

“I’ve got a huge problem,” he said. “How on earth could that sell for

$218,500?”

“Well clearly it did,” I replied. He explained that he’d purchased it on

behalf of a client who hadn’t bothered giving him a limit. He’d been told

to buy the coin that was expected to sell in the $30,000-$50,000 range,

totally unaware that the bidding would carry it to more than four times

the high estimate.

“He told me to just buy the coin,” he said nervously. “But I can just hear

him saying ‘I told you to buy the coin, not take a leave of your senses.’

I don’t know what to do.”

“Well the first thing you need to do is write me a check,” I said. “I’ll put it

in my desk while you go talk to your client and if he gives you trouble and

you need more time to pay, I can wait awhile to cash it.”

Everything worked out fine in the end. The collector was, of course,

shocked to hear that he’d paid that much for it, but he honored his

commitment. I think that Sen. Bassano probably got in more than a few

“I told you so’s” on the ride back to New Jersey with his wife, who had

told him that she didn’t think coins were a good investment.

124

H

eritage was thrilled to present selections from the Estate of Myra

Janco Daniels across our Spring 2023 sales. Daniels was the arts

visionary and advertising pioneer who helped transform Southwest

Florida into a nationally recognized cultural destination. Daniels was the

founder and CEO of the Philharmonic Center for the Arts (now Artis-

Naples). While the arts were a lifelong passion, her ﬁrst career was as a

groundbreaking advertising executive in Chicago, where she was among

the ﬁrst women to head a national ad ﬁrm. Her husband, Draper Daniels,

was responsible for many famous ad campaigns, including the Marlboro

Man, and was later an inspiration for the Don Draper character on the

popular TV series Mad Men.

Daum Blown-Out Glass Vase with

Louis Majorelle Iron Mount, circa

1920

12 inches

Sold for $14,375

Opposite top:

Helen Frankenthaler

Beginnings, 2002

Screenprint in colors on handmade

paper

37 x 36 inches

Sold for $30,000

Opposite bottom:

Wolf Kahn

A Dip in the Horizon, 1990

Oil on Canvas

26 x 28 inches

Sold for $42,500

Myra Janco Daniels

Naples, Florida

The Estate of

125

126

Patek Philippe Very Rare And Important Ref. 3974J

Yellow Gold Automatic Perpetual Calendar Minute Repeating

Wristwatch With Moon Phases, circa 1991

Sold for $322,500 | October 2017

127

Selling Your Collection

PART FOUR

128

Romanee Conti 2005

Domaine de la Romanee Conti

3 banded owc

Bottle (9)

Sold for $152,500 | September 2017

Romanee Conti 2005

Domaine de la Romanee Conti

scl

Magnum (1)

Sold for $39,040 | September 2017

129

11

Selling Your Collection Through Outright Sale

T

his chapter is the first of three that outlines specific methods for

selling your collection. There are pros and cons to each method,

but the general rule for selling anything is that “time is money.”

This means that, all other things being equal, the sooner that you

receive payment for your collection—and the less effort you put into

the sale—the less money you are likely to receive. Our goal is help you

make a measured decision about the amount of time you are willing to

invest in the disposition process.

Outright sale is without question the easiest method of selling a whole

or partial collection. You present the articles to one or more buyers.

They make offers, at which point you, as the seller, either accept or

decline. The time you invest in this process is limited to the period you

spend with the collectibles at the evaluation(s); if you accept an offer,

you receive your payment and go on with your life. If you assembled

the collection, this can be devastating or it can be cathartic, but it won’t

take forever.

First, we will assume that you are offering a collection of substance to

a dealer who specializes in the field. Specialized dealers are most likely

to be able and willing buy an entire collection. It is also easier to locate

them through their advertising and they can be qualified through their

references and affiliations. What is the dealer thinking when you bring

him your collection for a possible bid?

Dealers are in business to buy collections coming through the front

door (or through the mail). Most of their advertising and their longevity

at a particular site are planned specifically to create an environment

that attracts such collections. Many collectibles are a fixed-supply

commodity. If you’re in the business, you have to acquire products to

sell, and advantageous buying is at the core of such a business.

130

We have two parties together; one who wants to sell and one who

wants to buy. Now comes the sticking point. In any transaction, the

final result reflects the combination of knowledge and leverage of the

parties. The dealer wants to buy the collection at the lowest price he or

she can pay. Their leverage is that they have the money and willingness

to acquire the entire collection and they also have the benefit of any

degree of impatience that you possess, or that they can instill in you.

You may also believe that they are more knowledgeable about current

markets than you are, as a result of their experience and credentials.

You, however, want to know that you are receiving the maximum

reasonable price for your collectibles. Your leverage is that they do not

want to let you out the door with the collection. Your knowledge and

negotiating skills are also an advantage, as is any fear you can instill in

the dealer about your willingness to not sell to him or her.

Another variable is location and how it affects the dealer’s perception

of competition. If you live in a small town with only one viable dealer

and your collection does not lend itself to selling to an out-of-state or

international buyer, the dealer’s bid may be less competitive than you

would like.

Fr. 337b $100 1878 Silver Certificate

PCGS Very Fine 35

Sold for $540,000 | January 2019

131

A dealer is bidding on two different kinds of items:

• First, there are those items for which they know they have

customers, or which are readily liquid in their retail or “high

wholesale” operations. These are items on which they can

afford to accept the lowest margins, because their carrying and

marketing costs will be the lowest, and their risk of not finding a

buyer will be minimal.

• Second, are the articles that do not fit those criteria: collectibles

that are not traded routinely and which will require greater effort

to sell. This particularly applies to bulky pieces, when additional

shipping weight is also a factor. Such items generally will be

figured cheaply because of the effort and expense necessary to

resell them at a profit. Dealers will take the time to find the “high

buyer” because that is how they make a living, but their bid will

reflect the effort and expense of finding a buyer and the risk of not

finding a buyer.

It’s easy to get upset with dealers for not reliably offering a price that

is a good deal for everyone involved; ideally, you’d be able to count on

the first dealer offering you what a collection is worth and that would

be that. Unfortunately, it doesn’t work that way—and your ability to

achieve maximum value for your collection hinges on your knowledge

of its value, your ability to articulate that knowledge to the dealer in

a negotiation, and on your willingness to explore other options if you

don’t receive an offer you believe is fair.

Here are some tips for negotiating the best deal on your collection:

• Allow Yourself a National Marketplace

The world has become a much smaller place through increasingly

rapid communications and transportation as well as widespread

Internet use. You should not limit your search for outlets to your

hometown. If your collection is significant and of substantial value,

potential sales outlets will come to you.

• Find a “Full Service” Dealer

A large dealer with strong contacts will see your more common

items as more liquid because they routinely sell this kind of material

132

as well as the more rare collectibles. They already know who the

buyers are and what they’re paying.

• Create an “Aura of Competition”

It is rarely a bad idea to obtain more than one bid on something

you are selling and never a bad idea to let a potential buyer know

that other people are bidding. This can be communicated after

you get a bid: “Is this your best offer, Mr. Smith? I know dealers

sometimes leave a little ‘wiggle room,’ but I have two other people

bidding and this isn’t that kind of negotiation.” It can also be

communicated before the negotiation even begins: “I want you to

know in advance, Mr. Smith, that I’m offering the collection for bid

to three people. Please give me your best offer the first time.”

• Display Your Knowledge in Discussing the Bid

Dealers and people handling collectibles respect those who

speak the language. You don’t necessarily have to have a deep

knowledge if you can “sell” a few key points. If you have a few

pieces in your collection that stand out, bring them up and try to

drop in a little bit of jargon from the field—perhaps some arcane

reference that suggests a deeper knowledge of the field than you

necessarily have.

• “Play the Player”

Follow up the responses to the questions above with further

questions. “You bid ____, isn’t that a little low?” If the dealer can

immediately address the questions with logic and explain an offer,

then the offer likely is at, or at least near, its maximum. Alternatively,

if he’s evasive or there’s no logic to his response, there’s very likely

negotiating room left.

• Split the Deal

Rather than offer the whole collection in one lot, offer “test” groups

for bid to get a feel for your potential buyers. Generally, there is

more control when dealing with smaller, manageable “pieces”

and more money often can be secured. There is also the “bait”

technique of letting the bidders know that there is the potential for

more to come. This perception may lead some bidders to treat you

better in the early rounds. The trade-off is more of your time.

133

Historic David “Davy” Crockett’s Bowie

Knife Deposited to the Peale’s Museum

Sold for $115,625 | June 2023

TIPS FOR HEIRS: If you are a non-collector and after reading

this chapter you want to use this method, we would recommend

strongly that you seek multiple offers. We would also recommend

that you first read and consider the options that are discussed in the

next two chapters as well.

134

When deciding where to place an item for sale, a key thing to consider

is how your object will be presented by the dealer, gallery or auction

house. While a six-figure painting may seem expensive, each year

international auction houses sell hundreds of seven-figure paintings as

part of their Impressionist, Modern and Contemporary auctions in New

York and London.

Heritage’s May 2, 2016, Modern and Contemporary Art sale in New York

was led by Abstract Expressionist Willem de Kooning’s 1968 oil on paper

laid on canvas East Hampton II. For Heritage, the important work was

able to be a star in the sale instead of just being another lot among much

higher value paintings.

When selling art and collectibles, do you want your work to be

featured, or do you want your work to be a lot buried in a massive

catalog? For East Hampton II, the painting was featured prominently

in a full-page advertisement in The New York Times and featured in

a national marketing campaign. It was placed alongside a museum-

quality selection of American and European works by household

names including Marc Chagall, Fernand Léger, Jeff Koons, Robert

Rauschenberg and Milton Avery.

The de Kooning relates to his key 1950s paintings of women. As the

catalog described in vivid language, “Here, a female figure emerges from

an amalgam of sweeping brushstrokes in red, orange, yellow and blue.

Subtle outlines distinguish her legs and body from her surroundings.

The movement of the woman’s body - her lifted legs and skirt -- hints at

sexual pleasure.”

Your exceptional objects – no matter what collectible category they fall

within – should be sold in a venue that lets it shine and advertised to

a pool of bidders who can compete for it. High quality photographs,

accompanying lot descriptions and essays, exhibitions to possible

bidders and advertising all helps introduce a work and its qualities to

potential bidders.

The result? The painting Sold for $802,000, at the top end of its estimate

of $600,000 to $800,000 and more than it sold for at its last offering

Finding the Right Venue

for the Market

135

Willem de Kooning (1904-1997)

East Hampton II, 1968

Oil on paper laid on canvas

41-3/4 x 30 inches

Sold for $802,000 | May 2016

at auction in 2011 when offered at Sotheby’s Feb. 15, 2011, auction in

London.

As Heritage noted after the auction, “This sale really solidifies our position

as the leaders in the middle market, giving collectors and consignors the

unique opportunity to see great works, often overlooked, in an elevated

evening and day sale settings.”

It’s tough to think of an $800,000 picture being considered in the middle

market, but these types of works require a seller to ask tough questions

of an auction house to help maximize value when it comes time to sell.

136

Frank Frazetta Dark Kingdom

Painting Original Art (1976).

Sold for $6,000,000 | June 2023

137

T

he objective in choosing this method is to receive more money than

you would from a direct sale. The trade-off is that it will take more

time and effort—especially when enlisting the services of several agents

to sell different parts of your collection.

Many people employ an agent to assist them in selling real estate. The

agent knows real estate values, has methods for attracting qualified

customers, and understands how to negotiate. A good dealer has the

same qualifications and contacts, but you rarely hear the term “agent”

being used in that context. Dealers would generally prefer to purchase

collections outright, and then have the freedom to resell them without

customer consultation. They may, however, accept a collection on

consignment rather than lose the deal entirely.

It often is a good idea to offer a few pieces to the dealer to sell as

agent to see how effectively the dealer sells, rather than handing

over an entire collection all at once. This allows the agent to focus

more narrowly and allows you to maintain control. The key is regular

communication and interaction between you and the agent. Items

that the agent has been given may not sell and must be returned. The

asking price may need to be adjusted downward. Above all, you must

be able to trust the agent— to have faith in the agent’s ability and to be

confident that your best interests are the agent’s priority.

An agent is generally not worth the trouble unless they can get 10-25

percent more than you would receive in a direct sale.

The first step in seeking an agent is to determine the nature of what

you plan to sell and try to match the right agent with the right product.

12

Selling Your Collectibles Through an Agent

“Sales are contingent upon the attitude of the salesman –

not the attitude of the prospect.” -W. Clement Stone

138

If your pieces are specialized, seek a specialist. If they are mainstream,

look for the following kinds of qualifications:

• Scope of Company

The agent (or agency) routinely handles articles of the same type,

condition and values as those in your collection, and has strong

customer demand for them.

• Grading Service Experience

In the case of coins, the agent (or agency) regularly submits

coins to the grading services and has a strong feeling for where

the “standard lines” of the grades are. Ideally, the agent or other

personnel in their company will have worked for a grading service

and understand both the process and “looks” (eye appeal) that

are most often are rewarded on marginal decisions. The same

principles apply for other collectibles, such as sports cards,

stamps, and certain other categories. For objects like furniture, this

may not apply.

• Regular Show Attendance

The agent (or agency) attends shows on a regular basis where

routine contact with other collectors and dealers provides a feel for

the market and provides a wide range of business contacts.

• Web Presence and Mailing List

The agent has an extensive mailing (and email) list and will present

your collection to the maximum number of potential buyers. It’s

a perfectly reasonable question to ask a dealer; top dealers are

proud of the size of their contact lists.

These qualifications promise the potential of significantly higher

returns, but you also want to choose an agent who genuinely seeks

the role. Many dealers only want to buy and sell collectibles, and

really don’t have the time or inclination to assist you as an agent.

Getting turned down is no reason for distress because enlisting a

reluctant ally is anything but ideal. After all, an agent who acts as if

selling a client’s collection is some kind of favor does not have the

seller’s best interest at heart.

139

Many variables can influence the arrangement made between a

seller and an agent, but these are the things that always need to be

discussed:

• The agent’s fees should be discussed and agreed upon in

advance. Generally, an agent should receive a percentage of

the selling price. This fee usually is

graduated and predicated on the

value of the collectibles. An agent

cannot be expected to go to the

trouble and expense of selling a $100

item for a commission of 5 percent. A

more equitable arrangement might be

a 15 percent commission on pieces

valued under $1,000 and 10 percent

on articles valued over that amount.

This is a matter of negotiation.

• A firm minimum price for each item

or group of items to be sold should

be agreed upon in advance with the

understanding that the seller must

be advised before any articles are

sold for less than this fixed price.

Relinquishing a collection to an agent

in exchange for a promise of an

agent’s best effort is not acceptable.

It should be expected that the agent

will do some research and make a

few phone calls prior to suggesting

a minimum price. Agents should be

prepared to substantiate the values

they suggest. Similarly, the seller

should not demand unreasonable

minimums. No agent worth hiring is

going to waste his or her time and

energy trying to sell articles that are

obviously overpriced.

Duane Allman’s Circa 1961/1962 Gibson

SG, Cherry, Solid Body Electric Guitar,

Serial #15263 Owned and Played by

Graham Nash.

Sold for $591,000 | July 2019

140

• Agents must agree to be totally responsible for collections while it is

in their possession. The agent selected may be the most honorable

person on earth, but still would not be immune to theft or natural

disaster. Proof of sufficient insurance coverage is mandatory. In

many cases, the most prudent strategy would be to give the agent

a limited number of collectibles to sell at any one time.

• Negotiating the minimums is a critical component of this kind of

arrangement. If you are not comfortable with the value range of

individual collectibles, it may be best to get a written offer first,

which will reveal where improvement is needed before negotiating

with an agent.

• Agents should be given the exclusive right to sell the collection for

a specific period of time. Depending on the nature of the collection,

agents may have standard practices they wish to follow. Allowing

them a set length of time to sell the collection should be separated

from the payment schedule. Within reason, the owner should be paid

as the items are sold. A good method to use is to make periodic

settlements based on time or dollar amount. If the agent is given 90

days to sell the collection, it would seem fair to request that the agent

makes payments at 30 and 60-day intervals, or when the amount

collected reaches $5,000 or more. We would be wary of an agent

who didn’t agree to this proposal. Requesting periodic payments is

also a simple and positive way to measure the agent’s performance.

• Finally, make sure that you have the agreement in writing. Good

contracts make good trading partners, and this is a business

arrangement between two parties. All terms must be spelled out

and the document signed by both parties in whatever manner

creates a binding contract in each state.

One other area where agents can be useful is in moving “bulk” coins.

Bulk is the bane of most coin dealers’ existences. Some coin collec-

tors have accumulated 10 proof and mint sets a year for 40 years

and can’t understand why the dealer is not enthused when three

wheelbarrows full of coin sets roll through the door. The answers are:

low price and low margin plus high (relative) weight. We can virtually

guarantee you that if you have an abundance of this material in your

collection, it will be bid very low as part of any outright purchase offer—

141

probably 60-80 percent of wholesale price guides. From the dealer’s

perspective, it is cumbersome, difficult to process, and likely to sit

gathering dust while more lucrative products are prioritized. In some

cases, like with certain U.S. Mint sets, you may be receiving less than

face value for the coins.

Nonetheless, there are a few dealers who specialize in the sale of this

kind of material and are the “high buyers.” Your agent for this kind

of material should know who those high buyers are and be willing to

manage the administrative functions of arranging and completing the

transactions. In return, they should either receive a mutually agreed

fixed fee, perhaps 5-10 percent, and expenses. You should still come

out ahead of the typical direct sale offer.

In summary: match the right agent with the right material, establish

realistic minimums, put the agreement in writing and communicate

regularly with the agent throughout the agreement period.

TIPS FOR HEIRS: If you are a non-collector and wish to

use this option, we recommend that you obtain an outright

purchase offer first. Use extra diligence in qualifying potential

agents, and pay close attention to having the agent(s) validate

the established minimum prices. Use the direct offers as

a comparison and make sure that the minimums offer a

significant increase. It may be even more important to offer

small test groups to become more comfortable with the

process and the agent.

The 48 Star Flag that Led

the First Americans

to Utah Beach on D-Day,

June 6, 1944.

Flown from the stern of U.S.

Navy vessel LCC 60 – the

sole guide boat at Utah

Beach–and retained by its

skipper Lieutenant Howard

Vander Beek.

Sold for $514,000 | June 2016

142

Story

Mike Sadler has been a consignment director with

Heritage Auctions since 2003. He attended the United

States Air Force Academy, flew jets for the military and

is a longtime pilot with American Airlines. Before

coming to Heritage Auctions, Mike’s unlimited access

to air travel enabled him to attend coin shows around

the nation, and to build a world-class collection that

was auctioned by Heritage Auctions in 2004. He is

known for his tremendous knowledge of rare coins, making him a

trusted colleague to many of today’s most active collectors.

My journey to the greatest discovery of my career began on October 25, 2010 with a

phone call from George M. Monroe, a retired Colonel in the United States Air Force.

The coins he was looking to sell had been in his family for a hundred years — in a

box in a closet for a substantial share of that time — and came, he was told, from

an ancestor named Frank Leach.

I was intrigued enough by the call to think it was worth a trip and so the next week

I landed in Washington D.C. When I walked into the meticulously kept condominium

in the D.C. suburbs, I had a strong suspicion something good was about to happen,

but no particular reason to think I was about to stumble into one of the greatest rare

coin discoveries in U.S. history.

The provenance — directly from Frank Leach — was a big part of the appeal;

President Theodore Roosevelt tapped Leach to run the United States Mint in

September 1907 — a position he held until August 1909. Leach died in 1929,

and 81 years later, his family was looking to sell a collection of five 1907 coins,

re-designs in response to Teddy Roosevelt’s disdain for American coins, which he

had referred to in a 1904 letter (coincidentally, later sold by Heritage Auctions in

2012, on behalf of an entirely different consignor, for $94,000) as being possessed

of “atrocious hideousness.”

The rarest piece in the collection was the 1907 Rolled Edge Eagle with satin finish,

in condition far superior to most of the other extant examples. I had a feeling that

the 1907 Rolled Eagle was special. Not knowing anything about the transfer of

rare coins, the Monroes wanted to move slowly and deliberately, making sure they

realized as much value as possible for their collection. Fortunately, Col. Monroe and

I bonded over my experience as a fellow United States Air Force Academy-trained

military pilot, and the family trusted me enough to let me leave with the coins. When

I escorted the coins back to Dallas for grading, accompanied by an armed guard,

Mike Sadler’s

143

as all Heritage Auctions employees are when transporting treasures of high value,

my colleagues confirmed my feeling. Heritage Auctions Senior Cataloger Mark

Borckardt called it “probably the most amazing 20th century gold piece I have ever

seen in my whole life.” Then he added, “This coin absolutely blows my mind.”

Then, (Heritage Auctions Numismatics Director), Ryan Carroll and Heritage Auctions

Co-Chairman), Jim Halperin, were equally impressed; Jim said it almost had the

appearance of a medal, and was unlike any of the dozens of others he’d seen. They

insisted we show it to Numismatic Guaranty Corporation chairman Mark Salzberg,

who happened to be in Dallas for a dealer grading event. Mark covered his eyes in

disbelief when he looked at the coin. “Oh my goodness,” he said. “You just don’t

see those like that.”

One of America’s smartest, most ethical coin dealers had previously offered the

family $300,000 for the collection, thinking that he could make a 10-20 percent

mark-up on the transaction. Heritage Auctions’ argument for selling the coins at

auction was simple: With specimens that were unusual and fresh to market, a

public, widely advertised auction is the only method of establishing fair market

value. With more common items — or pieces that have been sold recently — there

is a track record on which buyers and seller can base a price. But with something

like these coins from 1907, it was anyone’s guess and without an auction, Col.

Monroe might never know whether he had gotten full value.

Heritage experts initially had believed that the coins would fetch close to $500,000,

but upon having the coins graded, realized the potential was there for very

considerable upside on the Rolled Edge Eagle, which NGC finally certified as PR67.

The coins came up for sale on January 6, 2011, Platinum Night

®

for our annual

Florida United Numismatists (FUN) auction, the largest such event of the year.

Pre-sale interest had been strong, and I was able to talk the family members into

making the trip to Tampa to experience the sale in person. When the hammer

came down on the marquee lot — the 1907 Rolled Edge Eagle, PR67 — it brought

$2,185,000, an auction record for a $10 piece, and also more than any $1, $2.50 or

$5 gold coin ever had realized at auction. It was also a price far, far higher than the

coin ever could have sold for in any venue other than a highly-publicized auction

through a reputable major auction house with a broad base of satisfied clients. The

entire consignment realized $2,564,500, and the Monroes celebrated with a glass

of champagne.

As Heritage Auctions Co-Chairman Jim Halperin puts it: “Even the greatest experts

often lack the imagination to predict auction values when an item is truly special.”

144

Veronique and Gregory Peck

I

n February 2023, Heritage Auctions was honored to present Property

from The Estate of Veronique and Gregory Peck, an event that paid

tribute to the careers and philanthropy of the Academy Award-winning

actor and his philanthropist wife of nearly 50 years. The blockbuster

auction event featured numerous scripts spanning Peck’s acclaimed

film career, awards and notable contracts, landmark costumes, beloved

works of art, and various mementos the couple accrued during their

illustrious and remarkable lives.

Raoul Dufy (1877-1953). Chevaux et turfistes à Epsom

Watercolor, gouache, and pencil on Arches paper laid on card

(ARS), New York / ADAGP, Paris.

Sold for $93,750

The Estate of

145

Golden Globe “World Film Favorite of 1954”

Award Presented to Gregory Peck in 1955

Sold for $30,000

Personal Book-Bound Script for To Kill a

Mockingbird (Universal, 1962)

Sold for $84,375

146

Amazing Fantasy #15 (Marvel, 1962) CGC NM+ 9.6 Off-white pages.

Sold for 3,600,000 | September 2021

147

Selling Your Collection at Auction

“A fair price is the highest one a collector can

be induced to pay.” – Robert Hughes

T

he auction always has been and forever will be the best way to

show a product to as many potential customers as possible—and

to ensure that you receive as much value for it as possible. When the

product is rare, competing customers are important, and an auction

is frequently the best venue. There are many benefits to this method

of disposition, but the primary one is that in a good auction (a widely

advertised one with many bidders), each item should realize at least its

true worth.

An auction is a truly free market in which each article stands on its own

merits. Every item is examined carefully by those most interested in it. If

you have a collectible that is rare enough that it trades infrequently, its

current value would have to be described as uncertain. In an outright

purchase of such an item, most dealers will factor that uncertainty into

their prices unless they absolutely know they have buyers at a certain

level. A well-advertised sale by an established auction house, on the

other hand, likely will draw the attention of all the known buyers—and

any others as well. The collector community is generally a small one,

and most serious buyers are aware when objects of interest are offered

for sale, particularly at auction. When that condition exists, competitive

demand will dictate the strongest result and produce the truest value

for a particular collectible.

Finally, esoteric items—those that are not traded routinely—may

again bring the very best price at an auction. At the very least, a well-

publicized auction through a reputable auction house will instill the

peace of mind that your item was exposed to every buyer possible

in a transparent way, even if it didn’t lead to a price as high as you

had hoped. Choose an auctioneer with a strong track record for the

13

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particular genre—one who has the clientele (both mailing list and

attendance) and auction locations to put the collection in front of the

greatest number of potential buyers. When looking for an auctioneer,

consider the following qualifications:

• Financial Resources and Stability

An auction consignment is first and foremost a business deal.

As with contracting an agent, auctioneers must demonstrate

sufficient financial resources to ensure they can both effectively

conduct the sale and pay sellers at the stated settlement date.

They also must accept liability and provide full insurance against

the loss or damage of a collection.

• Longevity in the Business

An auction house is a complex operation that requires a great deal

of development to assure everything flows smoothly: consignor

and bidder bases, cataloging references and expertise, site setup

and physical security, auction flow and administrative efficiency-

flows—and that only begins to touch on what goes into it. Go with

a proven entity; after all, it’s your money that’s involved.

• Advertising Resources

Success breeds success. You can’t have the top sales without

great advertising, and vice versa. Look for the companies who are

doing the major advertising in the trade papers and on the Internet.

• Location

A company that is limited to holding auctions in locations out of the

mainstream does not have the ability to attract a large bidder base.

Some companies hold auctions in major financial centers with

good regional access, while others rely on the Internet. Comparing

web traffic rankings of different auctioneers can also provide an

indicator of web presence.

• Competitive Rates

Auction companies charge both buyer’s and seller’s fees to absorb

the expenses of the sale and turn a profit. A seller’s fee of 15 to

20% has become the standard and you should not have to pay

more, unless your collection has extraordinary “bulk” or requires

special attention. Indeed, if you have a significant collection, you

may be able to negotiate a better rate.

149

Spacecraft ID plate from Apollo 11’s Lunar Module Eagle

Apollo 11 Lunar Module Flown Spacecraft Identification

Sold for $468,500 | November 2018

Plate Display Directly From The Armstrong Family Collection™

150

• Strong Writing and Imaging

Catalog descriptions and photography create the necessary

excitement and demand for an auction’s collectibles and provide

all that is available to entice bidders who cannot attend the sale in

person. Our company, Heritage Auctions, is a pioneer in the use

of online videos and extensive descriptions presented through the

Internet as alternative cataloging media. It’s clear that this is the

wave of the future. Browse through the listings on an auctioneer’s

website and look at the photos and catalog descriptions for lots

that are in the same price range as what you’re looking to sell. If

you were the seller of those pieces, would you be happy with the

merchandising efforts?

• Professional Personnel

It takes quality personnel—and many of them—to conduct a

great auction. In qualifying auctioneers, be certain to inquire as

to the number of people that will be involved in managing your

consignment and what their roles are. Our company provides

potential consignors with a video that details the auction process

from start to finish, and other companies should at least have

literature that covers the same ground. Any company is only as

good as its people. Contact a number of reputable auction houses

to get an impression as to how they will treat your collection. Also,

read through the listings of employees on different auctioneers’

websites. Do they have specialists with impressive resumes in the

category you’re looking to sell in?

Auction is often the best venue for high-quality collectibles, particularly

if the items trade infrequently. A good auction attracts the right mix of

bidders to establish the real value for each individual piece.

If this seems the best route for you, interview potential auctioneers

to determine which of them combines the best business resources,

venues and personnel assets. Some things to consider:

• Ask the auctioneer’s Consignment Director to evaluate your

collection and make recommendations on which articles should be

auctioned and which would be better sold by another method. Ask

them to explain why.

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• Do you wish to be recognized for your collecting achievements?

Some consignors prefer anonymity, but if you desire recognition,

becoming a signature consignor involves two factors:

- Your overall collection must be of significant value. This could

vary from auction to auction, but for a rough figure, let’s use

$250,000.

- Alternatively, you may have an interesting collection of a more

specific focus—possibly all items are in one group or category.

Don’t hesitate to ask, particularly if there’s a good story behind

the collection!

• From an auctioneer’s perspective, a few high-value items are

preferable to a large collection of lower-value pieces, even if the

total value is the same: the workload is lower. You might be able to

negotiate a lower seller’s fee if you have the “right” kind of material.

• Large lots are at the other end of the spectrum. Large lots are

bulky, cumbersome to carry to auction sites and difficult to ship

once sold. They are time-consuming to catalog and require a lot

of extra effort to earn the same percentage as a single piece of

comparable lot value. Auction company personnel are not very

fond of the large lots in major auctions and neither are most

bidders, because their focus is on the more “high-powered” lots.

Auctioneers will take your large lots for a big sale, but you have

absolutely no leverage, and that’s not what auctions are all about.

In most cases, you would be better off asking the auctioneer to

bid the large lots straight up. You will probably realize greater net

proceeds and will be paid immediately.

• Keep in mind that the lowest commission rate is not necessarily the

best deal. The first consideration should be the auctioneer’s ability

to provide your collection with maximum exposure and promotion.

Saving an extra percentage point or two is meaningless if another

auctioneer could secure an extra 20 percent for your collection.

Negotiate the best possible commission you can once you’ve found

the best auction house for your collectibles; don’t pick an auction

house based solely on the commission.

• Some people sell their collectibles unrestricted and others place

a “reserve” bid to protect them from receiving what they perceive

152

Republic Chang Tso-lin silver Pattern “Mukden Tiger” Dollar Year 17 (1928)

MS62 NGC

Sold for $2,160,000 | December 202

153

to be too little. Our rule of thumb: Place reserve bids only if you

are very familiar with current markets and have good reason to

believe that you will easily realize more than the reserve elsewhere

if you “buy-back” the lot. In most cases though, if you’ve carefully

selected an auction house that will provide your pieces with

maximum exposure, a reserve will leave you with the task of

finding another method of sale with no particular reason to think

you’ll realize a higher price. Then there are the reserve fees—a

percentage that you will pay to cover expenses if the item is not

sold because of your reserve. Generally, the percentage is based

on the overall terms of your consignment and how realistic the

auctioneer thinks your reserves are. You should expect the reserve

fee to be 5-10 percent. If the amount is more than that, ask for an

explanation. Good auction houses are likely to be knowledgeable

about what an item can reasonably be expected to bring and if

they tell you your proposed reserve is too high, pay attention.

• Ask the consignment coordinator for the cost of photography

and lotting in the auctions that you are considering. For example,

in some auctions, the minimum value for a catalog photograph

may be $1,500 and in others, $2,500. The latter auction, while

possibly a better venue overall, might not be as beneficial

for your pieces valued from $1,500 to $2,400. Similarly, each

auction will have a minimum lot value. In some cases, it’s $250,

sometimes it’s $500, and in the very best of sales, it may be

$1,000. Most auction companies will allow you to combine items

to reach the minimum, but there is a limit to the number that may

be used and still receive individual, mainstream placement. The

key point for you to remember is that if your overall consignment

is a good one, you may be able to negotiate a more lenient lot

and photography standard.

Internet Auctions

Online auction websites like eBay allow you to sell your items at

auction yourself, with exposure to a wide variety of bidders at a

commission far lower than what you would pay trough a traditional

auction house. The question is whether this is a good idea. Consider

the following questions:

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When a unique item with broad popular appeal comes to auction,

anything can happen. Such was the case with the chair that J.K.

Rowling sat upon while writing the first two books in the Harry Potter

series. It was painted and signed by Rowling herself.

As CNN observed, “At first glance, it looks like a shabby, wooden chair

with colorful graffiti scrawled on it.” But those scribbles say, “You may

not / find me pretty / but don’t judge / on what you see,” and “I wrote /

Harry Potter / while sitting / on this chair.” “Gryffindor” is painted on the

cross stretcher under the seat.

The catalog description described the chair’s history in vivid detail:

“During her days as an impoverished single mother in Edinburgh, J.K.

Rowling was given a free set of four chairs for her council flat – a social

housing unit provided by the British government. This set included a

standard 1930’s-era oak chair with a replacement burlap seat decorated

with a red thistle. The latter being one of the more comfortable chairs

amongst the bunch, she favored it to sit in whilst writing the first drafts

of Harry Potter and the Philosopher’s Stone and Harry Potter and the

Chamber of Secrets – the first two books of a seven part series that

would become an international phenomenon.”

The chair would be donated to a small auction in 2002 called Chair-ish

a Child in aid of the National Society for the Prevention of Cruelty to

Children (NSPCC) where it sold for $21,000. For this auction, Rowling

used gold, rose, and green paints to transform the chair into a magical

piece of literary memorabilia, fearing that the chair in its original form

would look like it had been “purchased from a junk shop for a tenner.”

When it traded next in 2009 in an eBay auction benefiting the charitable

organization Books Abroad, it sold for the U.S. equivalent of nearly

$30,000. It was purchased by Gerald Gray, the CEO of AutoKontrol

USA, who consigned it with Heritage in 2016. Gray planned to donate

10 percent of the winning price to Lumos, Rowling’s children’s charity.

The Harry

Potter Chair

Marketing at Work

155

Heritage shared the story with media outlets around the world, a physical

object representative of a woman’s against-all-odds struggle to share

her creative vision. In a letter accompanying the chair, Rowling said, “My

nostalgic side is quite sad to see it go, but my back isn’t.”

As part of Heritage Auction’s global public relations campaign, the

chair went on display at its Park Avenue, New York, office on a custom

rotating platform. For weeks, families posed for photos with what is

arguably the most important piece of Harry Potter memorabilia that

exists. The $394,000 it brought at Heritage

on April 6, 2016, was many multiples of

its opening bid of $45,000. The winning

bidder, who elected to remain anonymous,

also received Rowling’s signed letter “by

Owl Post” describing the history and

provenance.

Gray, who attended the auction at the

Waldorf Astoria hotel in New York City

hoped that it would eventually go on

display where fans

could appreciate it.

But even if it stays in

a private collection,

through extensive

marketing, Heritage

was able to share the

story of this magical

chair with millions of

Harry Potter fans.

Chair Used by J.K. Rowling

whilst Writing the First Two

Harry Potter Books, Later

Hand-Painted and Signed by

Rowling Herself.

Sold for $394,000 | April 2016

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• Do you already have a “feedback” rating that will give you

credibility with the bidder base? Many Internet auction bidders are

concerned about online deal-making with people they don’t know.

The equalizer is the feedback system that lets buyers and sellers

build online reputations. If you don’t have a feedback rating, many

bidders will avoid your auctions altogether and others will bid less.

• Do you have the equipment and skill to create digital images of the

articles to be auctioned? Items without high-quality images just

don’t sell as well. For quality coin photography, you’ll need a digital

camera and the knowledge to upload those photos.

• Do you have the skills to write descriptions for each item? Do you

know enough about the piece—and how to grade condition—to

describe it? Auction bidders are best motivated when a “story” is

available to make the collectible more interesting. The visual image

and description provide the combination that maximizes an Internet

auction’s results.

• Do you have the business skills to analyze potential problem

situations? Can you collect a bad check or determine whether a

“special request” from a customer is legitimate or a scam? Most

of the people on the Internet are honest, but there are exceptions.

Unfortunately, it doesn’t take many bad deals to turn a profitable

situation into a loss.

• Do you have the knowledge and resources to ship high-dollar

packages to 100 different people? It takes a thorough knowledge

of postal regulations and requirements, a considerable amount of

shipping materials and insurance, and a great deal of organization

and time.

• Do you really want to sell collectibles that might have upside

potential in an Internet-only venue? More to the point, are you able

to ascertain which pieces might have that upside potential?

We routinely advise would-be consignors to list certain items on eBay:

Hummel figurines, common post-1970 baseball cards, and small

quantities of items that aren’t rare enough to justify a consignment

to a full-service auction house. But for high-value items that require

specialized marketing or a seller with credibility in the field, we aren’t

shy about saying it: auctions are the way to go.

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TIPS FOR HEIRS: A major auction can be the best option

for heirs faced with the disposition of a valuable collection,

particularly if you have little or no knowledge of collectibles and

are concerned about receiving fair value. In this scenario, the

auctioneer is working on percentage, and your best interests and

theirs are the same: the more money you make, the more money

they make. Additionally, the values will be established by third

parties in the competitive bidding process. The real benefit of

engaging a major auction house is its versatility.

Summing up all of the methods of disposition, certain collectibles

are better suited for one method, while others would benefit

more from a different venue. A major company should be

willing to recommend the best venue for each of your pieces

and divide the collection to your best advantage. Just be sure

to ask. Heritage’s Trusts & Estates Department assists in just

such situations and can coordinate the sale of an estate through

various venues and categories of property – HA.com/Estates.

An Impressive Santa Cruz Islands Feast Bowl

Solomon Islands, c. late 19th to early 20th century

Sold for $68,750 | June 2023

158

Oscar Heyman Diamond, Ruby, Emerald, Gold Brooch

Sold for $40,000 | December 2021

Property from the Estate of Kittie West Nelson Ferguson

159

Etiquette & Tips

“Tact is one of the first mental virtues, the absence

of it is fatal to the best talent.” – William Gilmore Simms

“Etiquette means behaving yourself a little better

than is absolutely essential.” – Will Cuppy

14

T

he purpose of this book is to help you plan for the future and, if you

wish, to help you dispose of your collection without being taken

advantage of by the government, dealers or other collectors.

It is reasonable to assume that you want to receive as much money

for your collection as possible. Similarly, it is reasonable to believe that

potential buyers would want to pay the least amount they can. The one

thing that is absolutely certain is that everyone else will maximize his or

her own interests. You should, too.

There are certain rules of etiquette within any collectibles community.

The first premise is the division of roles. If you present yourself as

a dealer, you are automatically responsible for all your actions and

decisions in the arena of that collectible. That means if you make a

mistake, you live with it. It also imparts a certain level of responsibility

toward those who are not dealers. Dealers trade with each other at

wholesale levels, in part because they communicate in the same form

of verbal shorthand that assumes a level of expertise. A collectible is

presented, offered, inspected and purchased (or not) without fanfare,

and the principals move on to the next deal.

Conversely, many collectors ask a lot of questions (and rightly so),

are nervous about their acquisitions, and return a portion of those

purchases after the sale. In return for this extra “maintenance,” dealers

charge collectors more and pay them less than they would another

dealer. It is the way of the business, and perfectly justifiable, as there

have to be both retail and wholesale levels for any market to function.

Naturally, most collectors would like to purchase at wholesale, and

occasionally, they are awarded that opportunity. Usually, the key to this

160

is demonstrating a familiarity with wholesale market levels, negotiating

pleasantly and well, and asking only pertinent questions.

The same is true on the selling side. If you give others the impression

that you know what you are doing, you will receive the best bid or

options the first time around. We recommend, however, that you do not

present yourself as a dealer. Some collectors claim to be “vest pocket”

dealers in hopes of receiving higher offers. Usually, this backfires, as

the dealer then feels relieved of any obligation he may have to point out

to you unrecognized rarities. Be upfront, but be competent.

As a non-professional, you should be able to expect:

• An appointment to allow sufficient time to evaluate your collection.

• Financial and industry references at your request (and you should

request them).

• Professional treatment of you and your collection, and quality

security.

• You should request (prior) that any items bid at $1,000 or more

be identified singly and that any article that would benefit from

certification be listed.

• A written offer presented in a timely manner. The offer should be

dated and any deadline noted.

• If the company has an auction house as well, and you request it,

recommendations on which collectibles are better suited for auction

or direct sale should also be listed.

• Prompt payment in good funds if the offer is accepted. If the

collection is sold at auction, payment in good funds on the settlement

date as promised.

The dealer has a right to expect certain conduct from you as well:

• That you keep any scheduled appointment and are prompt. This

applies to the dealer and their staff as well.

• The collection should be as organized as possible to minimize the

time necessary to evaluate and bid on it. Even a basic inventory

161

indicating the location of each item is helpful. If the collection

lends itself to grouping, this should be done beforehand. If one

group out of the collection contains most of the “value,” it can be

presented separately.

• You should not “shop” the dealer’s offer to other dealers. It’s okay

to tell each bidder that other bids are being sought, but you should

neither reveal what the other bids are, nor the details of who is

bidding. Shopping an offer for a few more dollars is strictly “bush

league,” and it can definitely backfire. For example, if your first bidder

did not make a strong bid and you reveal the number, the second

bidder may play the competition instead of the real value and you will

come up short. Similarly, if you reveal the identity of those you plan to

see, the bidders could collude with one another to your disadvantage.

Remember, the aura of unknown competition is the strongest

leverage you have to inspire dealers to figure the deal closely and

make their best bids.

• You should tell the dealer “yes” or “no” in a reasonable amount of

time, and that applies even if you accept another bid. It would be

considerate for you to let them know the winning bid. They can

learn from the experience and not feel that their time was wasted.

That can be to your advantage as well, because if you bring back

more collectibles for them to bid, they should both appreciate your

professionalism and bid higher the next time.

Above all, you should both expect and extend courtesy. Do not waste

time with a dealer who is discourteous, nor waste time responding.

Ask and answer questions, but beware of becoming agitated, even if

you disagree with something you hear. Your mission is to obtain the

greatest possible price for your collection. To accomplish this, it is

usually best to reserve judgment until all of the information has been

gathered. The very person you disagreed with may be the highest

overall bidder.

One final option for selling: Occasionally people ask us why they

shouldn’t dispose of their collectibles to, or through, another collector.

The premise is that the collector would pay more and the playing field

would be more level. There is some general merit to those statements,

but there are some caveats as well:

• A collector will pay more for some items, but will rarely pay more for

all of them. Take care that you don’t receive a little more for the best

162

few pieces of your collection only to find that there are no buyers for

the less favorable material.

• Being a collector in and of itself is no guarantee that the individual

you contact is any more or less knowledgeable or ethical than a

dealer. In general, dealers are better-informed on current market

conditions, upgrade potential and the reputations of potential buyers.

We know of at least one situation where a collector acquaintance

sold a collection for heirs, only to take a bad check from the buyer.

That individual was well known as a “bad egg” by the dealer

community, but the collector/agent was totally unaware. It took

more than a year and considerable expense for the heirs to collect a

fraction of the amount owed.

• As an agent, the collector is less likely to have insurance coverage for

your collection while in their care. If you use a collector, don’t forget

to verify this just as you would with a dealer.

• Most importantly, few collectors will truly be interested in acquiring

everything you have—and if they are willing to buy in bulk from you, it

will likely only be because they are interested in getting a great deal.

The bottom line is that you should qualify a collector in the same

manner as you would a dealer. Although collectors may have good

intentions, a major collection should be sold only with the assistance

of a qualified professional. It is unwise to rely on a part-time hobbyist

to dispose of a major financial asset; a better approach is to use an

auction to let that collector bid against tens of thousands of similar

hobbyists.

Heir Relations

The final issues of etiquette are the relationships between collectors

and their heirs, and between the heirs themselves. Collectors, as the

owners, have all the rights and responsibilities for the collection in their

lifetimes, and can provide as much or as little guidance as they please.

Any guidance is better than no guidance. Even if few of the heirs have

any interest in the collectibles, a general understanding goes a long

way towards familial harmony. The collectors should identify and detail

any specific bequests they wish to make. “Dad split them up that way

in the will” is a lot more powerful than “I’m sure Dad wanted me to have

this one.”

163

A Pair of French Napoleon III Gilt Bronze Mounted Covered Urns

on Fluted Rouge Marble Columns, 19th century

Sold for $106,250 | August 2021

Property from the Estate of Phyllis McGuire, Las Vegas, Nevada

164

Similarly, the collector should indicate who should be contacted to

help dispose of the collection—and who should not. It’s amazing how

many “old friends” can appear after the death of a known collector.

The executor or trustee, whether he or she is a family member or not,

should be advised of all these details.

Heirs should remember that the other heirs are also probably under a

great deal of stress—so try to give everyone the benefit of the doubt.

We like to think that family is the most important thing, so here are

some tips to avoid controversy if the collection needs to be sold or

disposed of equitably when specific guidance was not provided by

the deceased:

• Leave the division to a third party. If the collection is not to be sold,

have the appraiser separate the inventory into the appropriate number

of groups by value.

• If one or more heirs want specific pieces, have the appraiser value

those individually and if the remainder of the collection is sold, use

those amounts to adjust shares accordingly.

• If the collection is to be disposed of, but each heir wants “something”

to remember the deceased by, determine the dollar value that you

want to set aside and have each heir “buy” the collectibles they want

at the appraised price.

• In all cases, remember to keep things in perspective. The collection

once provided a great deal of pleasure to your loved one, and try to

let its legacy reflect that.

The preparation of this handbook has been a labor of love, though

by no means easy. There are two main reader groups that have been

targeted by this treatise, neither of whom should be overjoyed by

the implications of having to read through it. If you are a collector,

the thought of estate planning may make you look closer at your

own mortality. If you are an heir or possible heir of a collector,

contemplating a loved one’s mortality is probably no more enjoyable.

We would take more pleasure in relating a more upbeat subject, but

we will be satisfied if this handbook has made it a little easier for you to

address a very difficult task.

165

G. (Gerald Harvey Jones) Harvey (American, 1933-2017)

When Cowboys Don’t Change, 1993

Oil on canvas

40 x 60 inches

Sold for $516,500 | November 2018

WORLD AUCTION RECORD FOR THE ARTIST

We offer, in closing, this final guidance regardless of your circumstance

or role:

1. Determine your goal.

2. Know your options.

3. Analyze them and pick the best course of action for you.

4. Make a plan.

5. If you need assistance, choose it carefully.

6. Above all, remain flexible and don’t be afraid to adjust your

plan as you go along.

7. Form a team of the best advisors available and pay the price

now rather than later.

Good luck!

166

Story

Jim Halperin is the co-founder and co-chairman of

Heritage Auctions. He formed his first rare coin business

at the age of 16, then dropped out of Harvard in

December 1971 to pursue a career in numismatics. He

also is the author of two bestselling futurist novels, and

endows The James & Gayle Halperin Foundation,

which supports health and education-related charities.

You can view his personal collections at: www.jhalpe.com.

Even though I callously had disappointed my dad by deciding not to

graduate from his alma mater, he remained steadfastly supportive. By

1975, at age 22, I was ready to computerize my growing coin business

in Framingham, Massachusetts, and my dad, who at the time was 49

years old and had sold his own successful manufacturing business a

decade earlier, offered to come in part-time and help me. I jumped at

the offer. Together we set up the first full-fledged computer system in the

coin business, an IBM 360 mainframe, and when we were finished, he

had an idea — a sort of parting gift soon before he and my mom would

begin spending most of their time in Florida.

My dad’s idea was to set up a rare coin fund; he would recruit investors

to buy shares in a limited partnership, and I would use the money to

buy coins, store them in a safe deposit box, wait a few years, and then

sell them at auction. Using his many contacts — and cold-calling on,

among others, Fidelity Investments founder Ned Johnson, who invested

$30,000 on the spot — he quickly raised $375,000. We called it the

New England Rare Coin Fund. Now all I had to do was buy the coins.

Having worked in the business since I was 16, I spent about 18 months

slowly acquiring high-grade American rarities because I knew that those

were the coins that sold the fastest whenever we had them available. I

bought only specimens that I would have loved to own but couldn’t have

otherwise afforded to keep in inventory.

Jim Halperin’s

167

The economy had been in a moderate recovery when I’d bought the

coins, but when it was time to sell a few years later, the timing could

not have been better. By 1980, the Iran hostage crisis was under

way, inflation had soared to 13.5 percent, and bank failures were

heading toward the highest levels seen since the Great Depression.

Unemployment was over 7 percent. Investors — from hedge funds

to retirees — were seeking scarce physical objects unencumbered

by complex financing arrangements, with aesthetic and historical

significance that no oil crisis could ever taint.

When the collection was sold at auction in April of 1980, our investors

in attendance stared in disbelief. Those same coins generated more

than $2.15 million and, after all commissions, expenses and fees, every

investor who put in $15,000 got back more than $69,000. This, at a time

when they had been watching most or all of their other investments tank.

The profits from our little coin fund rescued businesses, saved homes,

and even helped a couple of our investors avoid filing bankruptcy.

I was now 27 years old, and the experience would help me develop

my own philosophy about investments — and the importance of

owning a portfolio that Nassim Nicholas Taleb, the internationally

bestselling author/hedge fund manager/philosopher, has recently

termed “antifragile.” That is, a basket that encompasses a diversity of

assets, including some that are debt-free and likely to gain in value just

as the world around them is collapsing.

Of course, there are many ways to diversify assets — but including

some treasures that provide their owners with joy and beauty is, for my

money, one of the best.

168

Joseph Christian Leyendecker (American, 1874-1951)

Beat-up Boy, Football Hero, The Saturday Evening Post cover, November 21, 1914

Sold for $4,121,250 | May 2021

169

APPENDICES

170

APPENDIX A

ORGANIZATIONS FOR COLLECTORS

Autographs

Universal Autograph Collectors Club

UACC P.O. Box 1392

Mount Dora, FL 32756

uacc.org

Founded in 1965, this non-profit organization publishes a quarterly journal and

offers information on authentication and recommended dealers, and a list of

dealers it recommends consumers avoid.

Coins

American Numismatic Association (ANA)

818 North Cascade Avenue

Colorado Springs, CO 80903

719-632-2646

E-mail: ana@money.org

money.org

The American Numismatic Association is the country’s largest collector

organization for coins and related items. Formed in 1891, the ANA offers

extensive educational programs and a monthly magazine, The Numismatist.

Its Colorado Springs headquarters features a first-rate museum and library

that are available to members and non- members alike. The ANA offers

renowned summer seminars on a number of numismatic subjects and holds

two conventions annually. These shows offer 250 to 500 bourse tables and

significant auctions. The annual convention auction (held in July or August) is

frequently the highest-grossing auction sale of the year.

Professional Numismatists Guild (PNG)

28441 Rancho California Rd., Suite 106

Temecula, CA 92590

951-587-8300

E-mail: info@pngdealers.com

pngdealers.com

The Professional Numismatists Guild is the preeminent dealer group in

the coin industry. Formed in 1955 with the motto, “Knowledge, Integrity,

Responsibility,” the PNG accepts members only after stringent background

and financial investigations, and a vote of the entire membership. Members

agree to uphold a strict code of ethics and to resolve any complaints

against them through binding PNG arbitration. A list of PNG dealers is

available from the organization.

171

American Numismatic Society (ANS)

75 Varick Street, 11th floor

New York, NY 10013

212 571 4470

E-mail: info@amnumsoc.org

amnumsoc.org

The American Numismatic Society was founded in 1858, and is dedicated

to the serious study of numismatic items. To that end, it has an extensive

research library and world-class collections, and provides members and

visiting scholars with a broad selection of publications, topical meetings

and symposia, fellowships and grants, honors and awards, and various

educational projects.

Minerals

The Mineralogical Society of

America

3635 Concorde Pkwy Suite 500

Chantilly, VA 20151-1110

703-652-9950

Email: [email protected]g;

minsocam.org

It’s not Heritage’s biggest or best-

known category—but it’s pretty cool:

minerals and meteorites. Individual

pieces in our past minerals sales

have sold for more than half a million

dollars. The Mineralogical Society

of America, foundedin 1919, offers

magazines, books, and educational

programs for the general public.

Stamps

American Philatelic Society (APS)

100 Match Factory Place

Bellefonte, PA 16823

814-933-3803

E-mail: webmaster@stamps.org;

stamps.org

The American Philatelic Society was founded in 1886 and offers members

a monthly magazine, an authentication service, educational opportunities,

and much more. Through a partnership with Hugh Wood, Inc. and The

Chubb Group of Insurance Companies, it also offers a service for insuring

stamp collections.

Topaz

Xanda Mine, Virgem da Lapa

Minas Gerais, Brazil

Sold for $200,000 | August 2019

172

APPENDIX B

INSURANCE COMPANIES OFFERING SPECIALIZED

COVERAGE FOR COLLECTORS

COLLECTIBLE AND NUMISMATIC COVERAGE

Cleland & Associates

3419 Westminster Ave. #301G

Dallas, TX 75205

409-766-7101

Contact: Richard Cleland

coininsurance.com

North American Collectibles

Association

3002 Hempland Rd. Suite B

Lancaster, PA 17601-1362

800-685-6746

Contact: Barbara Wingo

nacacollectors.com

Hugh Wood, Inc.

(American Agent for

Lloyds of London)

One Exchange Plaza

55 Broadway, 24th Floor

New York, NY 10006

212-509-3777

Contact: Jack Fisher

hughwood.com

SEARCH EACH OF THESE NATIONAL WEBSITES

FOR AN AGENT OR BROKER NEAREST YOU

American International Group

(formerly Chartis)

Private Client Group

aigpcg.com

AXA Art Insurance

212-415-8400

axa-art.com

Chubb Group

of Insurance Companies

866-324-8222

chubb.com

Huntington T. Block

Insurance Agency

800-424-8830

huntingtontblock.com

Pure Insurance

888-813-7873

pureinsurance.com

Marsh Private Client Services

pcs.marsh.com

Dale Chihuly (American, b. 1941)

Cobalt Macchia with Huckleberry Lip

Wrap, 2003

Blown Glass

16-1/2 x 35 x 31 inches

Sold for $37,500 September 2021

Property from the Estate of Richard L.

Weisman, Beverly Hills, California

173

Casablanca (Warner Brothers, 1946).

First Post-War Release Italian 4 – Fogli

(55.5” X 78.25”) Luigi Martinati Artwork.

Sold for $478,000 | July 2017

174

APPENDIX C

THIRD-PARTY GRADING SERVICES

BASEBALL CARDS

Sportscard Guaranty Corporation

(SGC)

951 Yamato Rd, Suite 110

Boca Raton, FL 33431

800-SGC-9212

973-984-0018

sgccard.com/grading-fees

Professional Sports Authenticator

(PSA)

P.O. Box 6180

Newport Beach, CA 92658

800-325-1121,

949-833-8824

Email: info@psacard.com

Beckett Grading Services (BGS)

beckett.com/grading

COINS

Numismatic Guaranty Corporation

of America (NGC)

P.O. Box 4776

Sarasota, FL 34230

800-NGC-COIN

941-360-3990

ngccoin.com

ANACS

P.P.O. B ox 6 0 0 0

Englewood, CO 80155

800-888-1861

anacs.com

Professional Coin Grading Service

(PCGS)

P.O. Box 9458

Newport Beach, CA 92658

800-447-8848

949-833-0600

pcgs.com

COINS NEEDING CLEANING

OR CONSERVATION

Numismatic Conservation Services

(NCS)

P.O. Box 4750

Sarasota, FL 34230

1-866-627-2646

1-941-360-3996

ncscoin.com

COMICS

Comics Guaranty Corporation

(CGC)

P.O. Box 4738

Sarasota, FL 34230

1-877-NM-COMIC

1-941-360-3991

FAX: 941-360-2558

cgccomics.com

CURRENCY

Paper Money Grading (PMG)

P.O. Box 4755

Sarasota, FL 34230

877-PMG-5570

941 309 1001

PMGnotes.com

PCGS Banknote

P.O. Box 9458

Newport Beach, CA 92658

800-447-8848

www.pcgs.com/banknote

175

APPENDIX D

SELECTED PUBLICATIONS FOR COLLECTORS

Artwork & Paper Collectibles

How to Care for Works of Art on Paper,

by Francis W. Dolloff and Roy L. Perkinson

Conservation Concerns: A Guide for Collectors and Curators, by Konstanze

Bachmann, Dianne Pilgrim

Caring for Your Art, by Jill Snyder, Joseph Montague, Maria Reidelbach

Baseball Cards

The Official Price Guide to Baseball Cards, by James Beckett

Books & Manuscripts

Antiquarian Booksellers Association of American (ABAA.org) posts links

to member-published books and articles on collecting Rare Books and

Manuscripts

How to Identify and Collect American First Editions, Arco Publishing, New York

(1976) – (out of print; you’ll probably have to find a rare copy)

We also recommend: ABEBooks.com as a source of books on the Internet

Coins

The New York Times Guide to Coin Collecting: Do’s, Don’ts, Facts, Myths, and

a Wealth of History, by Ed Reiter

How to Grade U.S. Coins, by James L. Halperin

A Guide Book of United States Coins, by R. S. Yeoman

The Standard Catalog of World Coins, by Chester Krause & Clifford Mishler

Comics

The Official Overstreet Comic Book Price Guide, by Robert M. Overstreet

(available digitally at HeritageComics.com)

Furniture

The Bulfinch Anatomy of Antique Furniture: An Illustrated Guide to Identifying

Period, Detail, and Design, by Tim Forrest, Paul Atterbury

American Antique Furniture: A Book for Amateurs,

Vol. 1., by Jr. Edgar G. Miller

Miller’s Collecting Furniture: Facts at Your Fingertips, by Christopher Payne

176

Guns

The Gun Digest Book of Modern Gun Values: For Modern Arms Made from

1900 to Present (16th Ed.), by Phillip Peterson

Standard Catalog of Military Firearms: The Collector’s Price and Reference

Guide (6h Ed.), by Phillip Peterson

Antique Guns: The Collector’s Guide, by John E. Traister

Jewelry

Signed Beauties of Costume Jewelry: Identification & Values, by Marcia

Sparkles Brown

Vintage Jewelry: A Price and Identification Guide, 1920 to 1940s,

by Leigh Leshner

Antique Trader Jewelry Price Guide, by Kyle Husfloen and Marion Cohen

Paintings & Sculpture

AskART.com

ArtNet.com

Toys

Official Hake’s Price Guide to Character Toys, by Ted Hake

Cartoon Toys & Collectibles Identification and Value Guide, by David Longest

All Collectibles & Fine Arts

Maloney’s Antiques & Collectibles Resource Directory,

by David J. Maloney, Jr.

Warman’s Antiques & Collectibles 2016 Price Guide, by Noah Fleischer

For additional resources in all collector categories, please

visit our Resources list at HA.com, where we also invite

you to take our Collector Survey to qualify for free auction

catalogs and a drawing to win valuable prizes.

177

La Tache 1988

Domaine de la Romanee Conti

The Estate of a Pennsylvania Gentleman

Sold for $44,280 | September 2022

178

About the Authors

James L. Halperin

Born in Boston in 1952, Jim formed a part-time rare stamp and coin

business at age 16. The same year, he received early acceptance

to Harvard College. But by his third semester, Jim was enjoying the

coin business more than his studies, so he took a permanent leave

of absence to pursue a full-time numismatic career. In 1975, Jim

supervised the protocols for the first mainframe computer system in the numismatic

business, which would help catapult his firm to the top of the industry within four years.

In 1982, Jim’s business merged with that of his friend and former archrival Steve Ivy to

form Heritage. In 1984, Jim wrote a book later re-titled “How to Grade U.S. Coins”, which

outlined the grading standards upon which NGC and PCGS would later be based. Jim

is also a well-known futurist, an active collector of rare comic books, comic art and early

20th-century American art (view parts of his collection www.jhalpe.com), venture capital

investor, philanthropist (he endows a multimillion-dollar health education foundation), and

part-time novelist. His first fiction book, “The Truth Machine”, was published in 1996,

became an international science fiction bestseller, was optioned as a feature film by

Warner Brothers, and is now under development at Lions Gate. Jim’s second novel, “The

First Immortal”, was published in early 1998 and optioned as a Hallmark Hall of Fame

television miniseries. All of Jim’s royalties are donated to health and education charities.

Gregory J. Rohan

At the age of eight, Greg Rohan started collecting coins and by 1971,

at the age of 10, he was buying and selling coins from a dealer’s table

at trade shows in his hometown of Seattle. His business grew rapidly,

and in 1987, he joined Heritage as Executive Vice-President. Today,

as a partner and as President of Heritage, his responsibilities include

overseeing the firm’s private client group and working with top collectors in every field

in which Heritage is active. Greg has been involved with many of the rarest items and

most important collections handled by the firm, including the purchase and/or sale

of the Ed Trompeter Collection (the world’s largest numismatic purchase according

to the Guinness Book of World Records). During his career, Greg has handled more

than $1 billion of rare coins, collectibles and art. He has provided expert testimony

for the United States Attorneys in San Francisco, Dallas, and Philadelphia, and for the

Federal Trade Commission (FTC). He has worked with collectors, consignors, and their

advisors regarding significant collections of books, manuscripts, comics, currency,

jewelry, vintage movie posters, sports and entertainment memorabilia, decorative arts,

and fine art, to name just a few. Greg is a past Chapter Chairman for North Texas of

the Young Presidents’ Organization (YPO), and is an active supporter of the arts. Greg

co-authored “The Collectors Estate Handbook,” winner of the NLG’s Robert Friedberg

Award for numismatic book of the year. He previously served two terms on the seven-

person Advisory Board to the Federal Reserve Bank of Dallas.

179

Adam Smith. An Inquiry into the Nature

and Causes of the Wealth of Nations.

Sold for $125,000 | July 2022

180

Dallas - World Headquarters

Beverly Hills

Chicago

London

New York

Amsterdam

Hong Kong

Palm Beach Brussels

181

About Heritage Auctions

Founded in 1976, Heritage Auctions is America’s auction house and the

world’s largest collectibles auctioneer with annual topping $1.45 billion in

both 2021 and 2022. Heritage clients enjoy unprecedented access to 1.75

million+ online bidder members and unparalleled standards of honesty and

transparency as well as the latest advancements in technology via HA.com.

Through 50+ categories – from U.S. and foreign coins to fine art and now

luxury real estate auctions – Heritage Auctions offers a broad range of services

for high net worth collectors, investors and fiduciaries from offices in Dallas,

New York, Beverly Hills, Chicago, Palm Beach, London, Brussels, Paris,

Amsterdam and Hong Kong.

Heritage Auctions offers consignors an unmatched depth of expertise with

access to 6.1 million+ lots featured in Heritage Auctions’ free Auction Archives

and a network of 500+ specialist employees around the world.

We are always looking to acquire interesting items, whether through

consignment or by outright purchase, and we spend or disburse millions of

dollars every business day, on average, to keep our clients’ demands satisfied.

Find out why you should consign to a Heritage auction at HA.com/Consign.

Heritage Trusts & Estates Services

Individuals and collectors, as well as trustees, executors and fiduciaries

responsible for estate tangible property, can avail themselves of the best suite

of estate services anywhere, including authoritative estate appraisals, estate

planning assistance, auction services and private treaty sales.

Inquiries: Michelle Castro, Vice President, Trust & Estates,

214-409-1824 or 877-HERITAGE (437-4824) ext. 1824, MichelleC@HA.com

Heritage Auctions Appraisal Services, Inc.

Heritage offers the highest caliber of experts to evaluate and appraise your art

and collectibles. Working with our appraisal team, you will receive thorough,

illustrated appraisal reports written in compliance with all IRS, USPAP and

insurance standards. At competitive rates, a Heritage appraisal should be

considered for all Estate Tax, Charitable Donation, Insurance, Estate or

Financial Planning situations.

Inquiries: Carol Lee Pryor, Director of Appraisal Services,

214-409-1138 or 877-HERITAGE (437-4824) ext. 1138, CarolLeeP@HA.com

DALLAS | NEW YORK | BEVERLY HILLS | CHICAGO | PALM BEACH

LONDON | PARIS | BRUSSELS | AMSTERDAM | HONG KONG

Always Accepting Quality Consignments in 50+ Categories

1.75 Million+ Online Bidder-Members

Paul R. Minshull #16591. BP 15-25%; see HA.com 73164

1966 Baseball Hall of Fame Induction Ring Presented to Ted Williams.

Sold for $444,000 | May 2023

THE COLLECTOR’S HANDBOOK

73164

Tax Planning, Strategy and Estate

Advice for Collectors and Their Heirs.

As a collector, you know your collection inside and

out. But do your potential heirs? In clear, practical

terms, industry veterans James L. Halperin and

Gregory J. Rohan provide you with invaluable

guidance on how to:

• Document your collection

• Safeguard your collection

• Evaluate your collection

• Sell your collection

• Minimize taxes upon transfer

• Make the most effective charitable gift

• Help your heirs ... and much more.

Completely revised and updated to include the

most recent federal tax law changes and new

information on collectibles and charitable planning,

The Collector’s Handbook will help you protect

your investment. Whatever your motivations in

collecting, this book will help make you a more

intelligent collector.

U.S. $14.95

“When it comes to collectibles, no one

knows more than the folks at Heritage.”

– ANDREW TOBIAS

New York Times Bestselling Author of

The Only Investment Guide You’ll Ever Need