EUROPEAN APPROACH.
Britain allows heirs to pay its estate tax in art that is “preeminent for aesthetic merit or historical value,” and France routinely accepts artworks as payment for its succession taxes. For instance, death duties for Picasso, who left no will, were paid largely in the form of his works, which now make up the core of Paris’ Musée Picasso. The U.S., by contrast, generally does not accept in-kind payment of estate tax. It has done so only in very rare instances—each of which required special authorizing legislation—involving rare coins, historic photographic plates and land.

Collectors contemplating the cheerful topic of death and taxes—and mindful of the adage ars longa, vita brevis—should plan ahead. With solid professional advice and careful consideration, they may find ways of sparing their heirs a king’s ransom in estate taxes, even if their castles are only condos in Queens.

"You Can't Take It With You" originally appeared in the August 2008 issue of Art+Auction. For a complete list of articles from this issue available on ARTINFO, see Art+Auction's August 2008 Table of Contents.