Some of the replicas collected by Americans when traveling in Europe many years ago, can be very valuable today and must be handled carefully in an estate plan, according to Barron's in "Taxing Collectibles: What You Need to Know. One couple has gone so far as to amass a collection of them, consisting of approximately 4,500 pieces.
For estate planning purposes, valuable collectibles like those replicas can create challenges. The value of any collection can be taxed, if it is part of the estate for estate tax purposes. As a result, it is important to plan around any potential problems.
There are several things that can be done. For example, if no one in the family wants to inherit them, they can be donated to charity for a tax benefit. Keeping them in the family to take advantage of the higher estate tax exemption is also possible. You might also consider creating a separate pass through entity to hold them.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and may include a valuable collection.
Reference: Barron's (March 25, 2017) "Taxing Collectibles: What You Need to Know."