A million dollars worth of artis quite a collection! But this illiquidasset isnâ€™t exactly helping oneâ€™s heirs upon death. When it comes to burialcosts, cash is still king. The family of Merton D. Simpson knows this all toowell, as they encountered this challenge upon Mr. Simpsonâ€™s death.
In short, â€œilliquid assetsâ€ canpresent a great challenge to proper planning for you, your family, and yourestate.
While there are countlessexamples, a very recent and public one is the case of the aforementioned MertonD. Simpson. As reported by The New YorkTimes in an article titled â€œArt Worth Millions, Yet No Cash for Burial,â€careful planning is required to meet â€œliquidâ€ cash needs virtually every estateencounters. Whether paying last health care expenses or other debts, you atleast want to have enough cash for your funeral.
Mr. Simpsonâ€™s entire estate wasworth millions in a vast collection of African and modern art, not to mentionart in his own name as an artist of no little esteem. Tragically, in the endthere was no money for the funeral. In addition, what happens if and when thetaxes come due? Thatâ€™s when expensive collections of illiquid assets are soldat auction, oftentimes for pennies on the dollar.
Now thereâ€™s more to the story of Mr. Simpson and manymore lessons to be gleaned regarding proper financial and estate planning, aswell as a bit of family intrigue. The takeaway: if one dies with an estate ofpriceless, illiquid assets â€“ then oneâ€™s estate may find itself deep in thedesert with a purse full of gold, but not a drop of cool water to drink.
At IdahoEstate Planning we are the experts you need to know and trust.Work with us and we'll put together a plan that works for you and your lovedones. Remember, goodplanning is no accident.