Art & Law. Succession planning and management collection
ARTinvestment.RU   14 апреля 2020

The article is devoted to collectors of the theme of the succession-planning related to the desire to preserve the collection of art objects after death and to provide for certain terms of the management of the collection, including disposing of it

works of art often have significant emotional and monetary component, so the collector should seriously approach the issue of planning and inheritance arrangement of art objects.

Collectors — wealthy people, assets and businesses located inside and outside Russia. This dispersion of assets, as a rule, leads to complex legal procedures for the entry into the inheritance; specific actions of the heirs will depend on the composition of the assets and jurisdiction of residence.

succession Planning of the collection requires the testator to first decide a number of issues:

1. Whether all the documents related to the attribution, provenance, title to the collection stored? (see AI: "Art & Law. Bona fide acquisition and ownership of the artwork").

2. Where there are works of art in a Swiss Chalet, on the wall of an apartment in Moscow, transferred for display in a Museum in the UK, etc.? The heirs need information about the current location of items, and the collector to the registration of wills should be consulted, the right of any country to apply to the procedure for the entry into succession (of the country of his last residence or location of the assets) and how it is best to plan your design.

3. Does the relevant jurisdiction inheritance tax and, if so, whether the tax is levied on works of art? In Russia inheritance tax no (according to section 18 of article 217 of the RF Tax code are not taxable (exempt from taxation) income received in monetary and natural forms, received from physical persons as inheritance, except for compensation paid to the heirs (legal successors) of authors of works of science, literature and art, as well as compensation paid to the heirs of the patentees of inventions, utility models, industrial designs).

4. Does the relevant jurisdiction entitled to a compulsory share of inheritance and who falls under this category? According to Russian law, the relationship for the inheritance of movable property are determined by the law of the country where the testator had the last place of residence (article 1224 of the civil code). In Russia, freedom of the will is limited to rules about an obligatory share in the inheritance, which relies to certain individuals, despite the will. To claim the compulsory share can minor or disabled children of the testator, his disabled spouse and parents, as well as the disabled dependents of the testator; last, regardless of the contents of the will, inherit at least half of the share that would have been payable to each of them at inheritance under the law.

the Russian legislation contains no special provisions for inheritance of art. However, in the framework of inheritance planning is to take seriously the compilation of an inventory of inherited property, including works of art, cultural values, and its notarial registration. Usually when planning and the design of inheritancemore attention to real estate, stocks, Bank accounts, but the negligence of the testator in respect of the registration of art objects may result in the fragmentation of the collection and reduce its value based on the integrity of (a curatorial approach to collection).

As it is today in Russia you can transfer your property inherited? In accordance with Russian civil law inheritance is by will, inheritance contract and the law.

From September 1, 2018 in the Russian Federation there are provisions on inheritance Fund which may be established after the death of the testator. With the help of hereditary Fund to eliminate negative fragmentation of assets, to separate the collection from-активов and keep it, provide charitable. The Fund may be established for a specified period or indefinitely in accordance with the terms of the management of the Fund. To create hereditary Foundation requires that the will be included the decision of the testator to establish a Fund, the Fund's Charter and the terms of the management of the Fund.

From June 1, 2019 entered into force the provisions in relation to wills. Now to dispose of the property in case of death by making wills, including joint wills of spouses, conclusion of the hereditary contract.

the Property acquired by spouses during marriage is their joint property if the agreement between them does not state any other mode of this property (mode involves the possession, use and disposal. — Yu). Property owned by spouses prior to the marriage and received by them during marriage as a gift or inheritance, is the property of each of them (article 256 of the civil code).

In a joint will of spouses they are entitled by mutual consent to determine the following effects of the death of each of them: to bequeath community property and property of each of them to any person@the semicolon to determine what part of marital property will be included in the estate upon the death of a spouse, and what goes in the sole property of the surviving spouse and other conditions in accordance with the law. Joint will of spouses becomes invalid in case of the divorce or annulment of marriage, both before and after the death of a spouse.

the Testator may make a will, and to conclude a hereditary contract. Hereditary contract is an agreement between two parties (the testator and heir (-ов)), in which the testator stipulates conditions of obtaining the inheritance, the order of transfer of rights to the estate of the testator after his death, the duty of persons who may be entitled to inherit, what to do-либо not contrary to the law of action of property or non-property nature, the terms of the disposition of specific property, etc.

the Collector must remember that the heirs may not always be the same level of awareness of the value of the collection, of interest in its preservation and professional management therefore, without proper protection Assembly, clear conditions and requirements in the framework of inheritance planning not to do.

Yulianna Vertinskaya, Legal&Compliance, especially for the AI

the Article is published for information only and is not legal advice