What if Your Heir Does Not Want Your Collection? | TIGER 21 Chair in Crain Currency

In February, the Miami art community mourned the loss of Rosa de la Cruz, a key figure in transforming Miami into an art destination. A Crain Currency article by Andrew Cohen explores why her family decided to sell her art collection and provides insights on keeping valuables within the family.

Rosa passed away at 81 and left behind a legacy through the de la Cruz Collection, a private museum opened in 2009 offering free public access to contemporary art. Two months later, the museum closed, and its pieces were auctioned off. With the remaining family members not wanting to keep the collection, her husband Carlos de la Cruz explained their decision, “Rosa’s wish was for each of the artworks she loved so dearly to find new homes where they can enter their next chapter and continue being seen, loved, and appreciated for years to come.”

Doug Johnson, Denver & Family Office TIGER 21 Chair and lifelong wine collector, warned against letting tax benefits dictate decisions about family collections. “Don’t let the tax tail wag the dog,” he said, “If no one in the family is interested, and the market is favorable, selling might be the best option regardless of tax implications.”

The de la Cruz family’s situation highlights the challenge of passing on the passion for collections to heirs. It underscores the need for open conversations and estate planning to ensure the seamless transition of valuable collections, as maintenance costs often lead heirs to sell inherited items.

Read the full article.