Author Topic: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)  (Read 4124 times)

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Offline KeepOnTrying!

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Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)

Wealth is liable to become dissipated as it passes from the original generator to and through offspring and associated beneficiary entities. Some families are able to safeguard and grow their wealth from one generation to the next but the human experience is such that this is in the minority.

Yet the ability to seamlessly transfer and protect one's wealth is something I suspect most coin and medal collectors would like to have. For one it validates the collector's life efforts. For another it fulfills a need to improve the lot of beneficiaries, and not necessarily just the first generation of!

What should coin collectors do with their collection in preparation for transfer or disposal at or close to end of life? What PRACTICAL steps should be taken to make this happen?
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Offline comeaux

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #1 on: September 24, 2015, 01:20:00 AM »
When I am gone I would hope that my son would keep my coins and other collectibles as family keepsakes but would never burden him or my wife with the stress of having to sell these things to survive.

I don’t believe any collectible should ever be relied upon to provide security for a family. Diversified investments, CASH & substantial life insurance is your best bet. I love my coin collection but it doesn’t even come to mind when I think of my family’s welfare when I am gone.   

In my opinion if family/beneficiaries have to depend on a coin collection or any other type of collectible for their comfort and financial security then you are doing it all wrong. 

Offline NBM

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #2 on: September 24, 2015, 05:00:11 AM »
In my opinion if family/beneficiaries have to depend on a coin collection or any other type of collectible for their comfort and financial security then you are doing it all wrong.

comeaux pokes another hole in a common pumpers myth.  N16
Good work!  N34

Online jc888888888

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #3 on: September 24, 2015, 08:42:31 AM »
I am not waiting till I die :)   I am hoping to get both of my daughters interested in collecting but so far they like dolls better :) but they do show interest.Anyway at the very least I will teach them ,how to establish value and how to sell slowly to create a stream of income if they ever need to and not wait till there is a crisis to turn the collection into cash  but to take there time and do it slowly if they must or want to liquidate..My family will not be reliant on my collection for their security . I look at it as icing on the cake for them .... Anytime you need to liquidate anything in a hurry you stand the chance of a fire sale.... 

Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #4 on: September 24, 2015, 09:00:22 AM »
When I am gone I would hope that my son would keep my coins and other collectibles as family keepsakes but would never burden him or my wife with the stress of having to sell these things to survive.

I don’t believe any collectible should ever be relied upon to provide security for a family. Diversified investments, CASH & substantial life insurance is your best bet. I love my coin collection but it doesn’t even come to mind when I think of my family’s welfare when I am gone.    

In my opinion if family/beneficiaries have to depend on a coin collection or any other type of collectible for their comfort and financial security then you are doing it all wrong.  


This is a great point you make as this is the underlying principle of collection as compared to investment in coins. However in both instances there are several things that need to be done so as to safely transition the collection and the potential wealth it may represent from the original collector through his/her lineage.

For example I feel the collector needs to decide on whether the collection should be (1): preserved as a whole, (2): broken up and shared amongst beneficiaries, (3): donated to institutions such as museums, (4): managed using a combination of the above or other options considered.

I am not thinking in terms of selling the collection; my belief is that a comprehensive estate plan will enable the collection to be preserved as well as expanded by beneficiaries to the point where the value it represents will be one of the cornerstones of a family's wealth and standing in the community. We already have examples all over the world of art, coin and other collectibles being owned by families and lent out for exhibitions and other activities.

Strategic selling and adding of additional components to the collection may be carried out by astute beneficiaries.
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Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #5 on: September 24, 2015, 09:24:15 AM »
comeaux pokes another hole in a common pumpers myth.  N16
Good work!  N34

Excellent point to make. Coin selling businesses as compared to collectors and investors are the ones that are best structured to make money in the short to medium term from coins and medals. A collector or investor tends to have money locked into the collection for long periods and can't efficiently extract the money without devaluing the collection.

Cynical attempts at manipulation of the coin market eventually discredit the guilty party. Collectors and investors always have to be careful to avoid being sucked into untoward schemes, and should try their best to protect their beneficiaries from such.

Another extreme of what you mention is the predator who seeks out new coin inheritors to stampede them into selling at ridiculously low prices due to their inexperience.

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Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #6 on: September 24, 2015, 09:36:04 AM »
I am not waiting till I die :)   I am hoping to get both of my daughters interested in collecting but so far they like dolls better :) but they do show interest.Anyway at the very least I will teach them ,how to establish value and how to sell slowly to create a stream of income if they ever need to and not wait till there is a crisis to turn the collection into cash  but to take there time and do it slowly if they must or want to liquidate..My family will not be reliant on my collection for their security . I look at it as icing on the cake for them .... Anytime you need to liquidate anything in a hurry you stand the chance of a fire sale.... 

Somewhere in this forum or elsewhere I told the story of someone I introduced to MCC collection. That individual had already been collecting US mint products over the years. The grandparents and parents were all collectors and transferred their knowledge and subsequently their collection to the individual when they died. As far as I know the collection has remained intact.

Teaching your children about coin collection is an important part of the process of asset transfer. If they become avid collectors then the collection expands. Even if they are not interested in expanding the collection the knowledge will assist them to efficiently manage what they have or dispose of it without losing money.
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Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #7 on: September 24, 2015, 11:16:48 AM »
I believe record keeping is one of the most important aspects of coin collection and eventual transfer. I cannot say that I am doing alright in that arena right now but I keep on trying!

You can set up a record for each piece to include information such as purchase price, whether you expect it to appreciate or if it is just a decorative piece or has more cultural than financial importance. Other information can help even you to remember what your plans were for each piece or set. It can include advice on when to sell or not (never) to sell etc.

Records can be kept electronically, on paper or both. Your electronic records can be accessed remotely by hackers or government agencies. Paper records can be misplaced, stolen, burnt or even hidden by others. Despite all these there is still need for coin records.

What format do you use and what are the components? Do you keep a loose sheet file or bound ledger-type record? What information do you advise collectors to record? Can you share a redacted copy (minus personal details) with forum members? We all can learn from each other. Thanks.
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Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #8 on: September 24, 2015, 05:31:10 PM »
I believe record keeping is one of the most important aspects of coin collection and eventual transfer. I cannot say that I am doing alright in that arena right now but I keep on trying!

You can set up a record for each piece to include information such as purchase price, whether you expect it to appreciate or if it is just a decorative piece or has more cultural than financial importance. Other information can help even you to remember what your plans were for each piece or set. It can include advice on when to sell or not (never) to sell etc.

Records can be kept electronically, on paper or both. Your electronic records can be accessed remotely by hackers or government agencies. Paper records can be misplaced, stolen, burnt or even hidden by others. Despite all these there is still need for coin records.

What format do you use and what are the components? Do you keep a loose sheet file or bound ledger-type record? What information do you advise collectors to record? Can you share a redacted copy (minus personal details) with forum members? We all can learn from each other. Thanks.

Attached is a coin record sheet that I use. It is still undergoing modification based on experience. The best form should have just enough information but not so much as to make it unwieldy for quick use and reference. The data can also be held in an excel spreadsheet. In this case a simple database query can tell you how much you own!
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Offline KeepOnTrying!

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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #9 on: September 25, 2015, 12:33:23 AM »
No need collecting gold, silver, brass, copper, bronze, CUNI and all those whatchamacallit coins and medals only to let airborne and environmental impurities degrade them. Whilst a large proportion of collectors prefer or don't mind keeping coins as OMP consideration should be given to encapsulating hereditary pieces if the plan is to keep them in the family for a long time. Conservation before slabbing will be necessary for mishandled coins and others whose currently unacceptable status could be associated with more substantial damage in future. Even slabbed coins seem to benefit from controlled climate storage with desiccant sachets and enclosed in special air-reconditioning (archival storage) bags.
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Re: Getting Your Coin Holdings Ready for Beneficiaries or Estate Manager(s)
« Reply #10 on: September 18, 2016, 09:36:04 AM »
Summary
Precious metal holdings could be an important component of a well crafted plan to transfer but maintain and increase family wealth over several generations. This will avoid the dissipation of wealth that often occurs following the death of the original wealth creator, where there is a tendency to split the estate amongst beneficiaries. The dilution of wealth increases with the number of beneficiaries.

However, it requires careful thought and planning to prevent internecine warfare.

It still does not mean that individual members can’t benefit personally from the stack.

The precious metal holdings could be split into two or more components:
A: Core holdings (To be managed and propagated by the administrator and advisory board)
B: Beneficiary Stack (To be shared amongst beneficiaries immediately).
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