Things To Consider When Estate Planning

Time keeps marching on. Estate settlement is an eventual consequence for so many of us. Do you desire a seamless transition when it comes to what will happen to your coin collection when you’re no longer able to care for it? It all comes down to estate planning at the end of the day. And including your attorney in any estate planning is essential, but does your attorney know about your numismatic holdings? Do you keep your attorney updated on changes in all of your assets?

Your wishes won’t necessarily be honored unless you make preparations.

Estate planning for numismatics is essential for anyone who already has numismatic assets and/or anyone considering investing in coins or bullion. Especially if you have numismatic assets, you can’t assume that others, including your closest family members, know what you want. Ultimately, your planning now for these matters will be crucial later!

It All Starts with a List

Foundationally, your numismatic assets must be inventoried with some type of list. A spreadsheet program provides a shareable format that you can update and edit. Basic information about your coins, including their country of origin, date/mintmark, denomination, and grade, is essential. Including a notes section for additional information is helpful, too. On a basic level, any list (even one that is handwritten) will be helpful.

Keep copies of and/or access to your list with your coins as well as with your attorney and/or executor. Preparing a list not only facilitates any sale or liquidation, but also including your wishes (with your list) – especially if they are specific – will certainly be beneficial.

For PCGS-graded coins, most of this basic numismatic information you should include in a spreadsheet or inventory list is already included on the PCGS-encapsulated coin’s holder label. This is in addition to a unique serial number and a PCGS coin number identifying the coin’s date, mintmark, denomination, and grade, as well as any further subtype attribution.

Any additional information you can include about your coins can be beneficial, including the cost, vendor, and date of purchase. Ultimately, sharing recommendations on dispositions for your coins might be important, too. For example, do you have a dealer or auction house who you would recommend either to sell to or to auction for you? If so, include this information in these recommendations in your notes for both your attorney and heirs.

Preparing an inventory list at any time, one which you can update periodically, is such a good practice whether for estate planning purposes or simply for your own reference. With this list, your ability to share vital information about your coins and related information for one to inquire about your coins grows exponentially.

One of the most efficient and wrinkle-proof ways to build a solid list is to use an inventorying system. For example, the PCGS Set Registry is one such tool that is both free and convenient. Many astute numismatists and investors register their PCGS-graded coin sets on the PCGS Set Registry to rate and compare their sets against others, all with the exceptional market-grade acceptance of the same PCGS-graded coins. Registering your PCGS-graded coins or sets with the PCGS Set Registry is an excellent method to inventory your coins with the perfect list – one that your attorney, executor, heirs, or others in your circle can access.

How Much?

Naturally, the first question typically asked in any estate liquidation or preparation is, “how much is the estate worth?” Frankly, this is probably the most important question!

Most coin collections don’t warrant a lot of attention in the grander scheme of the hobby because the value of a typical coin collection isn’t relatively significant. Many have some value – perhaps several hundred or maybe a few thousand dollars. But the premiums are often bullion based and not necessarily tied to great scarceness or rarity. Understanding that most small collections and accumulations with modest total value under several thousand dollars will steer their ultimate sale isn’t bad – that may indeed be all they’re worth. Yes, but how do you know?

Inventorying your best coins first is logical, but how do you know which are your best coins if you aren’t a numismatist? Using the coins’ original prices, if available, makes sense as a starting point, but values are always fluid. An appraisal or valuation done at an earlier date isn’t necessarily relevant, but the valuations will provide a base point.

One of the first questions a numismatic professional will ask you is whether or not you have a list of some type. From just a basic list of the country of issue, date, mintmark, denomination, and some description of condition, there is enough information to provide a numismatic professional with a map of sorts in that they will know which coins listed need further examination and/or valuation.

In addition, you can email, text, or mail this list to anyone you wish who asks for information on the values of your coins at any time. With a list, you can determine approximate values.

Another way to ascertain approximate values is to refer to the PCGS Price Guide. This free and comprehensive pricing tool is available online and can help you determine the retail values of your PCGS-graded coins. With the PCGS Price Guide, you could readily assign these current market values to your coins and arrive at a rough estimate of what your collection is worth.

So, the bottom line? Make a list (and check it twice!).

What Are My Options?

With liquidating, or dispersing, your numismatic assets, you generally have three options: you can sell, gift, or donate your coins. Of course, these aren’t mutually exclusive paths for liquidation. You can certainly sell some, gift some, and donate some. The point is that you have options, but let’s explain the practicalities behind some of the options.

Selling your coins is relatively straightforward, and a great many estate transactions are liquidated by way of selling. But you do have options for how you sell. You can sell your coins directly to a dealer or another collector. Or you can consign your coins to an auction house. Each path has its own set of advantages. Yet, no matter the path you choose, having an inventory list is essential.

Before we detail your options, let’s discuss some of the practicalities of sales, gifts, or donations in terms of valuation. A modest collection or accumulation won’t usually be of interest to a major auction house or museum. Most collections or accumulations are sold to dealers or collectors or gifted to family or friends, but you still need a list.

Since a list will enable you to get some professional opinions on what coins you have, you can determine which option works best for you. Direct sales or consignment for auction are straightforward, but the fees for auction consignment are variable and often dependent on the value of the item.

Less-expensive coins or sets (often anything under $1,000) will be lot grouped. Single rare coins do well at auction, but less-expensive merchandise usually does not. Auction consignment might involve both a consignor (you) fee and a buyer’s fee, depending on the auction hammer price of the coin. For example, most major auction houses charge a 20% buyer’s fee on the hammer price, though sometimes their consignment agreement charges the seller a percentage also based on the hammer price. Always carefully review your consignment agreement prior to signature.

Once again, rare coins often perform well on the auction block. Consignment fees on more common and generic items might not be beneficial to you.

Direct sales involve no fees, but the dealer buyer is offering to pay you a price from which they can derive profit. In other words, they are offering you less (their profit) than they think they can sell it for. Once again, from a list, you can determine the options you have for your coins. Most dealers will quote you a minimum ballpark price on many U.S. coins from a list, especially if they are PCGS graded.

It is advisable to work with PCGS Authorized Dealers. They will have the knowledge and expertise necessary for handling your coins and helping to facilitate their liquidation.

Some Final Thoughts

While this article is designed to provide you with some general guidance on some of the things you will need to do when addressing your numismatic assets in your estate planning journey, none of this information replaces what your attorney will provide. A lawyer will provide you with the personalized information and guidance you will need to adequately prepare your estate within consideration of your unique needs and legal circumstances.

Still, knowing what kinds of questions to ask, getting an idea on what the process entails, and understanding the importance of being your own best numismatic advocate are at least three of the areas this article aims to highlight. Having enough knowledge and professional legal counsel will help ensure that planning the future of your estate goes as smoothly and securely as possible.