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Art & Collectibles

Art and collectibles can represent a considerable size of the assets held by many HNW individuals, if not the main part.

Art as an asset class, besides being the object of great passion, in the last decades has represented an important tool for diversification and alternative investment.

Contemporary art, in particular, is the subject of growing interest and has stimulated the creation of dedicated services within the financial and trust sector, offering new opportunities to investors who are more and more sophisticated and attentive in diversifying their portfolio.

These developments show that there is a significant need to integrate the collector’s activity into asset management. Services such as strategic planning, creation and optimization of liquidity, risk management and due diligence, development of adequate reporting systems, as well as the optimization of taxes and an orderly transfer of assets to the heirs, are fundamental for a conscious management having in its best interest the protection of such valuable objects.

The trust instrument is in this case an appealing solution both for holding and transferring art objects and collectibles. Thanks to its guarantees of segregation, it offers an effective protection of the assets, avoiding their dispersion even more in the case of vast collections that require a reasoned and unitary management.

For a collector, the most interesting aspect is the possibility to fully enjoy the goods even after the dispossession, both in cases where they are destined for future use by a charity (for example a foundation), but also when part of an inheritance, and the choice of placing them in a trust was related to a more efficient management for the heirs’ benefits.

Capital Trustees is actively committed in supporting investors and collectors in the conscious development of asset management strategies that take into consideration and harmoniously integrate artistic and collectible assets. Among the services offered by the firm, there is in fact the creation of trusts that include in the trust fund, in an exclusive or non-exclusive way, art collections, single works, or other valuable collectible objects (wines and spirits, cars, jewelry, watches, etc.).

A trust, however, needs a series of often articulated structures; for this reason the trustee was conceived as a natural catalyst for the coordination of various expertise, and to better fulfill his duties he will advocate the technical support of professionals for the following areas of activity:

  • asset management processes, including income generation, fairs exhibitions, use of the assets as a guarantee for the request of loans, their possible sale or possible new purchases;
  • consultancy on tax and legal aspects related to holding such assets, as well as to their circulation, possible donation or inheritance transfer, in order to outline the objectives within a wider wealth planning strategy;
  • management of Artist’s Estates with the aim of perpetuating the artist’s legacy;
  • relationship management with third parties such as customs, banking institutes, valuators or specialized restorers, administrative offices, museum etc.;
  • selection of operators, such as insurers and logistics operators, who will need to be reliable and with proven experience in this particular sector;
  • relationship management with Freeport structures, which are duty and tax-free warehouses, offering very high safety standards, both in Switzerland and in other countries;
  • development of philanthropic strategies concerning art or collectibles, with the possibility of integrating social purpose activities into a managerial structure dealing with private interests.