Hard conversations are needed when passing on valuable collections

Whether it’s works of art, vintage cars or fine ceramics, building a collection can create a lot of joy. But that’s the easy part.

Discussing within families what should happen to the collection at the point of succession, and who gets to make those decisions, is far harder.

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Andra Ilie, Senior Adviser, Family Office, Governance and Philanthropy, EMEA, HSBC Private Bank

It’s not an easy conversation to have. Fear of mortality can be a psychological barrier – the collector may not want to face up to the need to make provisions, nor may their heirs.

However, it’s important that families have those conversations and that decisions are formalised before it’s too late.

Getting a head start

When it comes to passing on valuable collections, collectors who pass on their passion to the next generation have a head start.

I’ve often seen one generation start a collection and gradually bring their children into it, so it becomes a shared tradition - something they build together over time that strengthens their sense of identity and adds a meaningful thread to the family story.

But this is not always the case. Collecting is often deeply personal, which means collections can be highly specialised or even quite esoteric – they do not always resonate with the next generation.

In these situations, heirs may consider selling all or part of the collection, but where it is sizeable, the process can feel complex and overwhelming. This is particularly true during a period of bereavement, when there may be a sense of guilt about parting with possessions that held significant meaning for someone they loved.

Why does a collection exist?

The implications of not having discussions and formalising arrangements in time can be enormous on an emotional, operational and financial level.

Resolving the situation starts with removing passion from conversations about the inheritance of passion assets.

It helps to incorporate discussions about passion assets alongside other assets. Both then sit side-by-side within the broader framework of estate planning.

One fundamental principle is clear – it’s crucial to articulate why a collection exists. Once this is done, it is easier to think through the long-term objectives for it, while avoiding short-term sensitivities about who will get what and when.